Vattenfall AB’s carbon storage plans have suffered a blow following the Danish government refusal of the Swedish utility’s application to store carbon dioxide in the Vedsted structure northwest of Aalborg, reports Bloomberg.

According to a letter from Denmark’s Climate and Energy minister Martin Lidegaard, the department will await the outcome of carbon capture and storage projects in other countries before approving the process for use in Denmark.

The decision follows Denmark’s new government committing itself to one of the most ambitious energy reform strategy to reduce reliance on fossil fuels and drastically cut its emissions of greenhouse gases.

According to the government’s policy book, A Denmark That Stands Together, this Scandinavian nation, which has a population of 5.6 million, aims to reduce its greenhouse gas emissions by 2020 compared to 1990 levels by 40 per cent. It plans to invest heavily in wind power and reforming transport.

Lidegaard says he hopes to legislation will be passed before the year’s end setting the agenda and establishing the long-term parameters to encourage both public and private investment in a new industrial green revolution.

According to estimates from Concito, a green think tank, 40bn kroner (US$7.4bn) in investment will be needed to produce 50 per cent of electricity generation from wind power by 2020.

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