European Commission Approves Aid for Danish Coal-to-biomass Plant Conversion

 

The European Commission (EC) last week said that it has approved state aid for the conversion of a coal plant to biomass in Kalundborg, Denmark.

DONG Energy Thermal Power A/S will receive DKK 422 million (US$63.7 million) to convert an existing thermal power unit from coal to a high efficiency unit using biomass.

According to the EC, the new cogeneration unit will supply renewable electricity to the grid, renewable district heating to Kalundborg Forsyning, and renewable process steam to the industry.

The EC said that its investigation found that the aid will help further EU environmental and energy targets and that the support is limited to what is needed. Specifically, the aid amounts to 33 percent of the eligible costs, which is below the 45 percent allowed.

In addition, the EC found that the project will not lead to undue distortions of competition in the electricity market.