# Tender for Contract on subsidy for negative emissions carbon capture, transport and storage

- **Source:** TED · `164771-2024`
- **Buyer:** Energistyrelsen (Danish Energy Agency)
- **Published:** 2024-03-19
- **Deadline:** —
- **Estimated value:** —
- **CPV codes:** 90700000, 90720000
- **NUTS codes:** DNK
- **Notice type:** veat / 25

## Description

The Agreement on the Danish Financial Act for 2022 introduced a new market based subsidy fund (the “NECCS Fund”) to achieve negative CO2 emissions by permanently and geologically storing biogenic or atmospheric CO2 (NECCS). The total maximum available subsidy of the NECCS Fund is DKK 2,559,200,000 (2023-prices) excl. VAT. The fund is scheduled for disbursement between 2025-2032. The granting of subsidy under the NECCS Fund is encompassed by the European Commission’s Guidelines on State aid for climate, environmental protection and energy 2022. The designation of the Contract(s) as a service contract in the contract notice, section II.1.3), etc. does not change this. The competitive bidding process is conducted as an open procedure in accordance with the general principles of the Danish Public Procurement Act. With this notice, the DEA wishes to promote transparency regarding the changes and clarifications made to the tender documents in the open procedure and the DEA’s subsequent cancellation of the open procedure and transition to a negotiated procedure without publication of a new contract notice. On 24 August 2023 the DEA dispatched contract notice no. 2023/S 165-521925 (521925-2023), published 29 August 2023, concerning the NECCS subsidy scheme where the DEA wishes to enter into one or more contract(s) pursuant to which the recipient(s) of the subsidies (each recipient “the Operator”) shall ensure and be responsible for capturing, transportation and permanent, geological storage of biogenic or atmospheric CO2 (“the Contract”). The competitive bidding process is conducted as a procedure where all economic operators were invited to submit an offer, i.e. as an open procedure, and in accordance with the general principles of the Danish Public Procurement Act. Based on the communication with the European Commission regarding the aid scheme, questions from potential tenderers and the DEA’s decision, the DEA made changes to the tender documents in November 2023 prior to the deadline for submission of offers, which initially was on 1 December 2023. The DEA published the revised tender documents to all potential tenderers on the site in the electronic tendering system on 10 November 2023 and furthermore made the revised tender documents available on the DEA’s website stated in the contract notice. At the same time the DEA dispatched a notice for change of the contract notice (no. 692458-2023), published 15 November 2023. The DEA decided to extend the deadline for sub-mission of offers from 1 December 2023 to 15 January 2024. The postponement was partly due to a necessary update of the tender material and partly due to the EU Commission's state aid approval for the NECCS fund unexpectedly had not yet been granted. The changes and clarifications include for example that the amount of 50,200,000 originally allocated for 2024 was removed from the NECCS fund, inclusion of a subsidy reduction mechanism in Appendix 5, Subsidy and economy scheme, and clarifications in Appendix 3, Requirements specification, in cases where the performance of the contract is based on more than one carbon capture plant. After the deadline for submission of offers on 15 January 2024, the DEA assessed that all received offers received in the open procedure were non-compliant. This entailed that the DEA could not award and conclude Contract(s) based on the offers received in the open procedure. With the aim of ensuring the necessary basis for an early award of one or more Contract(s), the DEA cancelled the open procedure and proceeded to a negotiated procedure on 5 February 2024 in accordance with the Danish Public Procurement Act section 61(1), para 2, as only non-compliant offers had been submitted, see the Danish Public Procurement Act section 61(2), para 1. Reference is made to the DEA’s notice no. 79591-2024 published 7 February 2024 regarding the cancellation of the open procedure and transition to the negotiated procedure. The DEA made minor adjustments to Appendix B, Template for offer submission letter, to reflect the negotiated procedure.

## Award result

- **Winner:** BioCirc CO2 ApS (CVR 44479982), Bioman ApS (CVR 36433779), Carbon Capture Scotland Limited (CVR SC450861)

## Original notice

https://ted.europa.eu/da/notice/-/detail/164771-2024