Vestforbrænding and Copenhagen Infrastructure Partners (CIP) have decided, through their joint company Gaia, not to submit a bid in the upcoming tender for carbon capture and storage (CCS). According to the parties, carbon capture is both possible and necessary, but the current framework makes it difficult to create a sustainable economy in the project. Vestforbrænding states this in a press release.
Vestforbrænding is one of the country's largest emitters with around 500,000 tons of CO2 per year. Director Steen Neuchs Vedel describes the decision as regrettable but necessary.
- Carbon capture is possible, and we have a value chain that we believe in. But with the current framework in the tender, we cannot make the economy stick. Prices have risen in our society, and our project is no exception. That is why we cannot bid, says Steen Neuchs Vedel, CEO of Vestforbrænding.
The Gaia project has been among Denmark's most advanced initiatives within CO2 capture and storage. A long-term agreement has been entered into with Microsoft on the sale of CO2 credits and final contracts for transport and storage have been negotiated.
The project has also obtained EIA approval and carried out technical feasibility studies, but despite its maturity, the parties have chosen to refrain from bidding under the current terms.
Vestforbrænding and CIP are far from the only ones who have not seen the light in the terms that the Danish authorities have set for obtaining the subsidy. Thus, a total of eight of the ten prequalified projects have now dropped out of applying for the state's CCS pool of DKK 28.7 billion. With the Gaia project, a maximum CO2 reduction of 1.6 million tons can be achieved. The goal of the pool was a reduction of 2.3 million tons. The two projects that are still in the running to apply for the funds are Aalborg Portland and Energnist. The deadline for applying for the pool has recently been postponed to January 7.
Vestforbrænding and CIP continue to expect to enter into dialogue with the authorities about possible adjustments to the framework for a future tender.
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