Vestforbrænding proud to be prequalified Just a few days after Vestforbrænding had been selected to participate in the large national tender for CO2 capture, an LOI (Letter Of Intent) was signed with the gas distributor Evida (owned by the Danish state) and Gas Storage Denmark (GSD). The three players will create an integrated solution for CO2 capture, where the captured CO2 will be stored in GSD's gas storage in Stenlille in Zealand, Denmark. The parties can thus secure the entire value chain in one integrated solution - from capture to transport and storage.
The operator must ensure CO2 reductions corresponding to at least 0.4 million tons/year - collected and permanently stored from and including the year 2026. The operator can deliver the reductions with one point source, a combination of point sources, or a portfolio of several point sources. The contract is expected to have a duration of approx. 21 years of operation. The grant is paid per ton of CO2 documented, collected, and stored permanently. Result of prequalification round At the beginning of August 2022, the Danish Energy Agency announced which applicants had been pre-qualified to bid for the CCUS pool, which aims to establish large-scale CO2 capture in Denmark from 2025 and realize CO2 reductions of 0.4 mil- lion tons annually from 2026. The Danish Energy Agency received four complete applica- tions, three of which were approved to submit bids and par- ticipate in the upcoming tender negotiations. It has been a requirement in the prequalification round that the potential grant recipients had sufficient financial and technical capacity to deliver the expected reductions in an environmentally and safety-responsible manner.
In connection with the signing of the LOI, the CEO of Vestfor- brænding, Steen Neuchs Vedel, stated:
- It is a great achievement, where we clearly demonstrate that we are able to work together swiftly for an important cause. We now stand shoulder-to-shoulder in finding a solution to handle the entire value chain. When we have dived deeper into con- solidating our project, well we present it to the public. Vestforbrænding aims to transport the captured CO2 via pipes to Stenlille in Zealand, where GSD has a large underground storage facility. - It is an enormously exciting project, that we are pleased to be a part of. This supports our ambition to show how Denmark can utilize its underground to store vast amounts of CO2 in a safe and economic way, said Adam Elbæk, CEO of Gas Storage Denmark, on the same occasion Evida has a lot of experience with large construction projects and is looking forward to collaborating on a pipeline from Vest- forbrænding in Glostrup to Stenlille. - Piped infrastructure for transporting the green gases of the future can become an essential part of the overall solution for CO2 capture and storage. We are therefore very much looking forward to contributing our knowledge and experience in the
The pre-qualified bidders were: Vestforbrænding
Ørsted Bioenergy & Thermal Power A/S
Aalborg Portland
Vestforbrænding has thus been selected to participate in the tender to allocate subsidies from the state CCSU pool of 8.168 billion DKK. The Danish Energy Agency will carry out the tender in 2022, and the winner of the tender is expected to be announced in early 2023.
Facts about the CCUS pool:
Facts about CCS:
The CCUS pool aims to establish CO2 capture in Denmark from 2025 and realize CO2 reductions of 0.4 million tonnes annually from 2026. In the first phase of the CCUS pool, the funds are dis- bursed to contribute to establishing an integrated value chain for capturing, transporting, and storing CO2. The support is given per reduced tonnes of CO2 and will be adjusted for the development in CO2 taxes - including any negative taxes for negative emissions.
Capture and storage of CO2 or Carbon Capture and Storage (CCS) works by capturing CO2 and depositing it underground. CCS can capture CO2 from large point sources, such as facilities with fossil emissions (such as waste-to-energy plants) or CO2 emissions from burning biomass, large CO2-emitting industries, and CO2 from biogas plants.
In December 2021, the Danish parliament entered into a political agreement on CCS.
Correspondingly, the development in the CO2 quota price will be included in determining the amount of support.
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