Ørsted Bioenergy & Thermal Power was awarded a 20-year contract by the Danish Energy Agency for Denmark’s first major carbon capture project.
The carbon capture and storage (CCS) project called the Ørsted Kalundborg Hub project is expected to capture and store 430,000 metric tons of carbon dioxide emissions per annum once it becomes operational in 2026.
As per the contract, Ørsted will be responsible for building a carbon capture facility at its wood chip-fired Asnæs Power Station on Denmark’s most populous island Zealand, and one at the Avedøre Power Station’s straw-fired boiler near Copenhagen.
The emissions captured from the latter location (some 150,000 tons of CO2 per year) will be transported to the Asnæs Power Station until a dedicated pipeline infrastructure is set up across Zealand.
In turn, the Asnæs Power Station will be equipped with carbon capture technology that will prevent 280,000 tons of biogenic CO2 from entering the atmosphere each year and will also double as a carbon capture hub, where biogenic carbon will be handled and shipped from both power stations and potentially other emitters as well to the Northern Lights storage reservoir in the North Sea.
What’s more, this week Ørsted also announced its agreement with Microsoft for the purchase of 2.76 million metric tons of carbon removal, marking one of the largest deals of its kind to date.
As per the agreement, Ørsted will capture and store biogenic CO2 emissions over an 11-year period.
Senior Vice President and Head of Ørsted’s Bioenergy business, Ole Thomsen expressed his enthusiasm for the project by saying: “We’re incredibly pleased with the outcome of the tender process, and we look forward to initiating the work of establishing a carbon capture facility at two of our combined heat and power plants running on sustainable straw and wood chips.”
Aker Carbon Capture is also part of the planned CCS project and will deliver five Just Catch units, along with other equipment, such as temporary storage facilities and liquefaction systems.