On Tuesday, the Danish Energy Agency awarded Aalborg Portland a contract to capture and store 1.25 million tons of CO2 annually from 2030 out of a pool of DKK 28.7 billion. However, Danish District Heating points out that interest in the sector has been much greater, and that the outcome therefore leaves untapped potential.
Therefore, the industry organization is dissatisfied with the outcome of the state's CCS pool. Especially the fact that only one project has received a subsidy. According to Danish District Heating, the result does not meet the ambitions in the energy sector and may have consequences for Denmark's climate goals. This is stated by Dansk Fjernvarme in a press release.
- It is a pity that the district heating sector will not be able to deliver further reductions to the 2030 target using CO? capture. There is a huge potential for capture in the sector, which was also shown by the fact that 9 out of 10 prequalified players came from the district heating sector. The ambitions and wishes are there, so it is a loss for Denmark that they will not be fulfilled this time. Because if Denmark is to achieve climate goals and climate neutrality, CCS must be established in the district heating sector, says Kim Mortensen, director of Dansk Fjernvarme.
Hope for thorough evaluation of tender
Up until the deadline, only two out of ten prequalified bidders ended up submitting a final bid to the Danish Energy Agency.
- This development should lead to a thorough evaluation so that CO2 capture at waste-to-energy and cogeneration plants based on biomass can contribute to CO2 reductions in the future, believes Jannick H. Buhl, area manager for CCUS at Danish District Heating.
Danish District Heating therefore calls for rapid clarification on additional financing and an overall strategy for CCS, so that more projects can be realized in time to support both the 2030 and 2035 targets.
- It is positive that a contract has been signed for one project after all - especially with onshore storage in Denmark. Hopefully, this can help drive development and pave the way for future projects. But the result of the tender means that it will be more difficult to achieve Denmark's 2030 target. Therefore, it is necessary to quickly initiate a process so that unnecessary time is not wasted in relation to being able to deliver in good time before the climate target for 2035, says Jannick H. Buhl.
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