Anaergia has signed an agreement with European Energy to supply up to 60,000 tonnes per year of liquefied biogenic carbon dioxide for 10 years.
The Copenhagen-based renewable wind and solar energy producer, which has a pipeline of more than 20GW renewable energy projects, will produce green e-methanol from the biogenic CO2. Under the terms of an agreement European Energy had previously entered into with A.P. Moller Maersk, the green e-methanol will be used to power the first container vessel that the container shipping giant is building to operate on the carbon neutral fuel.
Anaergia – whose gross profit increased to $8mn for the quarter to June 30, up $2mn year-on-year – will provide the liquified carbon dioxide from the anaerobic digesters that will operate at its plant being built in Tønder, Denmark, and build a modern carbon dioxide liquification system at the plant.
Andrew Benedek, Chairman and CEO of Anaergia, said, “The benefit for us is the ability to sell the biogenic CO2 from our plants that is produced when we convert organic materials to methane and CO2. By selling this CO2 instead of returning it to the atmosphere, our plants contribute to de-carbonising hard-to-abate sectors, such as shipping, while becoming more profitable, as we turn this waste gas from our plants into a useful fuel. This is a great example of carbon capture and utilisation, a critical step on the path towards net zero.
Knud Erik Andersen, co-founder and CEO of European Energy, said, ”In Anaergia, we have found a partner that like European Energy is committed to fight climate change through new technologies that can make a real impact,” adding that it looked forward to working with Anaergia globally.
Last month European Energy bought a 51% majority share in Ammongas, the 20-year-old Danish company which works with upgrading biogas as well as carbon capture.
European Energy plans to start delivering green hydrogen to Port Esbjerg from the first half of 2023 from its production facilities in Esbjerg.
Biogenic carbon dioxide is carbon dioxide that is released during the decomposition of organic matter such as food waste. All Anaergia plants use organic waste material to produce biogas, which is composed of methane and carbon dioxide.
Once the gas is processed, Anaergia produces pipeline quality Renewable Natural Gas and a clean stream of carbon dioxide that normally gets released to the atmosphere at source of origin. Biogenic carbon dioxide that comes from organic material is considered a desirable raw material for low-carbon fuels as its use does not add new carbon to the atmosphere.
With the US currently wrestling with carbon dioxide shortages, biogenic carbon dioxide may well play a key role in providing reliable supplies and alleviating future bottle-necks.