In August last year, the Danish Energy Agency prequalified three applicant companies out of a field of four applicants to apply for support from the first distribution of the CCUS (Carbon capture utilisation & storage) pool. However, that field has become even smaller in connection with the fact that the companies had a deadline to submit final and binding offers by the end of March. This is stated by the Danish Energy Agency in a press release.
Thus, Aalborg Portland has not submitted an offer by the deadline. The Danish Energy Agency must therefore make do with choosing between the two remaining bidders, which are I/S Vestforbrænding, which will capture CO2 from its incineration plant in Glostrup, and a collaboration between Ørsted Bioenergy & Thermal Power A/S, which will capture CO2 at the Avedøre and Asnæs power plants.
Despite the fact that one of the bidders has withdrawn by the final bid deadline, the Danish Energy Agency is satisfied with the process and that there is still competition. Furthermore, the agency praises all the companies for having "made a great effort to realise CCS in Denmark and entered into constructive negotiations." They will now start reviewing the submitted bids.
"The Danish Energy Agency is very satisfied that there has been competition throughout the tender. The Danish Energy Agency is now reading and evaluating the submitted bids and expects to enter into a contract during May," reads a statement from the agency.
Billions at stake
In the first round, 8.3 billion DKK of the 16 billion in total in the CCUS pool will be awarded. The pool aims to establish CO2 capture in Denmark from 2025 and realise CO2 reductions of 0.4 million tonnes annually from 2026. In the first phase of the CCUS pool, the funds will be used to contribute to the establishment of a comprehensive value chain for the capture, transport and storage of CO2.
The support is provided per reduced tonne of CO2 and will be adjusted for the development in CO2 taxes, including any negative taxes for negative emissions. Similarly, the development in the quota price will be included in determining the amount of support.
It is expected that the Danish Energy Agency's contract with the future winner of the tender will run for 20 years.
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