The Danish Energy Agency has just announced that Ørsted has won the first Danish tender for the capture, transport and storage of CO2. Ørsted will thus capture and store a minimum of 430,000 tonnes of CO2 per year for 20 years from 2026 with support from the approximately eight billion DKK CCUS fund. The decision on the tender has caused joy in the industry organisation Danish District Heating.
- Congratulations to Ørsted on being awarded the state support fund for CCUS. In many ways, it is a big day for the development of CCUS in Denmark, where names are now being put on who, as some of the first, will be responsible for establishing an entire value chain for capturing, transporting and storing CO2, says Jannick Hauschildt Buhl, Area Manager for CCUS and PtX at Danish District Heating.
With the help of the pool, Ørsted will ensure large CO2 reductions towards Denmark's climate goals by capturing CO2 from the Asnæs plant near Kalundborg and the Avedøre plant outside Copenhagen. The plant will be started up in 2025 and will deliver CO2 reductions from 2026.
- Ørsted operates vital cogeneration plants in Denmark, and Asnæs plant and Avedøre plant are two efficient cogeneration plants at certified sustainable wood chips and straw, both of which have a long lifespan and play a significant role in the heat supply in Kalundborg and Copenhagen as well as in the security of electricity supply in Denmark. Through the capture and storage of CO2 from sustainable biomass, Ørsted will now ensure a minimum of 430,000 tons of negative emissions and thus make a major contribution to Denmark's climate goals.
Great Danish potential
In the long term, CCUS can become both a major business adventure and make a very large contribution to achieving Denmark's climate goals. This is especially true in the district heating sector, where there is a total potential for capturing CO2 of up to 7 million tons of CO2 per year according to a CCUS proposal from Dansk Fjernvarme. Therefore, the organization wants politicians to raise their ambitions.
- Now that the first CCUS tender has been decided, it will be exciting to follow the establishment of Ørsted's projects. But authorities and politicians will not have time to sit on their hands if we are to achieve Denmark's ambitious 2030 target, where according to the political agreements approximately 3.2 million tons of CO2 per year must be captured in 2030, says Jannick Hauschildt Buhl and concludes:
- There is a lot to learn from the first CCUS tender. If we are to accelerate development, a simpler implementation model is needed, which removes a large portion of the risk from the bidders.
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