Ørsted has secured a new agreement with Equinor to sell carbon dioxide removal (CDR) credits totaling 330,000 tonnes of CO2 over the next decade. This deal is part of ‘Ørsted Kalundborg CO2 Hub’ project, which aims to capture 430,000 tonnes of biogenic CO2 annually from two biomass-fired combined heat and power (CHP) plants starting in 2026. The captured CO2, derived from sustainable biomass, will be permanently stored beneath the North Sea seabed, effectively removing it from the atmosphere and contributing to negative emissions.
The sale of these CDR credits is essential for advancing the ‘Ørsted Kalundborg CO2 Hub,’ as biomass-based carbon capture and storage technology is still in its nascent stages and incurs significant costs. Revenue from the CDR credits, along with support from the Danish Energy Agency, is crucial for financing this innovative project.
Equinor’s participation in this agreement aligns with its strategy to cut net scope 1 and 2 greenhouse gas emissions by 50% by 2030 compared to 2015 levels. The company aims to meet up to 10% of this target through CDR credits, with the remaining 90% achieved through direct reductions.
Ole Thomsen, Senior Vice President and Head of Ørsted’s Bioenergy business said, “Equinor shares Ørsted’s commitment to maturing carbon capture and storage technologies. We already have a partnership with Equinor and Nordsøfonden to explore the possibility of storing CO2 in the subsurface, and we’re pleased to expand the collaboration through this agreement on the sale of CDR credits.”
Northern Lights, Ørsted’s partner responsible for subsurface CO2 storage, is also co-owned by Equinor, among others.
Svein Skeie, Senior Vice President of Strategy & Business Development at Equinor said, “We’re very pleased to expand our cooperation with Ørsted to also include CDR credits. We both share the belief that building markets enabling the physical reduction and removal of carbon will play a role in reducing emissions.”