Dong Energy has started work on the DKK1.2bn ($187.6m) project for conversion of the Asnæs Power Station in Denmark.
The converted facility, expected to be operational in 2019, will be fuelled by sustainable biomass instead of coal.
The new biomass plant will be constructed as a separate unit in new buildings at the power station. The facility will be connected to the existing district heating and process steam networks and the electricity grid. The project scope also includes setting up new conveyor system and wood chip storage.
The conversion project is expected to reduce annual carbon footprint by around 800,000 tonnes. Funding for the project was facilitated through a 20-year agreement between Dong Energy and Novo Nordisk, Novozymes and Kalundborg Forsyning.
Dong Energy bioenergy and thermal power executive vice president and CEO Thomas Dalsgaard said: “By 2023, we'll have phased out all use of coal at our power stations. With the conversion of Asnæs Power Station, we and our customers are taking an important step towards becoming coal-free.”