Dong Energy has concluded agreements for the conversion of the Asnæs power station to bio energy that will help phase out coal-fired generation in Denmark by 2023.

The Danish utility made the agreements with Novo Nordisk, Novozymes and Kalundborg Forsyning to allow the connection of a new wood chip-fired plant to the power station’s existing installations and systems.

The new bio plant will supply steam and district heating under a 20-year contract from 2019 to Kalundborg Forsyning.

The conversion, which will start in the summer, also means that the energy consumption at Novo Nordisk’s largest production unit in Kalundborg will become carbon-neutral.

The wood chips will primarily come from by-products, such as branches, twigs and thinning trees from sustainable forestry projects, Dong said.

Dong executive vice president Thomas Dalsgaard said: “The future belongs to sustainable energy sources such as wind, solar and biomass.

“We'll therefore be phasing out all use of coal at our power stations by 2023, and the decision, which was made together with our customers, is an important step on the way.”

Kalundborg Forsyning chief executive Hans-Martin Friis Møller said: “For Kalundborg Forsyning, it’s essential to secure a good, inexpensive supply of district heating for the customers in Kalundborg, while simultaneously contributing to the transition from fossil fuels to a sustainable solution.”

Image: Asnæs power station (Dong Energy)