Brussels – The European Commission has approved under EU state aid rules Danish investment aid of DKK 422 million (€57 million) to DONG Energy Thermal Power A/S for the conversion of an existing thermal power unit from coal to a high efficiency unit using biomass in Kalundborg. The new cogeneration unit will supply renewable electricity to the grid, renewable district heating to Kalundborg Forsyning, and renewable process steam to the industry. The measure will contribute to the long-term goal of a fossil-fuel-free Denmark by 2050. The Commission’s investigation found that the aid will help further EU environmental and energy targets and that the support is limited to what is needed. In particular, the aid amounts to 33% of the eligible costs, which is below the 45% allowed under the 2014 Guidelines on State Aid for Environmental Protection and Energy. The Commission found that the project concerns the replacement of an existing unit, and that it will not lead to undue distortions of competition in the electricity market. On the basis of this analysis, the Commission concluded that the investment aid is in line with EU state aide rules.
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