Orsted bids Danish biomass-fired cogeneration plants into carbon capture tender
In June, the Danish Energy Agency reissued a tender for carbon capture, use and storage backed by DKK 16 billion ($2.26 billion) of state support. Applications to pre-qualify for the competition must be in by July 7.
Orsted said its CCS plan involved its wood chip-fired Asnæs plant in Kalundborg on western Zealand and its Avedøre power station's straw-fired boiler in the Greater Copenhagen area. Captured carbon would be stored under the North Sea or used for green fuels.
"The technology and logistics for handling and storing carbon from the two CHP plants are in place, and if financial support is obtained from the current tender for carbon capture and storage, Orsted can be ready to capture and store 400,000 tonnes of carbon as early as 2025," it said.
Both linked to the power grid and the district heating system and with their own harbours, the cogeneration plants "can act as hubs for the handling and shipping of both carbon and green fuels," Orsted said, including the shipping of carbon produced by others.
"In Kalundborg, Orsted is, amongst others, in dialogue with Kalundborg Refinery about the possibility of capturing carbon from the oil refinery and piping it to Asnæs Power Station, before sailing it away for storage," it said.
Niels Bech, director for business development at Kalundborg Refinery, said the project would enable the refiner to reduce its CO2-emissions "significantly already in 2025, and we look forward to collaborating on CCS and thereby contributing to this technology being developed on a commercial scale for the benefit of Danish companies and the climate."
Orsted said the Asnæs project would focus on carbon capture and storage, carbon shipped to subsea stores in the North Sea, while the straw-fired boiler at Avedøre would capture and deliver some CO2 to the Green Fuels for Denmark Power-to-X project.
Green Fuels for Denmark, led by Orsted, SAS, Copenhagen Airports, AP Moller – Maersk, DFDS and DSV, plans to have 100 MW of electrolysis in operation in 2025, producing over 50,000 tonnes per year of sustainable fuel, mainly e-methanol for shipping.
E-methanol is produced by combining renewable hydrogen and captured carbon dioxide from industrial sources.
Subsequent phases would see electrolysis capacity rising to 250 MW in 2027 and 1,300 MW in 2030, in part to produce green jet fuel. The project been selected by Denmark to participate in the IPCEI pan-European hydrogen project programme.