Danish subsidy award unlocks major CCS project

Orsted places €200mn order with Aker Carbon Capture and seals large offtake deal with Microsoft as state aid opens way for CCS at bioenergy plants

The Danish government has awarded renewable energy company Orsted long-term state aid for carbon capture projects at two of its biomass-fired combined-heat-and-power plants, paving the way for the development of the country’s first full-scale CCS value chain. Orsted is set to sign a 20-year CCS support contract with the Danish Energy Agency (DEA) for its woodchip-fired Asnaes plant and its straw-fired Avedoere plant at the Kalundborg energy hub on the coast of Zealand, after winning a tender which opened in May 2022. The value of the subsidies was not disclosed. State aid will be paid out per tonne of CO₂ reduced, adjusted for fluctuations in CO₂ taxes and the EU emissions trading system pri