The heat companies Centralkommunernes Transmissionsselskab I/S (CTR), VEKS and DONG Energy have concluded a new heat agreement for Unit 2 of the Avedøre power station for the period until 2027. The agreement will involve expansion of the power station’s Unit 2 to enable it to be 100% fuelled by wood pellets in future. The investment in the expansion will total almost DKK 100 million.
“The heat agreement that DONG Energy, CTR and VEKS have agreed on is good. The ability to expand our capacity to burn wood pellets is a key element of DONG Energy’s strategy concerning renewable electricity and heat generation. This will allow us to reduce our CO2 emissions,” says Thomas Dalsgaard, Executive Vice President of DONG Energy.
The biomass-based heat agreement ties in well with the ambitions of the heat companies VEKS and CTR to increase the share of biomass-based heat to the Greater Copenhagen area.
“The transition to more green heat from the Avedøre power station will probably reduce CO2 emissions from the heat supply in the capital by just over 10% a year from 2015. This will provide a sound contribution to CTR’s objective to supply CO2-neutral heat to its owner municipalities in 2025, and to Copenhagen becoming the world’s first CO2-neutral capital," says Ayfer Baykal (Socialist People’s Party), Chairman of CTR’s Board of Directors.
“We have a clear wish to be able to supply green heat to the district heat customers in VEKS’ 12 stakeholder municipalities. But it is also essential for the green heat to be able to compete with individual heating based on natural gas or oil. If not, we will not be able to pursue the national climate and energy policy objectives to convert natural gas customers to district heat. The new heat agreement with DONG Energy is an important step in the right direction,” says Lars Gullev, CEO of VEKS.
The expansion of Unit 2 of the Avedøre power station comprises a new fuel mill and additional capacity for transporting wood pellets from the port to the storage facilities at the Avedøre power station. The expansion will be executed outside the heat seasons in 2013 and 2014 so that the converted Avedøre power station is operational from 1 October 2014.
The information provided in this announcement does not change DONG Energy’s previous financial guidance for the 2013 financial year or the announced expected investment level for 2013-2014.
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Allan Bødskov Andersen
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DONG Energy is one of the leading energy groups in Northern Europe. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. DONG Energy has 7,000 employees and is headquartered in Denmark. The Group generated DKK 67 billion (EUR 9.0 billion) in revenue in 2012. For further information, see www.dongenergy.com