Energy company Ørsted and engineering, procurement and construction contractor MT Group have signed a contract for a new carbon capture and storage (CCS) facility in Denmark.
MT Group will install balance of plant piping and equipment for the Ørsted Kalundborg CO₂ Hub.
It will also test and finalise the piping’s design and integrate it with an existing woodchip-fired boiler plant and the new CCS facility.
The project is part of Ørsted's 20-year agreement with the Danish Energy Agency (DEA), which aims to capture and store 430,000tpa of CO₂ from two Ørsted power stations – the Asnæs power plant in Kalundborg and the Avedøre power plant in the Copenhagen area.
The captured CO₂ will be transported to the Northern Lights CCS development in Norway for geological storage. This is Norway’s first licence for CO₂ storage on the Norwegian Continental Shelf, co-owned by Equinor, Shell and TotalEnergies.
MT Group CEO Mindaugas Zakaras commented: "The signing of this contract is a strong testament to our commitment to driving the renewable energy transition across Europe.”
At the end of August, Ørsted closed its final coal-fired heat and power plant in Denmark, making its energy generation almost entirely fossil fuel-free.
In June, the DEA launched a CCS Fund with a total budget of Dkr28.3bn ($2.6bn), allocated annually from 2029 to 2044. The DEA expects to publish the tender material in October 2024 and award contracts in April 2026 following a prequalification and negotiation round.
According to the DEA’s analysis, the full capture potential from all Danish point sources is 6.9–13.7m tonnes of CO₂ by 2030. The country has six permits for exploration with the aim of CO₂ storage.
Denmark is targeting climate neutrality by 2050 and a 70% reduction in greenhouse gas emissions in 2030 compared with 1990 levels.
