Normod Carbon has announced plans to build a $294 million carbon dioxide (CO₂) hub at the Port of Grenaa, Denmark. This large-scale project will serve as a central facility for the collection, handling, and shipping of captured CO₂ from industries across Northern Europe.
Once completed, the hub could play a critical role in helping Denmark and the wider European Union (EU) reach their climate targets. Europe is shifting from planning to constructing key carbon capture and storage (CCS) infrastructure.
Normod Carbon is a Danish company that offers a transport and export hub. This helps industries store captured emissions underground or send them to offshore sites in the North Sea. The company’s projects also link to carbon markets, creating new opportunities for businesses to meet net-zero targets.
Why the Port of Grenaa?
The Port of Grenaa, located on Denmark’s east coast, is one of the country’s largest commercial ports. Its location on the Kattegat Strait is great for shipping routes in Northern Europe. It also connects easily to offshore CO₂ storage areas.
Normod Carbon chose Grenaa for several reasons:
- It already has a strong shipping and logistics infrastructure.
- It provides easy access to industrial regions in Denmark, Sweden, and Northern Germany.
- It can be a crucial link to offshore storage projects in the Danish North Sea. There, depleted oil and gas reservoirs are being readied for permanent CO₂ storage.
With these advantages, the Port of Grenaa could become one of the first major CO₂ export hubs in the Nordic region.
Inside the $294M CO₂ Hub Plan
The total investment of $294 million (about DKK 2 billion) will cover the design, construction, and operation of the hub. The facility will be able to handle several million tonnes of CO₂ per year, with potential for expansion as demand grows.
The project will unfold in phases:
- Phase 1 (mid-2020s): Construction of storage tanks, loading equipment, and initial pipeline connections.
- Phase 2 (late 2020s): Expansion to handle larger volumes and connect with more industrial emitters in Denmark and nearby countries.
- Phase 3 (2030 and beyond): Integration into a broader European CO₂ transport and storage network.
Normod Carbon aims for the hub to be fully operational by 2030. This aligns with Denmark’s goal to reduce greenhouse gas emissions by 70% from 1990 levels by that year.
Denmark’s Role in the European CCS Market
Denmark is positioning itself as a leader in carbon capture and storage. The country has committed to storing up to 13 million tonnes of CO₂ annually by 2030. Much of this will take place in the North Sea, where geological formations left by oil and gas production provide secure storage.
Several projects are already underway, including the Greensand project, which aims to inject CO₂ into a depleted oil field. The new Grenaa hub will complement these efforts by acting as a collection and export center.
The EU sees CCS as an essential tool for reaching net-zero emissions by 2050. The International Energy Agency (IEA) states that global CCS capacity needs to grow from 50 million tonnes a year to over 1.2 billion tonnes by 2030.
The IEA further says the world will need to capture about 7.6 billion tons of CO₂ each year by 2050 to reach net zero. This means the use of CCS must grow more than 100 times by 2050 to meet the IEA’s net-zero goals. Facilities like Grenaa are part of that scaling effort.
Why Heavy Industry Needs This Hub
The Grenaa hub is expected to bring economic benefits to the region. Construction and operation will create hundreds of jobs in engineering, logistics, and maintenance. Local industries will benefit from easier access to CO₂ handling services. This can help them stay competitive under Europe’s strict climate rules.
The EU Emissions Trading System (ETS), which sets a price on carbon emissions, has made it more expensive for companies to emit CO₂. In 2024, carbon prices averaged around €70–90 per tonne. By using CCS and hubs like Grenaa, industries can reduce their ETS costs and meet compliance targets.
Sectors such as cement, steel, and chemicals — known as hard-to-abate industries — stand to gain the most. These sectors face limited options for deep decarbonization, making CCS a critical pathway.
CCS and Carbon Credits: A Growing Connection
The Grenaa hub also connects directly to the fast-growing carbon credit market. When industries capture and store CO₂, they can generate credits that represent verified emissions reductions. These credits can then be sold or used to offset other emissions within the same company.
The global voluntary carbon market was valued at over $2 billion in 2024 and is expected to expand as more companies adopt net-zero targets. By linking CCS with carbon credits, projects like Grenaa can create new revenue streams while driving climate action.
For emitters, using CCS and trading credits provides both a compliance tool under the EU ETS and a way to show progress to investors and customers.
Climate Math: Can CCS Deliver?
From an environmental perspective, the hub could help reduce emissions that are otherwise difficult to eliminate. By 2030, it may handle millions of tonnes of CO₂ annually, equal to the emissions of hundreds of thousands of cars.
Denmark’s broader climate strategy also relies on balancing renewable energy growth with CCS. The country is already a leader in offshore wind power, generating more than 59.3% of its electricity from wind in 2024. However, wind and solar cannot fully eliminate emissions from heavy industries. This is where CCS infrastructure like Grenaa becomes essential.
Challenges Ahead
Despite its potential, the project faces challenges. CCS remains expensive, with capture and storage costs often exceeding €50–100 per tonne of CO₂. Securing long-term contracts with emitters will be key to making the hub financially viable.
Public perception is another factor. Some environmental groups argue that CCS could delay the phase-out of fossil fuels by offering a “license to pollute.” Normod Carbon and Danish authorities must demonstrate that the hub supports a shift to a low-carbon economy. It should not replace renewable energy.
Finally, technical hurdles such as ensuring safe transport, storage integrity, and large-scale infrastructure build-out must be addressed. Eventually, the success of Grenaa could serve as a model for other ports across Europe.
Grenaa as Europe’s Net-Zero Gateway
The Grenaa CO₂ hub represents a major investment in Europe’s climate future. Normod Carbon is investing $294 million to create the infrastructure for safe and efficient carbon transport.
As industries across Northern Europe face rising climate regulations and carbon costs, the hub offers a practical solution. It will connect emission sources to storage sites. This will boost Denmark’s CCS leadership and help the EU reach its 2050 net-zero goal.
If completed on schedule, the hub could become a central node in Europe’s emerging carbon management network. It reflects a broader trend of turning ports and industrial hubs into climate infrastructure, ensuring that heavy industries can transition while keeping economic activity alive.
