The applicants for a state fund of almost 30 billion kroner for CO2 capture are dropping out one by one. On Thursday, Aarhus Municipality announced that it is withdrawing the project to equip the incineration plant in Lisbjerg with equipment to capture CO2 from the plant's chimneys. The same was done by the municipal companies AffaldPlus and Argo. On Friday, Fjernvarme Fyn will follow suit.
- We have made a thorough assessment of Fjernvarme Fyn's options for applying for the state's CCS fund. But we can see that it is a bit too early to commit Fjernvarme Fyn to contracts that extend 20 years into the future, says Louise Høst, CEO of Fjernvarme Fyn, in a press release.
Industry organization: Too much risk for municipal utility companies
A total of six out of ten prequalified companies have withdrawn as applicants for the fund. This annoys Jens Bomann Christensen, director of Cirkulær, the trade association for municipal waste companies.
- We are annoyed that so many have dropped out. We do this because CO2 capture at waste-to-energy plants is a completely unavoidable part of achieving Denmark's goal of reducing emissions by 70 percent.
He believes that the tender conditions leave too much risk with the municipal utility companies.
- It is the owners of the plants, i.e. the municipalities, who will guarantee financially for some of these projects. It is ultimately the municipalities that have their hand on the stove in relation to the finances of these projects, he says.
Under the current tender conditions, the municipalities are not only responsible for capturing CO2 from the smoke. They will also be responsible for the subsequent transport and storage of CO2.
- The challenge is that they wanted those who have the chimneys to take responsibility for the whole thing. That hasn't made it any easier, says Jens Bomann Christensen.
He still sees CO2 capture as the "right way" to go and hopes for a new tender round with changed conditions.
- We don't have a position on how to put it together specifically at this time, but it's clear that we have to look at it, says Jens Bomann Christensen.
On Friday, the Danish Energy Agency announced that the deadline for submitting a final bid in connection with the pool has been moved from December 17, 2025 to January 7, 2026.
/ritzau/
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