DCC Energi, a DCC plc business, will become co-owner of one of Denmark's largest "farming biogas plants", Frijsenborg Biogas. The deal strengthens the commercial competency of the operation and DCC Energi will for the first time become a co-owner of Danish production infrastructure. The investment expands DCC Energi's position in the gas market at a time of progress for Danish biogas. It is part of DCC’s strategy to lead with energy in the solutions of the future.
In a new joint venture, DCC Energi will now become a co-owner of Frijsenborg Biogas. With the deal, the energy company, which also runs the Shell network in Denmark, will have 50 per cent ownership of the biogas company founded by Bendt Wedell. One of the country's largest land and forest owners will now have an experienced and commercially strong Danish energy player involved in the continuing development of the large biogas plant at Frijsenborg west of Aarhus.
“In the coming years, biogas will play an important role in the energy transition. We are experiencing an increase in demand for biogas from our customers. As co-owners of a Danish biogas plant, we want to ensure that a bigger part of the Danish biogas reaches Danish customers. At the same time, we are now expanding DCC Energi's current business within gas with Danish-produced biogas,” says Christian Heise, CEO of DCC Energi.
Today, Frijsenborg Biogas produces over 15 million Nm3 of biogas for the Danish natural gas network and has potential for further production. This corresponds to the annual consumption of approx. 6,000 households. The biogas is made from residues from two large chicken farms at Frijsenborg and Wedellsborg as well as other types of biomaterials from agriculture and the food industry.
As one of the country's major energy companies, DCC Energi is an active partner on the road to a more sustainable future. The investment in Frijsenborg Biogas means that DCC Energi is now taking a step up the value chain as the owner of a production plant - in line with the strategy of continuously expanding the portfolio with more sustainable forms of energy, according to Christian Heise.
“The joint venture is directly related to our strategy to pioneer with the energy of the future. We want to increase our commitment to cleaner forms of energy and thereby take part in the long-term transition of the energy market and society. Here, an investment in Danish biogas extracted from residual waste from large farms such as Frijsenborg and Wedellsborg is an obvious option. This is something we can build to secure Danish biogas for companies and consumers”.
In the new joint venture, Bendt Wedell will continue as managing director and the daily operations will continue to be handled by the current employees.
“We look forward to the partnership with DCC Energi and to develop the energy of the future together. We complement each other really well, and I see this as the start of a visionary collaboration,”
says Bendt Wedell.
The transaction is subject to regulatory clearance and is expected to complete before the summer holidays.