Elimini and HOFOR sign strategic agreements for Danish BECCS project
In Denmark, carbon removal company Elimini, a wholly owned subsidiary of UK-based Drax Group, has announced that it has signed a joint development agreement (JDA) with Greater Copenhagen’s public utility HOFOR A/S to explore the development of a large-scale bioenergy with carbon capture and storage (BECCS) facility at the Amagerværket combined heat and power (CHP) plant in Copenhagen.
According to a statement, the strategic collaboration will cover the development of the BECCS facility, aiming to enter into a Joint Venture Agreement (JDA) to transform Unit 4 (AMV4) at the site to capture carbon dioxide (CO2) and generate high-quality, verified carbon removal credits (CDRs) in addition to renewable electricity and heat.
By supporting the deployment of reliable renewable electricity and removing CO2 from the atmosphere, the partnership will play an important role in enabling Denmark to achieve its carbon removal and broader climate targets while stimulating both job creation and economic growth.
Major bioCO2 point source
The Amagerværket Power Station, which produces bioheat equivalent to 25 percent of Copenhagen’s district heating demand while generating 670 GWh of renewable electricity per annum, is one of Denmark’s largest point sources of biogenic carbon dioxide (bioCO2).
HOFOR has an established biomass supply chain to purchase certified sustainable wood pellets and woodchips.
The project aims to establish a full BECCS value chain with the capability to remove CO₂ from heat and power production at the facility, totaling hundreds of thousands of tonnes annually, supporting Copenhagen’s ambition of being climate positive by 2035.
Elimini is a development partner for the project in this first stage, using its expertise in BECCS to support HOFOR with the project and marketing for the carbon removal credits.
Pre-qualified for the Danish CCS subsidy scheme
The project is among 10 pre-qualified projects that are eligible for the Danish Energy Agency’s CCS subsidy scheme.
The Danish Government recognizes that the capture and storage of bioCO2 is an effective tool to fight climate change and key to achieving national and international climate ambitions.
To support Denmark’s goals, in 2024 the Danish Energy Agency established a US$4.2 billion CCS fund to support the development of capture, transportation, and geological storage of CO2 over 15 years.
In parallel, Elimini and HOFOR have agreed on a CDR marketing agreement under which Elimini will lead the commercialization pathway for the project’s verified carbon removal credits.
This ambitious partnership with HOFOR is a breakthrough in the scaling of carbon removals. Together, we’re developing a first-of-its-kind model that will capture biogenic carbon dioxide, reducing CO2 levels in the environment, and will generate verified, high-integrity carbon credits, said Ross McKenzie, Chief of Staff and SVP of Corporate Affairs and Business Development at Elimini.
Following further project evaluation, and subject to agreement by both Elimini and HOFOR, the parties will explore the potential formation of a joint venture.
This agreement represents a pivotal step to supporting Copenhagen’s target of being climate positive and decarbonizing the city’s district heating. By collaborating with Elimini on carbon capture at Amagerværket, we are building the technical and commercial foundations that will help to advance carbon capture solutions that benefit our city and the broader energy transition, said Gorm Elikofer, Chief Operating Officer at HOFOR.
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