The third company in 24 hours has withdrawn from the battle for state funds in the CCS pool. This time it is AffaldPlus Affaldsenergi A/S, which has decided not to submit a bid for the Danish Energy Agency's CCS tender.
The reason is that the company assesses that the current framework conditions make it unrealistic to make a responsible decision within time and financial requirements. The company points out that the requirement for contract signing in April 2026 and full operation in 2030 creates unnecessary pressure, while significant guarantee requirements place responsibility on AffaldPlus' six owner municipalities: Faxe, Næstved, Ringsted, Slagelse, Sorø and Vordingborg. The company states this in a statement.
- The current framework conditions in the tender impose a significant financial responsibility on our owner municipalities, as they must provide major guarantees for a project that is both complex and high-risk. At the same time, the timetable is simply too tight. We have actively worked to adjust the tender to include more realistic terms and a timetable that reflects the complexity of the project. Unfortunately, this was not possible, and we must now act accordingly, says Stefan B. Andersen, Chairman of the Board of Directors of AffaldPlus.
AffaldPlus' planned CCS project was anchored in a partnership with European Energy and CarbonCuts, where European Energy's subsidiary Ammongas would provide CO2 capture and liquefaction technology, while CarbonCuts would be responsible for storage. The decision to pass on this round does not close the door to CO2 capture in the future, AffaldPlus states.
- Although we now choose not to participate in the CCS tender, the process has given us valuable insight and experience that strengthens our future work with CO2 capture. The knowledge and skills we have built up along the way provide a strong foundation for our continued development. In the new year, we will assess whether it is possible to realise a CCUS project in the future. As a company, we want greater flexibility in relation to market developments and will only consider investing in CO? capture when it is most responsible — both financially and technically, says Stefan B. Andersen.
AffaldPlus is far from the only municipal company that has chosen to drop the tender and pointed to the framework conditions as the reason. Thus, both ARGO and Kredsløb also announced on Thursday that they are not seeking funds in this round. Ørsted and the partnership Eon and Arc have also previously withdrawn from the race. This means that half of the ten prequalified bidders have chosen to refrain from bidding.
The CCS pool amounts to a total of DKK 28.7 billion, the deadline for binding offers is December 17, 2025, and contracts are expected to be awarded in April 2026.
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