• INEOS’s Greensand project will initially store up to 400,000 tonnes of carbon dioxide each year beneath the Danish North Sea.
• The project is designed to reach annual capacity of 4 million to 8 million tonnes, offering a new decarbonisation route for European industry.
• Its launch gives the EU its first full-scale carbon storage operation, while testing the commercial case for cross-border carbon infrastructure.

Denmark opens a new route for industrial emissions

The European Union’s first full-scale carbon dioxide storage project is due to begin operating on Friday, according to INEOS.

The British company’s Greensand project will transport captured emissions from Danish biomethane plants to a depleted oil field beneath the North Sea. Its opening moves carbon capture and storage from demonstration projects into commercial-scale operations within the EU.

Greensand can store up to 400,000 tonnes of CO2 annually during its first phase. INEOS said the system is designed to expand to between 4 million and 8 million tonnes a year at full capacity.

That growth would make the project a significant component of Europe’s emerging carbon management network. It could also provide an emissions solution for industrial sectors where electrification remains costly or technically difficult.

From biomethane plants to the seabed

CO2 captured at Danish biomethane plants will be liquefied and transported by truck to the Port of Esbjerg. From there, ships will carry it roughly 250 kilometres offshore to the Nini West field.

The carbon dioxide will then be injected into geological formations about 1,800 metres beneath the seabed. The site previously produced oil, giving project developers access to existing geological data and offshore expertise.

The logistics chain highlights both the potential and complexity of carbon storage. Capture, liquefaction, road transport, shipping and injection must operate as a connected system. Each stage also requires reliable measurement and clear responsibility for emissions handling.

For governments, these controls will be central to public confidence. Regulators will need to ensure that stored CO2 remains contained and that claimed emissions reductions are accurately recorded.

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Industrial policy meets climate policy

European policymakers increasingly view carbon storage as part of the region’s industrial strategy. The technology offers heavy industry a path to reduce emissions without immediately relocating production or retiring valuable assets.

“We set out a path for European industries: to continue their transition to a low-carbon future, while maintaining production, investments, and employment in our continent. And we open a new front in the existential fight against climate change,” European Commissioner for Energy and Housing Dan Jorgensen said in the statement.

His comments place Greensand within a wider political debate. Europe must cut emissions while protecting industrial competitiveness, employment and investment. High energy costs and competition for clean technology capital have made that balance more urgent.

The project also extends the productive life of offshore expertise developed by the oil and gas sector. Depleted fields, specialist vessels and subsurface engineering skills can be redirected towards carbon management.

The commercial test now begins

For executives and investors, Greensand’s first phase will provide evidence on operating costs, infrastructure reliability and demand for storage capacity. Its expansion will depend on sufficient volumes of captured CO2 and contracts that can support long-term investment.

Policy will remain decisive. Carbon prices, public funding, permitting rules and liability frameworks will shape the economics of future projects. Companies will also need credible accounting standards to ensure stored emissions support climate targets without enabling weak transition plans.

Norway’s Northern Lights project began storing CO2 in August 2025. However, Norway is not an EU member, making Greensand the bloc’s first full-scale storage operation.

The distinction matters for European climate governance. Greensand will show whether EU rules can support an integrated carbon storage market at industrial scale. Its performance could influence future projects across the North Sea and beyond, as governments weigh carbon storage against cost, risk and the need for faster emissions cuts.