The world’s first subsea storage of 5,300 tonnes of CO2 costs billions of Danish kroner.
By On September 19 of this year, the CO2 tanker *Carbon Destroyer 1* is set to carry out its first transport and the world’s first injection of CO2 into a subsea storage site. CO2 will be pumped from the tanker to a depth of 60 meters below the seabed. This operation is made possible by €41 million in funding from the EU Innovation Fund for this unique solution under the Greensand Future project. The total cost of the project for Denmark exceeds 1 billion Danish kroner.
The project was financed using revenues from the EU Emissions Trading System (EU ETS). Funding for projects aimed at developing innovative technologies is moving ahead rapidly. Companies are using these funds to implement new technologies designed to save the planet from rapid warming caused by human industrial activity. The EU Innovation Fund has allocated €11.7 billion to projects, according to the European Commission’s “2026 annual knowledge sharing report of the Innovation Fund.”
“Of the 197 projects, 42 reached financial close by the end of 2025, and 20 have been successfully implemented,” the European Commission reports, highlighting that the Innovation Fund “is one of the world’s largest funding programs supporting demonstration projects and the deployment of innovative net-zero and low-carbon technologies.” The 2026 report was published because “knowledge sharing is an essential part of the program.”
An analysis of projects already underway or completed shows that implementation does not always go smoothly; “delays in the permitting process” have been noted. Obstacles arise not only from the actions of officials; “regulatory uncertainty also affects the implementation of many projects.” The report’s authors suggest addressing permitting hurdles through the proactive engagement of state and local administrative bodies. Careful project site selection and close coordination among stakeholders play a crucial role in this process.
An analysis of both ongoing and completed projects reveals that implementation does not always run smoothly; “delays in the issuance of permits” are noted. Obstacles arise not only from the actions of officials; “regulatory uncertainty also affects the implementation of many projects.” The report’s authors suggest addressing permitting hurdles through the proactive engagement of state and local administrative bodies. Careful project site selection and close coordination among stakeholders play a crucial role in this process.
Greensand Future to sequester CO2
The Danish “Greensand Future” project is cited as a model example. In its first phase, the project entails the permanent storage of 2.4 million tonnes of captured CO2. This will be achieved by injecting 0.3 million tonnes of CO2 annually—with the potential for higher volumes—over a period of eight years into a depleted oil reservoir in the Danish North Sea. On December 9, 2024, the Greensand Future partners (INEOS, Harbour Energy, and Nordsøfonden) made the final investment decision regarding the first commercial phase of capturing CO2 from the market, transporting it offshore, and injecting it beneath the seabed. In this initial phase, biogenic CO2 will be sourced from Danish biomethane producers and transported to the Port of Esbjerg for temporary storage. The CO2 terminal was developed through a partnership between the Port of Esbjerg and INEOS and is operated by INEOS.
Location of subsea CO2 reservoirs and the Port of Esbjerg. Source: Greensand Future Project
From the Port of Esbjerg, CO2 will be transported to the depleted Nini West oil field for storage. The CO2 will be carried by the world’s first dedicated offshore CO2 tanker, named *Carbon Destroyer 1*. The vessel was built by Royal Wagenborg.
“The red-painted, rusting Nini metal platform rises from the North Sea, 240 kilometers off the Danish coast, where it has been pumping fossil fuels for decades,” writes Jonathan Leake in *The Telegraph*, describing a key element of the innovative project.
The CO2 “Destroyer” in civilian guise
The *Carbon Destroyer 1* CO2 tanker is based on the proven design of Wagenborg’s *EasyMax* general cargo vessel. Its installed tanks are designed for loading and transporting liquid CO2. This 150-meter-long ship is equipped with insulated, refrigerated, and pressurized tanks developed in collaboration with the Belgian company Geldof. These allow for the transport of CO2 in a liquid state at a temperature of -30°C and a pressure of seven bar.
“Technically, this ship pushes boundaries in every respect. We have built a vessel that meets offshore class standards, integrates advanced tank technology, and operates with minimal environmental impact.” “This is an engineering challenge that combines shipbuilding, offshore operations, and climate innovation into a single project,” emphasized Fokke Jan Botke, Director of the Royal Niestern Sander shipyard, during the vessel’s handover.
The Niestern Sander shipyard is known for constructing complex vessels for the offshore energy market. For INEOS Energy, the need for scalable CCS solutions is both strategic and urgent.
“We know we cannot decarbonize Europe without taking bold steps to manage emissions at the source,” said Mads Weng Gade, CEO of INEOS Energy, upon taking delivery of the ship.
“Project Greensand is not just a Danish project; it is a model for industrial decarbonization across Europe. We needed partners who understand large-scale logistics and can translate complexity into reliable operations—and Wagenborg delivered that for us,” Mads Weng Gade emphasized.
King Frederik of Denmark to visit the platform
King Frederik of Denmark has invited the UK Ambassador to attend the launch of the CO2 injection facility. The INEOS Greensand CCS project will be inaugurated on September 18 of this year. The operation will be carried out by the vessel commissioned by Sir Jim Ratcliffe. Loaded with CO2, the tanker will depart from the Danish port of Esbjerg to inject 5,300 tonnes of liquid CO2 into caverns deep beneath the North Sea seabed.
By 2030, Greensand Future will have the potential to safely and permanently store up to 2 million tonnes of CO2 annually. “This corresponds to the annual emissions of approximately 275,000 Danish residents,” explains INEOS Energy, the project leader. Sir Jim, the founder and CEO of INEOS, envisions a fleet of ships transporting CO2 over long distances to store it deep beneath the seabed.
“Instead of extracting millions of barrels of oil and gas—which contribute, albeit to a small but significant degree, to climate change—the Nini platform is going into reverse. Rather than pumping oil up, it will soon begin injecting CO2 down, back into the Earth’s crust, where it will be permanently stored,” explains Jonathan Leake.
Two wells located 60 meters below the seabed—formerly used for oil extraction—have been re-engineered to inject CO2 to a depth of 1,800 meters. With the site becoming operational this month, it marks the first commercial carbon capture and storage (CCS) facility in the North Sea. The project aims to eventually store 8 million tonnes of CO2 annually.
The Danish team emphasizes that the first phase of the Greensand project helps avoid the emission of nearly 2,252,000 tonnes of CO2—equivalent to the annual emissions of around 330,000 Danish residents. In this initial phase, the project is expected to avoid 94% of greenhouse gas (GHG) emissions compared to a baseline scenario in which CO2 is released into the atmosphere. Greensand Future is set to be the first operational storage facility in the EU.
The cost of upgrading the vessels and the port is estimated at over DKK 1 billion. Significant support was received from the European Commission, including €41 million from the EU Innovation Fund. The initial funding covers the entire production and service chain, including CO2 capture and compression logistics, maritime transport, and offshore injection facilities into North Sea caverns.
The CO2 terminal was developed through a partnership between the Port of Esbjerg and INEOS and will be operated by INEOS. Thanks to support from the government and local authorities, the project avoided delays in contracting subsequent phases and successfully managed supply chain volatility. Domestic supplies were utilized extensively, leveraging Danish local content.
