The business case for carbon capture and storage at Vestforbrænding with public funding ​

Situation

In 2022, the Danish Energy Agency issued a tender aimed at subsidising carbon capture and storage (CCS) solutions in Denmark. Vestforbrænding, a publicly owned, waste-to-energy company, planned to bid for this subsidy to capture CO2 at their point source in the waste disposal plant in Glostrup near Copenhagen. ​

​The business case for such a plant is complex because of unknown technology costs and multiple regulatory, fiscal, and tax complications. In addition, a carbon capture plant at Vestforbrænding would affect the operation of heat and electricity production, which in any case fluctuates with seasonal demand.​ We were asked to quantify the CCS business case and the main risks involved, and to support Vestforbrænding in the tender process.

Outcome

We did so by building a forward-looking cash flow model using various data inputs and parameters. This model allowed us to stress-test specific parameters and inputs, therefore identifying which uncertainties had the biggest implications for the business case.

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Picture of chimneys
I/S Vestforbrænding​