DONG Energy, AVA form biomass district heat agreement

By DONG Energy | March 22, 2013

DONG Energy and AffaldVarme Aarhus (AVA) have agreed on a new biomass-based heat agreement for the period until 2030. It will mean that Unit 3 of the  Studstrup power station in Aarhus will have to be converted for firing with wood pellets.

”We are delighted that the agreement has now been concluded so that, going  forward, we will be able to supply green heat to Aarhus Municipality and the surrounding area. The agreement is entirely in keeping with Aarhus Municipality’s ambition for a green, reliable heat supply and DONG Energy's  strategy to reduce CO2 emissions,” says Thomas Dalsgaard, executive vice  president of DONG Energy.

The conversion underpins Aarhus’ aim to become CO2-neutral by 2030, as the conversion from coal to wood pellets at Studstrup power station’s Unit 3 will  mean a marked reduction in CO2 emissions in the area.

The Studstrup power station is expected to be ready to supply biomass-based heat to Aarhus and the surrounding municipalities from Oct. 1, 2015. The agreement between AVA and DONG Energy is subject to DONG Energy making a final investment decision on the biomass conversion around April 1.

The information provided in this announcement does not change DONG Energy’s previous financial guidance for the 2013 financial year or the announced expected investment level.