Dong Energy approves new heating agreement applicable until 2037 for woodchip-fueled Skærbæk Power Station on Denmark's Kolding Fiord; facility expected to produce electricity, heat based on biomass from 2017, can use gas as secondary fuel
June 25, 2014
– The boards of directors of TVIS, the heating transmission company in the Danish Triangle Region, and DONG Energy have just approved a new heating agreement for Skærbæk Power Station applicable until 2037. The agreement will be signed by the parties today at 15.30 at a joint press conference. The agreement entails the establishment of a wood chip-fired plant linked to unit 3 at the power station, so that the power station will primarily use wood chips as fuel when heat is being produced. The total investment in the conversion will amount to approximately DKK 1.8 billion.
Thomas Dalsgaard, Executive Vice President in DONG Energy, said: "We're very pleased that the heating agreement is now in place, and that a final decision to invest in the conversion has been made. This means that Skærbæk Power Station is expected to produce electricity and heating based on biomass from 2017, but at the same time the power station has the possibility of using gas as secondary fuel. This ensures a green and stable supply."
TVIS will pay 80% of the construction costs and thereby acquires the right to the heating capacity from Skærbæk Power Station which is in line with TVIS' wish to increase the share of biomass-based heating to the Triangle Region.
Leif Skov, Chairman of the Board of Directors of TVIS, said: "TVIS' vision is to supply environmentally friendly district heating at competitive prices in the entire Triangle Region. With the new biomass plant, we've created an ambitious and solid basis for the heating supply in our four municipalities."
The conversion of Skærbæk Power Station comprises, among other things, the construction of new boilers, a boiler building, the establishment of storage facilities for wood chips, new cranes and an extension of the harbour facilities. The conversion is expected to begin in September 2014, enabling the Skærbæk Power Station to supply heating produced using wood chips no later than in the heating season 2017-18.
The biomass-based heating contract with TVIS underpins DONG Energy's target that 50 per cent of the energy from our Danish power stations must originate from sustainable biomass in 2020.
The information provided in this announcement does not change DONG Energy’s previous financial guidance for the 2014 financial year or the announced expected net investment level for 2014-2015.
For additional information, please contact:
Carsten Birkeland Kjær
+45 99 55 77 65
Allan Bødskov Andersen
+45 99 55 97 69
DONG Energy is one of the leading energy groups in Northern Europe. Our business is based on procuring, producing, distributing and trading energy and associated products across Northern Europe. DONG Energy has around 6,500 employees and is headquartered in Denmark. The Group generated DKK 73 billion (EUR 9.8 billion) in revenue in 2013. For further information, see www.dongenergy.com.