12 July 2023

EIFO provides risk coverage for Ørsted’s CCS project

image Photo: CCS rendering
The EUR 54 million contract guarantee is related to Ørsted’s contract with the Danish Energy Agency
The Export and Investment Fund of Denmark (EIFO) has recently issued a contract guarantee covering part of a contract between Ørsted and their main supplier Aker Carbon Capture (ACC), for the establishment of the first and largest carbon capture and storage (CCS) project in Denmark at the Asnæs Power Station and the Avedøre Power Station.
The EUR 54 million contract guarantee is related to Ørsted’s contract with the Danish Energy Agency (DEA) regarding capture and storage of 430,000 tonnes of biogenic CO2 annually from 2026.
Fits strategy
Ørsted’s project is in line with EIFO’s strategic ambitions regarding support and involvement in CCS which EIFO expects will play a crucial role in the green transition.
”EIFO aims to support a sustainable and green transition in Denmark as well as globally. CCS projects play a crucial role in this connection. This project is therefore the right match for EIFO, and we are really glad to be able to contribute with risk coverage”, says Peder Lundquist, CEO of EIFO.
EIFO will cover part of the credit risk related to Ørsted’s prepayments to the main supplier ACC. The total contract between Ørsted and ACC amounts to more than EUR 200 million.
Contributing to negative emissions in Denmark
The biogenic CO2 to be captured and stored will contribute to negative emissions in Denmark, thus helping to meet the goal of net zero CO2. The risk coverage was established after a close dialogue with ACC and their financial partners and commercially priced at market terms. 
ACC is a frontrunner within carbon capture technology. The project involves the delivery of 5 Just Catch™ units. The standardized Just Catch™-concept is a modular and configurable facility which enables production and deployment of carbon capture units.
In 2025, Asnæs Power Station and the Avedøre Power Station will start to capture and store biogenic CO2, and from 2026 onwards, the two power stations will capture and store approximately 430,000 tonnes of biogenic CO2 annually. The project will be the first step towards the establishment of a big scale CO2-infrastructure in Denmark. The Asnæs Power Station will not only serve as a hub for the capture and shipment of Ørsted’s own biogenic CO2 but will potentially also oversee shipment of CO2 produced by other emitters.  
EIFO’S first major CCS related guarantee 
”For quite some time, EIFO has been looking for opportunities to support the development of CCS in Denmark as well as abroad. We are therefore extremely pleased to announce our involvement in Ørsted’s ground-breaking CCS project in Denmark. The contract guarantee is EIFO’s first major CCS related guarantee, but we believe that CCS will provide EIFO with more opportunities”, says Andreas Thornit, First Vice President of EIFO.
”The green transition requires the use of many different tools and technologies. According to the UN’s Intergovernmental Panel on Climate Change (IPCC), capture and storage of biogenic CO2 is one of the tools for combating climate change. We are glad that with this guarantee, EIFO is helping to support the development of CCS in Denmark”, says Ole Thomsen, Senior Vice President, and Head of Ørsted’s Bioenergy business.