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21-01-2022 Maabjerg BioEnergy shelved

The establishment of the world's largest bio energy plant based on manure has been shelved. The board is waiting for the government's energy proposal.  At present, the conditions for operating a bio energy plant such as the one in Maabjerg are not present.


After the pre-qualification process, Maabjerg Bioenergy is now a legally and technically completed project ready to invite tenders from selected companies. Everything concerning the founding of the company, agreement conditions and increase of capital have been settled.


However, the board has decided to shelve the work until the conditions has been further clarified in the Folketing (the Danish Parliament).


During the past six months, rumours have spread that the Folketing is prepared to increase the guaranteed price of electricity produced from bio energy, but are awaiting the government's new energy proposal. Therefore, the board is still optimistic about the future and hope that a decision is just around the corner.


With the contributions to a CO2 reduction, water environment, the production and employment Maabjerg Bioenergy and similar projects presents, we are confident that the Folketing will eventually support such projects, says Chairman of the Board Martin Merrild, who still believes a solution will be found.


Naturally, Maabjerg Bioenergy A/S was pleased when the EU last week accepted an exception of dues for burning the fibre fraction in manure, since this is an important precondition for the project financing.


Unfortunately, the past two years of waiting have been expensive for the project due to a price increase of 12 to 27 % on important components. This obviously depreciates the economy greatly.


The people behind Maabjerg BioEnergy has never quite understood why the fibre fraction from manure cannot be included in the bio mass announcement, as in Germany and the UK, so that it should not be discharged in accordance with the combusting directive's steep environmental demands, like the ones on burning e.g. wood chips, straw and green pills.


If this were the case, the neighbour, the Måbjerg CHP, would have discharged the fibre fraction. Instead Maabjerg Bioenergy now has to build its own discharging plant at the price of DKK 50 millions, and also expect additional expenditure for operating the plant.


Detailed investment- and operating budgets have been prepared . They confirm that the calculations presented by the trade organization for biogas show that bio energy projects should be guaranteed a higher electricity price than the 60/40 Danish øre the Folketing granted several years ago.