REG-Ørsted A/S Ørsted awarded contract – will capture and store 430,000 tonnes of biogenic CO2

Oersted A/SAnnouncement

15/05/2023 09:15

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   Ørsted A/S (Orsted)
   Ørsted awarded contract – will capture and store 430,000 tonnes of
   biogenic CO2

   15-May-2023 / 10:08 CET/CEST

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   15.5.2023 10:07:53 CEST | Ørsted A/S | Investor News

   The Danish Energy Agency (DEA) has awarded Ørsted a 20-year contract for
   its carbon capture and storage (CCS) project ‘Ørsted Kalundborg Hub’. The
   project entails that Ørsted will establish carbon capture at its wood
   chip-fired Asnæs Power Station in Kalundborg in western Zealand and at the
   Avedøre Power Station’s straw-fired boiler in the Greater Copenhagen area.

   “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. According to the UN’s Intergovernmental
   Panel on Climate Change (IPCC), capture and storage of biogenic CO 2  is
   one of the tools we must use to fight climate change, and our CCS project
   will contribute significantly to realising the politically decided Danish
   climate targets for 2025 and 2030,” says Ole Thomsen, Senior Vice
   President and Head of Ørsted’s Bioenergy business.

   During 2025, the Asnæs and Avedøre combined heat and power plants will
   begin to capture and store biogenic carbon, and at the beginning of 2026,
   the two units will capture and store approx. 430,000 tonnes of biogenic
   CO 2  every year. The realisation of the project will be the first step in
   establishing a large-scale CO 2  infrastructure across Denmark as the
   Asnæs Power Station will not only serve as hub for the capture and
   shipping of Ørsted’s own biogenic CO 2 , but potentially also for shipping
   CO 2  produced by other emitters.

   Ørsted has teamed up with Aker Carbon Capture, the Norwegian frontrunner
   in carbon capture technology and developer of a field-proven and
   proprietary carbon capture technology. As carbon capture provider, Aker
   Carbon Capture will deliver five Just Catch™ units to the CHP plants. The
   Just Catch™ standardised concept is a modular and configurable offering,
   which enables efficient production and deployment of carbon capture units.

   “We’re proud of our partnership with Ørsted and see this project as a
   milestone for our standardised Just Catch offering to the mid-scale
   emitter market. We look forward to working with Ørsted and to contributing
   to their decarbonisation journey and to Denmark’s CCUS ambitions," said
   Valborg Lundegaard, CEO at Aker Carbon Capture.

   The 430,000 tonnes of biogenic CO 2  from the Asnæs and Avedøre combined
   heat and power stations will be shipped to the Northern Lights storage
   reservoir in the Norwegian part of the North Sea. Ørsted has entered a
   contract with Northern Lights, who is developing a CO 2  transport and
   storage infrastructure. Phase one of the Northern Lights project will be
   completed in 2024 and is the most mature carbon storage site in the North
   Sea.

   “We’re very pleased that Ørsted has selected Northern Lights as CO 2 
   storage provider. This agreement confirms the commercial potential for CCS
   and demonstrates that the market for transport and storage of CO 2  is
   evolving rapidly,” says Børre Jacobsen, Managing Director of Northern
   Lights.

   By capturing the biogenic carbon from biomass-fired combined heat and
   power plants and storing it underground, it is possible to not only
   reduce, but also remove CO 2  from the atmosphere, as biogenic carbon from
   sustainable biomass is part of a natural biogenic carbon cycle. Thereby,
   you create negative emissions.

   Carbon removal

   In March 2021, Ørsted, Aker Carbon Capture, and Microsoft  1 signed an
   agreement to, among other things, drive forward the process of reaching
   actual operation of a commercial and technical setup that combines carbon
   capture and clean energy production via biomass-fired combined heat and
   power plants.

   In direct support of this new project, Microsoft has agreed to purchase
   2.76 million tonnes of high-quality, durable carbon removal over 11 years
   from the capture and storage of biogenic carbon from the Asnæs Power
   Station. This represents one of the world’s largest carbon removal offtake
   agreements by volume, to date.

   "Our landmark long-term agreement with Ørsted for high-quality carbon
   removal supports Microsoft’s commitment to become carbon-negative by 2030,
   sends a strong demand signal to scale the market, and showcases the power
   of partnership and the technological innovation needed to help the world
   make the clean energy transition,” said Melanie Nakagawa, Chief
   Sustainability Officer at Microsoft.

   The agreement between Ørsted and Microsoft also demonstrates the
   commercial value associated with carbon capture and removal. Given the
   nascent state of bioenergy-based CCS, Danish state subsidies and
   Microsoft’s contract were both necessary to make this project viable.

   This partnership demonstrates how decarbonised solutions can mature and
   scale when offtakers, operators, technology providers, and policy makers
   collaborate closely. By creating a commercial setup of negative emissions
   that provides transparency and lowers the cost and time to market for
   carbon offsets, CCS can move from relying on subsidies to operating on
   market terms. This is similar to the development of other renewable energy
   solutions, such as solar PV and wind energy.

   Surplus heat

   The carbon capture process will be heat-integrated with the combined heat
   and power plants, enabling district heating to be supplied both in
   Kalundborg and the Greater Copenhagen area.

   The carbon capture process at Avedøre Power Station’s straw-fired boiler
   has the potential to regenerate approximately 35 MW of surplus heat, and
   the carbon capture process at Asnæs Power Station has the potential to
   regenerate approximately 50 MW of surplus heat, corresponding to the
   annual district heating consumption of approx. 11,000 and 20,000 Danish
   households, respectively.

   The tender procedure is fully completed when the contract has been signed
   by Ørsted and the DEA. Signing is expected to take place shortly after
   expiry of the mandatory standstill period. Ørsted expects to begin the
   construction of carbon capture units at Asnæs and Avedøre combined heat
   and power stations in June 2023.

   Facts about ‘Ørsted Kalundborg Hub’:

     • Ørsted will establish carbon capture at its wood chip-fired Asnæs
       Power Station in Kalundborg in western Zealand and at the Avedøre
       Power Station’s straw-fired boiler in the Greater Copenhagen area.
     • Ørsted will capture 150,000 tonnes of biogenic CO 2  per year from the
       straw-fired unit at Avedøre Power Station. The CO 2  will initially be
       transported by lorry to Asnæs Power Station until a shared pipeline
       infrastructure across Zealand has been established.
     • The straw-fired unit at Avedøre Power Station converts approximately
       145,000 tonnes of locally sourced straw into electricity and district
       heating annually. The straw is a by-product of agriculture.
     • Ørsted will capture 280,000 tonnes of biogenic CO 2  per year from the
       wood chip-fired unit at Asnæs Power Station, which will also function
       as a CO 2  hub, handling and shipping biogenic carbon from both the
       Avedøre and Asnæs combined heat and power stations to the Northern
       Lights storage reservoir in the Norwegian part of the North Sea.
     • The wood chip-fired unit at Asnæs Power Station converts approximately
       380,000 tonnes of wood chips from primarily the Baltics into
       electricity, district heating, and process steam for the local
       industry. The wood chips come from sustainably managed production
       forests and consists of residues from trimming or crooked trees.
     • The wood chip-fired unit at Asnæs Power Station works in interaction
       with Asnæs Power Station’s electric boiler and Kalundborg Utility's
       heat pump. Thus, green power is utilised when it is available at
       competitive prices, while wood chips from sustainably managed forests
       ensure that Kalundborg's need for process steam for the industry,
       district heating for homes, and power for Denmark is covered
       completely without the use of fossil fuels.

   For further information, please contact:

   Ørsted Media Relations
   Michael Korsgaard
   +45 99 55 94 25
    2 mikon@orsted.com

   Ørsted Investor Relations
   Rasmus Keglberg Hærvig
   +45 99 55 90 95
    3 ir@orsted.com

   Aker Carbon Capture Media Relations
   Yannick Vanderveeren, Head of Communications
   +47 458 36 358
    4 Yannick.vanderveeren@akercarboncapture.com  

   Microsoft Media Relations
   Morten Skøtt
   +45 29 22 97 60
    5 moskott@microsoft.com

   Northern Lights Media Relations
   Ingrid Vervik Salte
   +47 917 55 228
    6 media@norlights.com

   About Ørsted
   The Ørsted vision is a world that runs entirely on green energy. Ørsted
   develops, constructs, and operates offshore and onshore wind farms, solar
   farms, energy storage facilities, renewable hydrogen and green fuels
   facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate
   Change A List as a global leader on climate action and was the first
   energy company in the world to have its science-based net-zero emissions
   target validated by the Science Based Targets initiative (SBTi).
   Headquartered in Denmark, Ørsted employs approx. 8,000 people. Ørsted's
   shares are listed on Nasdaq Copenhagen (Orsted). In 2022, the group's
   revenue was DKK 132.3 billion (EUR 17.8 billion). Visit  7 orsted.com or
   follow us on Facebook, LinkedIn, Instagram, and Twitter.

       Attachments

     •  8 CCS tender_EN.pdf

   News Source: Ritzau

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          DK0060094928
   Category Code: MSCM
   TIDM:          Orsted
   Sequence No.:  243754
   EQS News ID:   1633041


    
   End of Announcement EQS News Service

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