The Danish energy company Ørsted is building a CCS plant at the woodchip-fuelled Asnæs power plant in Kalundborg and at the straw-fuelled unit of the Avedøre power plant in the Copenhagen area.
The US tech giant Microsoft will participate in the projects by purchasing CCS certificates. After Ørsted and Microsoft reached a contractual agreement last year on the purchase of certificates for the capture of 2.67 million tonnes of CO2 from the Asnæs power plant in 2023, an agreement with a term of 10 years for the purchase of certificates for 1 million tonnes from the Avedøre power plant has now been added. This brings the total amount contractually agreed between Ørsted and Microsoft to 3.67 million tonnes of CO2.
According to the Danish energy company, the collaboration between Ørsted and Microsoft will play an important role in the development of the “Ørsted Kalundborg CO2 Hub”, as bioenergy-based carbon capture and storage is still at an early stage.
“This expanded collaboration with Microsoft is a testament to our shared vision for a sustainable future. By combining Ørsted’s expertise in bioenergy carbon capture and storage with Microsoft’s commitment to reducing its carbon footprint, we’re showcasing how strategic relations can accelerate the transition to a greener economy,” said Ole Thomsen, Senior Vice President and Head of Bioenergy at Ørsted, welcoming the deal with Microsoft.
“The urgency around climate goals means translating great planning into rapid action – and Ørsted remains a valuable collaborator in bringing big ideas to life. Today’s announcement is yet another tangible step towards building the technologies and commercial capabilities towards becoming carbon-negative by 2030,” adds Brian Marrs, Senior Director of Energy & Carbon Removals at Microsoft.
Ørsted expects the CCS project “Ørsted Kalundborg CO2 Hub” to capture a total of 430,000 tonnes of biogenic CO2 per year in the future. Of this, 280,000 tonnes per year will be CO2 captured from the woodchip-fired unit at the Asnæs power plant. The remaining 150,000 tonnes of CO2 per year will be captured from the straw-fired unit at the Avedøre power plant. The captured CO2 is to be transported to a storage basin in the Norwegian part of the North Sea and stored there permanently. The “Ørsted Kalundborg CO2 Hub” is scheduled to go into operation at the beginning of 2026.
