REG-Ørsted A/S Ørsted to capture and store 400,000 tonnes of carbon in 2025

Oersted A/SAnnouncement

13/06/2022 07:15

============

   Ørsted A/S (Orsted)
   Ørsted to capture and store 400,000 tonnes of carbon in 2025

   13-Jun-2022 / 08:00 CET/CEST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   13.6.2022 08:00:01 CEST | Ørsted A/S | Investor News

   From 2025, Ørsted will be capturing and storing 400,000 tonnes of carbon a
   year. The capture potential is based on Ørsted’s newest straw- and wood
   chip-fired combined heat and power (CHP) plants.

   Ørsted is planning to establish carbon capture at its wood chip-fired
   Asnæs Power Station in Kalundborg on western Zealand and at the Avedøre
   Power Station’s straw-fired boiler in the Greater Copenhagen area. 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, Ørsted can be ready to capture and
   store 400,000 tonnes of carbon as early as 2025, which is also the
   objective of the political agreement on carbon capture and storage (CCS).

   “With carbon capture at the Asnæs and Avedøre CHP plants, we’ll be able to
   capture 400,000 tonnes of carbon from 2025, which can be stored in the
   North Sea. This will contribute significantly to realising the politically
   decided climate target for 2025,” says Ole Thomsen, Senior Vice President,
   Ørsted.

   Establishing carbon hubs

   The two CHP plants boast the best possible infrastructure, as they are
   linked to the grid and the district heating system and have their own
   harbours. Thus, they can act as hubs for the handling and shipping of both
   carbon and green fuels. Ørsted’s CHP plants will not only serve as hubs
   for the capture and shipping of its own carbon, but also for shipping
   carbon produced by other players. In Kalundborg, Ørsted 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.

   “Our carbon capture plans are based on our newest CHP plants which will be
   in operation for many years to come, and which run on sustainable straw
   and wood chips. The CHP plants are uniquely placed, as they have access to
   all the components which are needed for either capturing and shipping
   carbon or for using the carbon to produce green fuels, which can then be
   shipped from the CHP plants’ own harbours. And it’s already become evident
   how other companies with captured carbon can use our hubs as well.
   Kalundborg Refinery is the first potential partner, but there are several
   other players with carbon emissions where we also see a potential for
   collaboration,” says Ole Thomsen, adding:

   “The entire supply chain is already in place, so the first volumes can be
   shipped and stored from 2025.”

   Niels Bech, Director for Business Development at Kalundborg Refinery,
   says: “The potential CCS partnership with Ørsted fits well with Kalundborg
   Refinery’s ambitions for a green transition. With this project we will be
   able to reduce our 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.”

   Asnæs Power Station and Kalundborg Refinery will focus on carbon capture
   and storage, while the straw-fired boiler at Avedøre Power Station has
   been designated for capturing and delivering some of the carbon to the
   initial phases of the Power-to-X project ‘Green Fuels for Denmark’ where
   the ambition is to develop green fuels for the shipping and aviation
   industries. Consequently, the straw-fired boiler at Avedøre Power Station
   will be able to deliver carbon for storage and for Power-to-X and to
   function as a hub for other players with carbon emissions in the Greater
   Copenhagen area.

   Switching to primarily Danish biomass

   Ørsted’s carbon capture plans are concentrated on the newest CHP plants
   with many years of operation left. They are fuelled by sustainable straw
   and wood chips. Ørsted estimates that, in future, it will be possible to
   meet the need for sustainable biomass for the company’s CHP plants from
   straw and wood chips primarily from Denmark and neighbouring countries in
   the Baltic region. Therefore, Ørsted has decided to reduce the use of
   imported wood chips from 2030, as the existing wood chip-fired boilers
   reach the end of their service lives, and the process of increasing the
   proportion of Danish wood chips at the wood chip-fired power stations has
   already been initiated. From the mid-2030s, Ørsted expects to primarily
   use Danish biomass as fuel for its boilers.

   Biomass consumption in Denmark will decrease in line with the increasing
   electrification of heat generation. According to the Danish Energy Agency,
   Denmark will, however, continue to need a certain amount of sustainable
   biomass – in combination with heat pumps, electric boilers, and Power-to-X
   plants – to maintain the high level of reliability of supply that Danes
   are accustomed to. Therefore, it is necessary to maintain a supply chain
   of sustainable wood chips and straw.

   “Our forecasts show that we’ll basically be able to meet our needs for
   biomass with straw and wood chips from Denmark and, to some extent, from
   neighbouring countries in the Baltic region, as our wood chip-fired CHP
   plants reach the end of their service lives. We’ll still only source
   certified wood chips from production forests that supply materials for the
   wood and furniture industries because we need to ensure that our demand
   for Danish wood chips doesn’t result in less untouched forest in Denmark
   or have a negative impact on forest biodiversity,” says Ole Thomsen.

   Until the wood chip-fired CHP plants reach the end of their service lives,
   Ørsted will continue to only use certified wood chips that are produced
   from sawdust and other wood residues from sustainably managed forests.

   “Foreign wood pellets and wood chips are still a good and climate-friendly
   energy source when coming from certified sustainably managed forests.
   However, it makes a lot of sense to primarily use biomass from areas which
   are closer to home and thus get as close as possible to the supply chains
   to reduce the need for transport,” concludes Ole Thomsen.

   For further information, please contact:

   Media Relations
   Carsten Birkeland Kjær
   + 45 99 55 77 65
    1 cabkj@orsted.com

   Investor Relations
   Rasmus Keglberg Hærvig
   +45 99 55 90 95
    2 ir@orsted.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. Moreover, Ørsted provides energy
   products to its customers. Ørsted is the only energy company in the world
   with a science-based net-zero emissions target as validated by the Science
   Based Targets initiative (SBTi).  Ørsted ranks as the world’s most
   sustainable energy company in Corporate Knights’ 2022 index of the Global
   100 most sustainable corporations in the world, and is recognised on the
   CDP Climate Change A List as a global leader on climate action.
   Headquartered in Denmark, Ørsted employs 7,016 people. Ørsted’s shares are
   listed on Nasdaq Copenhagen (Orsted). In 2021, the company generated
   revenue of DKK 77.7 billion (EUR 10.4 billion). Visit  3 orsted.com or
   follow us on Facebook, LinkedIn, Instagram, and Twitter.

       Attachments

     •  4 Ørsted to capture and store 400,000 tonnes of carbon in 2025.pdf

   News Source: Ritzau

   ══════════════════════════════════════════════════════════════════════════

   ISIN:          DK0060094928
   Category Code: MSCM
   TIDM:          Orsted
   Sequence No.:  167662
   EQS News ID:   1373513


    
   End of Announcement EQS News Service

   ══════════════════════════════════════════════════════════════════════════

    5 fncls.ssp?fn=show_t_gif&application_id=1373513&application_name=news&site_id=reuters9

References

   Visible links
   1. mailto:cabkj@orsted.com
   2. mailto:ir@orsted.com
   3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=c17d04adc46793f4466471ea992e18f7&application_id=1373513&site_id=reuters9&application_name=news
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=1bd07d83b33228dc42539322428bedc6&application_id=1373513&site_id=reuters9&application_name=news


============