A 1.3 billion green energy investment in Aarhus

Date: 24 June 2014

A quarter of a million inhabitants in Aarhus, Denmark’s second-largest city, can look forward to their district heating becoming green.

The Department of Waste and District Heating in the city of Aarhus and DONG Energy are investing a total of EUR 170 million (DKK 1.3 billion) in converting the Studstrup Power Station from coal to wood pellets.

The Studstrup Power Station in Aarhus, which supplies approximately 80% of the total district heating to Aarhus and the surrounding area, will undergo the second phase of the conversion to run on wood pellets at a value of approximately EUR 93.9 million: “The conversion of Studstrup Power Station is a major step towards replacing coal at our power stations and consequently reducing Denmark’s CO2 emission. It’s a cost-efficient way of supplying green electricity and heat for the Aarhus area so we’re pleased that the conversion can now begin in earnest.”, said Executive Vice President in DONG Energy Thomas Dalsgaard.

Lower emissions and hundreds of green jobs
The conversion of Studstrup Power Station from coal to biomass contributes significantly to Aarhus’ goal of becoming CO2 neutral by 2030. At the same time, the investment is expected to create 400-500 jobs during the construction period and will future-proof the power station and the current jobs.

“With the change from coal to wood pellets, the Department of Waste and District Heating in Aarhus and DONG Energy are sending a strong signal that it’s worthwhile to invest in environmentally friendly technology, while making a solid contribution to a greener Aarhus at the same time. There is every reason to be pleased on behalf of both the environment and the city,” said, the Mayor of Aarhus Jacob Bundsgaard.

Paving the way for the green conversion
The conversion of Studstrup Power Plant is now a reality after a major obstacle concerning the settlement of the tax advantage has been solved. A bill which has just been passed by the Danish Parliament has ensured this.

“It’s the Danish government’s ambition that growth and the green transformation go hand in hand. The conversion of Studstrup Power Station contributes to the creation of workplaces and helps promote the green transformation. It’s gratifying when companies benefit from and use the Danish legislation – in this case new rules making power stations’ tax settlement system more transparent.”, said the Danish Minister for Taxation Morten Østergaard.

The conversion of Studstrup Power Station is divided into two phases – a life extension of unit 3 which is already in progress, and a subsequent conversion to biomass firing which will be initiated now. The entire conversion is expected to be completed in the autumn 2016.
Source: DONG Energy