Jul 2, 2015

Will the Danish accept their country's switch to renewables?

Tomas H. Lucero
3 min
Four and a half decades after setting their goal, today Denmark is ready to completely move to renewable energy. Denmark’s path towar...

Four and a half decades after setting their goal, today Denmark is ready to completely move to renewable energy.

Denmark’s path towards renewable energy began in the 1970s with the energy crisis, writes Stephanie Joyce in her article for the Rocky Mountain PBS iNews.  At that time, Denmark used too much imported oil in its power plants. Then the oil embargo came and the price of crude skyrocketed. For the Danish, the whole ordeal was a disaster.

[related: Foreign investors get serious about renewables in India]

“Out of the crisis, a policy direction emerged for the country. Initially, the government promoted energy efficiency and switching to coal-fired power plants, since coal didn’t have the same supply chain issues as oil. But Denmark doesn’t have its own coal reserves either, and as climate change became a concern and technology improved, the country saw an opportunity to use an abundant domestic natural resource: wind,” writes Joyce.

Since then, Danish energy policy has not changed despite having gone through conservative and liberal governments.  

[related: It is possible and cost effective for entire US to go green by 2050, says Stanford]

Joyce outlines the main reasons why Denmark was able to achieve a long term consensus regarding energy policy. “Denmark has achieved this remarkable consensus on energy policy in a few ways. First, demographics: the country is smaller than West Virginia, and has 5 million people, compared to 320 million in the U.S. Second, a tiny fossil fuel industry. Denmark doesn't have much in the way of coal, oil and natural gas, so there’s been little pushback from those industries as the country has shifted away from fossil fuels. Consensus is a big reason why the country’s renewable sector is so well developed,” she writes.  

[related: Nicaragua among green energy leaders in Latin America]

However, there are technological and social challenges Denmark faces as it switches to renewable energy. The first problem is grid stability. Keeping the grid balanced “while increasing the amount of renewable energy to its current level of almost half the country’s power supply,” has been a challenge.

To answer this challenge, the Danes built a massive transmission system to import and export power to other countries. These other countries include Sweden, Norway and Germany. The Danes still have to figure out energy storage. In essence, they need a smart grid.

“There have been several test projects in Denmark, including the EcoGrid EU project profiled by Inside Energy, but widespread commercial deployment is still a way off,” writes Joyce.

[related: Top 10 Energy Breakthroughs]

The social challenge is getting Danes to embrace renewable energy.

“Christensen argued that in the past, they focused too much on developing the technical solutions, and not enough on convincing people they’re necessary – something that's a problem in the U.S., too. Electric cars and smart thermostats exist, but for most people, it's not clear why they should buy them. Dansk Energi has hired anthropologists and social scientists to figure out how to convince people, but Christensen expects it will take time, maybe a decade or more,” writes Joyce.

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Jul 29, 2021

Carbon dioxide removal revenues worth £2bn a year by 2030

Energy
technology
CCUS
Netzero
Dominic Ellis
4 min
Engineered greenhouse gas removals will become "a major new infrastructure sector" in the coming decades says the UK's National Infrastructure Commission

Carbon dioxide removal revenues could reach £2bn a year by 2030 in the UK with costs per megatonne totalling up to £400 million, according to the National Infrastructure Commission

Engineered greenhouse gas removals will become "a major new infrastructure sector" in the coming decades - although costs are uncertain given removal technologies are in their infancy - and revenues could match that of the UK’s water sector by 2050. The Commission’s analysis suggests engineered removals technologies need to have capacity to remove five to ten megatonnes of carbon dioxide no later than 2030, and between 40 and 100 megatonnes by 2050.

The Commission states technologies fit into two categories: extracting carbon dioxide directly out of the air; and bioenergy with carbon capture technology – processing biomass to recapture carbon dioxide absorbed as the fuel grew. In both cases, the captured CO2 is then stored permanently out of the atmosphere, typically under the seabed.

The report sets out how the engineered removal and storage of carbon dioxide offers the most realistic way to mitigate the final slice of emissions expected to remain by the 2040s from sources that don’t currently have a decarbonisation solution, like aviation and agriculture. 

It stresses that the potential of these technologies is “not an excuse to delay necessary action elsewhere” and cannot replace efforts to reduce emissions from sectors like road transport or power, where removals would be a more expensive alternative.  

The critical role these technologies will play in meeting climate targets means government must rapidly kick start the sector so that it becomes viable by the 2030s, according to the report, which was commissioned by government in November 2020. 

Early movement by the UK to develop the expertise and capacity in greenhouse gas removal technologies could create a comparative advantage, with the prospect of other countries needing to procure the knowledge and skills the UK develops.

The Commission recommends that government should support the development of this new sector in the short term with policies that drive delivery of these technologies and create demand through obligations on polluting industries, which will over time enable a competitive market to develop. Robust independent regulation must also be put in place from the start to help build public and investor confidence.

While the burden of these costs could be shared by different parts of industries required to pay for removals or in part shared with government, the report acknowledges that, over the longer term, the aim should be to have polluting sectors pay for removals they need to reach carbon targets.

Polluting industries are likely to pass a proportion of the costs onto consumers. While those with bigger household expenditures will pay more than those on lower incomes, the report underlines that government will need to identify ways of protecting vulnerable consumers and to decide where in relevant industry supply chains the costs should fall.

Chair of the National Infrastructure Commission, Sir John Armitt, said taking steps to clean our air is something we’re going to have to get used to, just as we already manage our wastewater and household refuse. 

"While engineered removals will not be everyone’s favourite device in the toolkit, they are there for the hardest jobs. And in the overall project of mitigating our impact on the planet for the sake of generations to come, we need every tool we can find," he said.

“But to get close to having the sector operating where and when we need it to, the government needs to get ahead of the game now. The adaptive approach to market building we recommend will create the best environment for emerging technologies to develop quickly and show their worth, avoiding the need for government to pick winners. We know from the dramatic fall in the cost of renewables that this approach works and we must apply the lessons learned to this novel, but necessary, technology.” 

The Intergovernmental Panel on Climate Change and International Energy Agency estimate a global capacity for engineered removals of 2,000 to 16,000 megatonnes of carbon dioxide each year by 2050 will be needed in order to meet global reduction targets. 

Yesterday Summit Carbon Solutions received "a strategic investment" from John Deere to advance a major CCUS project (click here). The project will accelerate decarbonisation efforts across the agriculture industry by enabling the production of low carbon ethanol, resulting in the production of more sustainable food, feed, and fuel. Summit Carbon Solutions has partnered with 31 biorefineries across the Midwest United States to capture and permanently sequester their CO2 emissions.  

Cory Reed, President, Agriculture & Turf Division of John Deere, said: "Carbon neutral ethanol would have a positive impact on the environment and bolster the long-term sustainability of the agriculture industry. The work Summit Carbon Solutions is doing will be critical in delivering on these goals."

McKinsey highlights a number of CCUS methods which can drive CO2 to net zero:

  • Today’s leader: Enhanced oil recovery Among CO2 uses by industry, enhanced oil recovery leads the field. It accounts for around 90 percent of all CO2 usage today
  • Cementing in CO2 for the ages New processes could lock up CO2 permanently in concrete, “storing” CO2 in buildings, sidewalks, or anywhere else concrete is used
  • Carbon neutral fuel for jets Technically, CO2 could be used to create virtually any type of fuel. Through a chemical reaction, CO2 captured from industry can be combined with hydrogen to create synthetic gasoline, jet fuel, and diesel
  • Capturing CO2 from ambient air - anywhere Direct air capture (DAC) could push CO2 emissions into negative territory in a big way
  • The biomass-energy cycle: CO2 neutral or even negative Bioenergy with carbon capture and storage relies on nature to remove CO2 from the atmosphere for use elsewhere

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