2 November 2005 – Elsam has applied to the Danish Energy Agency for permission to build a large straw fired power plant in Fynsvaerket at a cost of DKK700m ($113m).
To be built by late 2008, the plant will have a capacity of 150 000 tonnes of straw per year. If the project is approved construction will begin in 2006.
The plant would see Elsam meet the target of using 750 000 tonnes of straw and wood chips for electricity production as set by the 1993 Biomass Agreement.
Elsam’s CEO, Niels Bergh-Hansen, said: “A separate power plant is much more expensive, but our calculations have shown that building a separate plant is a much better solution than building a new co-fired unit at the existing plant.”
As part of an agreement between Dansk Olie og Naturgas (DONG) and Vattenfall in connection with DONG’s takeover of Vattenfall’s Elsam shares, Vattenfall will eventually become the owner of the project if the EU approves the takeover in the first half of 2006.