HOFOR entered a strategic partnership with Elimini

HOFOR A/S, the largest public utility in Greater Copenhagen, entered a strategic partnership with Elimini, a carbon removal company and the US subsidiary of the UK-listed Drax Group, to develop a large-scale bioenergy with carbon capture and storage (BECCS) facility at Amagerværket in Copenhagen, a DKK multi-billion investment.

HOFOR provides water, heat, city gas, district cooling, and wastewater disposal for more than 1 million people in Copenhagen and its suburbs. Together with eight owner municipalities, HOFOR creates sustainable cities with a focus on wind turbines and solar parks, cloudburst projects, energy optimisation, and the development of future supply solutions. HOFOR has over 150 years of experience, 1,600 employees, and an annual turnover of more than DKK 7 billion.

Elimini is a carbon removal company focused on large-scale development of BECCS technology. Its goal is to permanently remove carbon dioxide from the atmosphere while producing round-the-clock renewable and reliable power, in collaboration with partners across its value chain. Elimini is a wholly owned subsidiary of Drax Group (LSE:DRAX), a global energy company with a long track record in decarbonisation projects.
By supporting the deployment of reliable renewable electricity and removing CO2 from the atmosphere, the partnership will play an important role in enabling Denmark to achieve its carbon removal and broader climate targets while stimulating both job creation and economic growth.

Elimini is a development partner for the project in this first stage, using its expertise in BECCS to support HOFOR with the project and marketing for the carbon removal credits. Following further project evaluation, and subject to agreement by both Elimini and HOFOR, the parties will explore the potential formation of a joint venture transform Unit 4 (AMV4) at the site to capture CO2 and generate high-quality, verified carbon removal credits (CDRs) in addition to renewable electricity and heat.

Clairfield in Denmark (MHS Corporate Finance) acted as financial advisor to HOFOR.