Denmark's Dong Energy A/S (CPH:DENERG) on Tuesday unveiled an agreement that will enable one of the largest power stations in the country to phase out coal and begin supplying green energy.
The energy group has signed a 20-year agreement with customers of Asnaes Power Station near Kalundborg that will allow the plant to supply steam, district heating and power from wood chips starting in late 2019. The contract is with Novo Nordisk A/S (CPH:NOVO-B), Novozymes A/S (CPH:NZYM-B) and utility company Kalundborg Forsyning. The conversion of the power station will begin this summer.
Under the deal, a new wood chip-fired plant will be connected to the power station's existing installations and systems. It will have a capacity of 25 MW power and a total of 129 MWth district heating and process steam.
Asnaes Power Station currently has two coal-fuelled units -- Unit 2 with a capacity of 142 MW power and 193 MWth district heating and process steam, and Unit 5 with a capacity of 640 MW power and 308 MWth district heating and process steam. The units now operate alternately to produce district heating, process steam and power, Dong says.
"The future belongs to sustainable energy sources such as wind, solar and biomass. We'll therefore be phasing out all use of coal at our power stations by 2023," said Thomas Dalsgaard, executive vice president at Dong Energy.
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