DONG Energy divests its last waste-fired CHP plant

DONG Energy has entered into an agreement to divest its waste-fired Måbjerg combined heat and power (CHP) plant near Holstebro to the Danish utility companies Struer Forsyning Fjernvarme and Vestforsyning Varme.

Thomas Dalsgaard, executive VP of DONG Energy Thermal Power, says: 'The divestment is part of our strategy to focus on the central power stations in Denmark. With the agreement concerning the Måbjerg CHP plant, we're divesting our last local CHP plant.'

In 2011, DONG Energy decided to focus on its large central power stations and since then has divested eight local biomass- and gas-fired power stations as well as six waste-fired CHP plants.

Dalsgaard continues: 'We're in the process of converting a number of our central power stations to using wood pellets and woodchips as fuel instead of coal and gas so that they contribute to Denmark's green conversion. This is our core competence and what we should concentrate our efforts on. Our target is that at least half of the electricity and heat generated at our power stations must originate from biomass in 2020.'

DONG says that the divestment of the Måbjerg CHP plant to Struer Forsyning and Vestforsyning does not change the plans for the Maabjerg Energy Concept biorefinery where the CHP plant will use the biofuel lignin from the biorefinery.

Dalgsgaard concludes: 'The Måbjerg CHP plant is an important factor in the plans for the biorefinery Maabjerg Energy Concept and it is therefore very positive in relation to the realisation of the project that the new owners of the CHP plant will be the local utility companies in Struer and Holstebro.'

The realisation of the Maabjerg Energy Concept depends on whether the Danish government introduces a requirement stipulating that at least 2.5% second generation bioethanol should be added to the petrol in order to create a market for the sale.

The agreement concerning the divestment of the Måbjerg CHP plant, which has been signed on 7 May, is expected to be implemented during the first half of this year and is, among other things, subject to approval by the Danish competition authorities.

 

Source: DONG Energy