Procurement regarding Carbon Capture and Storage as a service

ARC Holdingselskab A/S (“ARC Holding”) is the holding company of an inter-municipal waste management company group (“ARC”) operating in Copenhagen, Denmark, and four surrounding municipalities. ARC assists the general public as well as companies to dispose of their waste in an environmentally and climate friendly way. ARC manages waste for …

CPV: 90700000 Environmental services, 71300000 Engineering services, 90721200 Ozone protection services, 90731000 Services related to air pollution, 90731210 Purchase of CO2 emission credits
áit fhorghníomhaithe:
Procurement regarding Carbon Capture and Storage as a service
clárlann:
ARC Holdingselskab A/S
uimhir dámhachtana:
2025/03

1. Buyer

1.1 Buyer

Official name : ARC Holdingselskab A/S
Activity of the contracting entity : Production, transport or distribution of gas or heat

2. Procedure

2.1 Procedure

Title : Procurement regarding Carbon Capture and Storage as a service
Description : ARC Holdingselskab A/S (“ARC Holding”) is the holding company of an inter-municipal waste management company group (“ARC”) operating in Copenhagen, Denmark, and four surrounding municipalities. ARC assists the general public as well as companies to dispose of their waste in an environmentally and climate friendly way. ARC manages waste for five Danish owner municipalities – Dragør, Frederiksberg, Hvidovre, Copenhagen and Tårnby. ARC is operating the waste-to-energy plant Amager Bakke located close to Copenhagen (“Amager Bakke”). Amager Bakke incinerates domestic and international waste and produces electricity and district heating for the yearly need of approximately 90,000 households. Like all other combustion processes, waste energy also emits CO2, in case of the flue gas from the waste incineration of Amager Bakke this is up to 500,000 tonnes of CO2 annually. ARC is working towards CO2-neutrality by establishing a large-scale CCS-solution at the Amager Bakke site. This will be an important contribution to both the green transition in Denmark and Copenhagen's ambitions to reach CO2-neutrality. For the CCS project and the collaboration between ARC Holding, E.ON Energy Projects GmbH (“EEP”) and E.ON Carbon Capture Solutions Copenhagen ApS (“ECCSC”), the parties have signed a Joint Development Agreement (“JDA”) with the following scope: 1) The obligation of ARC Holding and EEP to perform and finalize all project development activities related to the CCS project up to a final investment and commitment decision by the relevant decision-making bodies of the parties. 2) The obligation of ARC Holding and ECCSC to enter into a Flue Gas Agreement (“FGA”) based on the main terms and conditions as outlined in the JDA by which: • ECCSC will develop, own, and operate a carbon capture plant at Amager Bakke. • ARC will deliver flue gas to ECCSC and pay for the service provided by ECCSC of handling the fossil fraction in the flue gas in accordance with the agreed specifications. • ECCSC will accept the CO2-rich flue gas, remove the CO2, and then return the CO2-depleted flue gas to ARC. • ECCSC will procure the CO2 transport and underground storage. Accordingly, ECCSC intends to provide to ARC Holding the entire value chain from the point of flue gas delivery to the carbon capture plant as well as transport and underground storage of the captured CO2. ARC Holding’s procurement from EEP and ECCSC consists of two phases: (i) the project development phase and (ii) the project execution phase. The project development phase is covered by the JDA, which ARC Holding, EEP and ECCSC have entered into on 25 March 2025 - after the expiry of a 10-day standstill period following the publication of a voluntary ex-ante transparency notice. The project execution phase is covered by the FGA as outlined above. The contracting party on ARC Holdings side will be a subsidiary of ARC Holding yet to be established for the purpose of being the relevant party to the FGA (the “Flue Gas SPV”). The Flue Gas SPV will be a limited liability company operating on commercial terms in accordance with the requirements of Act no. 1647 of 30 December 2024 concerning CO2 capture activities in the utility sector. Thus, the FGA will be first concluded by ARC Holding, and subsequently the FGA including all of its rights and obligations will be assigned to the newly established Flue Gas SPV. The project is related to ECCSC's participation in the Danish Energy Agency's Tender for Contract on subsidy for carbon capture, transport and storage, cf. contract notice no. 604064-2024.
Procedure identifier : ff4e5824-ae6a-41bf-8b47-9e14397aaf24
Previous notice : 05bc3396-8bc8-4560-a3bb-26297d0c7154-01
Internal identifier : 2025/03
Type of procedure : Negotiated without prior call for competition
Justification for the accelerated procedure :
Main features of the procedure : ARC Holding has conduced a negotiated procedure without prior call for competition with E.ON Energy Projects GmbH and E.ON Carbon Capture Solutions Copenhagen ApS. In this connection ARC Holding has published an voluntary ex-ante transparency notice in accordance with the procedure in section 4 of Act No. 593 of 2 June 2016, on the Complaints Board for Public Procurement (the Complaints Board Act). Therefore, the JDA has not been concluded until the passing of 10 calendar days from the day after the publication of the voluntary ex-ante transparency notice, cf. section 4, subsection 1, no. 2 of the Complaints Board Act. Justification for the direct award of contracts is stated under "Results".

2.1.1 Purpose

Main nature of the contract : Services
Main classification ( cpv ): 90700000 Environmental services
Additional classification ( cpv ): 71300000 Engineering services
Additional classification ( cpv ): 90721200 Ozone protection services
Additional classification ( cpv ): 90731000 Services related to air pollution
Additional classification ( cpv ): 90731210 Purchase of CO2 emission credits

2.1.2 Place of performance

Postal address : Vindmøllevej 6
Town : København S
Postcode : 2300
Country subdivision (NUTS) : Byen København ( DK011 )
Country : Denmark

2.1.3 Value

Estimated value excluding VAT : 7 000 000 000 Danish krone

2.1.4 General information

Additional information : Additional information regarding duration: The JDA was entered into on 25 March 2025 and is expected to expire at the latest on 30 May 2026. The FGA is expected to be entered into on 20 August 2025 and is set to expire 15 years after the date of commercial operation of the carbon capture plant. The FGA includes a 5-year extension option. Additional information regarding value of the FGA: The stated contract value is estimated by using an average amount of flue gas delivered as stipulated in the FGA multiplied with an average price over the contract period, which is fluctuating in accordance with specified indices. The total contract value cannot currently be definitively determined, which is due, among other things, to the uncertainty in the market for CO2 capture and storage over the entire contract period.
Legal basis :
Directive 2014/25/EU

5. Lot

5.1 Lot technical ID : LOT-0000

Title : Procurement regarding Carbon Capture and Storage as a service
Description : ARC Holdingselskab A/S (“ARC Holding”) is the holding company of an inter-municipal waste management company group (“ARC”) operating in Copenhagen, Denmark, and four surrounding municipalities. ARC assists the general public as well as companies to dispose of their waste in an environmentally and climate friendly way. ARC manages waste for five Danish owner municipalities – Dragør, Frederiksberg, Hvidovre, Copenhagen and Tårnby. ARC is operating the waste-to-energy plant Amager Bakke located close to Copenhagen (“Amager Bakke”). Amager Bakke incinerates domestic and international waste and produces electricity and district heating for the yearly need of approximately 90,000 households. Like all other combustion processes, waste energy also emits CO2, in case of the flue gas from the waste incineration of Amager Bakke this is up to 500,000 tonnes of CO2 annually. ARC is working towards CO2-neutrality by establishing a large-scale CCS-solution at the Amager Bakke site. This will be an important contribution to both the green transition in Denmark and Copenhagen's ambitions to reach CO2-neutrality. For the CCS project and the collaboration between ARC Holding, E.ON Energy Projects GmbH (“EEP”) and E.ON Carbon Capture Solutions Copenhagen ApS (“ECCSC”), the parties have signed a Joint Development Agreement (“JDA”) with the following scope: 1) The obligation of ARC Holding and EEP to perform and finalize all project development activities related to the CCS project up to a final investment and commitment decision by the relevant decision-making bodies of the parties. 2) The obligation of ARC Holding and ECCSC to enter into a Flue Gas Agreement (“FGA”) based on the main terms and conditions as outlined in the JDA by which: • ECCSC will develop, own, and operate a carbon capture plant at Amager Bakke. • ARC will deliver flue gas to ECCSC and pay for the service provided by ECCSC of handling the fossil fraction in the flue gas in accordance with the agreed specifications. • ECCSC will accept the CO2-rich flue gas, remove the CO2, and then return the CO2-depleted flue gas to ARC. • ECCSC will procure the CO2 transport and underground storage. Accordingly, ECCSC intends to provide to ARC Holding the entire value chain from the point of flue gas delivery to the carbon capture plant as well as transport and underground storage of the captured CO2. ARC Holding’s procurement from EEP and ECCSC consists of two phases: (i) the project development phase and (ii) the project execution phase. The project development phase is covered by the JDA, which ARC Holding, EEP and ECCSC have entered into on 25 March 2025 - after the expiry of a 10-day standstill period following the publication of a voluntary ex-ante transparency notice. The project execution phase is covered by the FGA as outlined above. The contracting party on ARC Holdings side will be a subsidiary of ARC Holding yet to be established for the purpose of being the relevant party to the FGA (the “Flue Gas SPV”). The Flue Gas SPV will be a limited liability company operating on commercial terms in accordance with the requirements of Act no. 1647 of 30 December 2024 concerning CO2 capture activities in the utility sector. Thus, the FGA will be first concluded by ARC Holding, and subsequently the FGA including all of its rights and obligations will be assigned to the newly established Flue Gas SPV. The project is related to ECCSC's participation in the Danish Energy Agency's Tender for Contract on subsidy for carbon capture, transport and storage, cf. contract notice no. 604064-2024.
Internal identifier : 2025/03

5.1.1 Purpose

Main nature of the contract : Services
Main classification ( cpv ): 90700000 Environmental services
Additional classification ( cpv ): 71300000 Engineering services
Additional classification ( cpv ): 90721200 Ozone protection services
Additional classification ( cpv ): 90731000 Services related to air pollution
Additional classification ( cpv ): 90731210 Purchase of CO2 emission credits
Options :
Description of the options : The FGA includes a 5-year extension option.

5.1.2 Place of performance

Postal address : Vindmøllevej 6
Town : København S
Postcode : 2300
Country subdivision (NUTS) : Byen København ( DK011 )
Country : Denmark
Additional information :

5.1.3 Estimated duration

Start date : 25/03/2025
Duration end date : 31/12/2044

5.1.5 Value

Estimated value excluding VAT : 7 000 000 000 Danish krone

5.1.6 General information

The procurement is covered by the Government Procurement Agreement (GPA) : yes
Additional information : Additional information regarding duration: The JDA was entered into on 25 March 2025 and is expected to expire at the latest on 30 May 2026. The FGA is expected to be entered into on 20 August 2025 and is set to expire 15 years after the date of commercial operation of the carbon capture plant. The FGA includes a 5-year extension option. Additional information regarding value of the FGA: The stated contract value is estimated by using an average amount of flue gas delivered as stipulated in the FGA multiplied with an average price over the contract period, which is fluctuating in accordance with specified indices. The total contract value cannot currently be definitively determined, which is due, among other things, to the uncertainty in the market for CO2 capture and storage over the entire contract period.

5.1.12 Terms of procurement

Information about review deadlines : Complaints that ARC Holding has entered into the JDA in violation of the EU procurement rules without prior publication of a contract notice in the Official Journal of the European Union must be submitted to the Danish Complaints Board for Public Procurement or the courts within 30 calendar days from the day after the publication of this contract award notice in the Official Journal of the European Union, cf. section 7, subsections 3 and 6, of the Complaints Board Act.

5.1.15 Techniques

Framework agreement :
No framework agreement
Information about the dynamic purchasing system :
No dynamic purchase system

5.1.16 Further information, mediation and review

Review organisation : Klagenævnet for Udbud -
Information about review deadlines : Complaints that ARC Holding has entered into the JDA in violation of the EU procurement rules without prior publication of a contract notice in the Official Journal of the European Union must be submitted to the Danish Complaints Board for Public Procurement or the courts within 30 calendar days from the day after the publication of this contract award notice in the Official Journal of the European Union, cf. section 7, subsections 3 and 6, of the Complaints Board Act.
Organisation providing additional information about the procurement procedure : ARC Holdingselskab A/S -
Organisation providing more information on the review procedures : Konkurrence- og Forbrugerstyrelsen -
Organisation signing the contract : ARC Holdingselskab A/S

6. Results

Value of all contracts awarded in this notice : 7 000 000 000 Danish krone
Direct award :
Justification for direct award : Contracts listed in Directive 2014/24/EU Art. 7, but not falling within the scope of Directive 2014/25/EU
Other justification : ARC Holding is not subject to the Danish Public Procurement Act (the Danish implementation of the Procurement Directive (Directive 2014/24/EU)) as ARC Holding does not meet the conditions to be qualified as a "contracting authority". ARC Holding is neither a state, regional, nor municipal authority, and ARC Holding operates on commercial terms and therefore does not meet the conditions to be qualified as a "body governed by public law". Furthermore, ARC Holding is not subject to the Utilities Directive (Directive 2014/25/EU) as ARC Holding A/S is not engaged in any of the activities referred to in Articles 8 to 14 of the Utilities Directive. Similarly, the contracting party to the FGA on ARC Holdings side (the Flue Gas SPV) will be established as a limited liability company and will operate on commercial terms in accordance with the requirements of Act no. 1647 of 30 December 2024, concerning CO2 capture activities in the utility sector. Furthermore, the Flue Gas SPV will not engage in activities referred to in Articles 8 to 14 of the Utilities Directive. Consequently, the Flue Gas SPV will also not be subject to the procurement rules, neither the Danish Public Procurement Act nor the Utilities Directive.

6.1 Result lot ldentifier : LOT-0000

At least one winner was chosen.

6.1.2 Information about winners

Winner :
Official name : E.ON Energy Projects GmbH
Tender :
Tender identifier : E.ON Energy Projects GmbH
Identifier of lot or group of lots : LOT-0000
Value of the tender : 840 000 Euro
The tender is a variant : no
Contract information :
Identifier of the contract : JDA
Title : Joint Development Agreement (JDA)
Date of the conclusion of the contract : 25/03/2025
Organisation signing the contract : ARC Holdingselskab A/S
Winner :
Official name : E.ON Carbon Capture Solutions Copenhagen ApS
Tender :
Tender identifier : E.ON Carbon Capture Solutions Copenhagen ApS
Identifier of lot or group of lots : LOT-0000
Value of the tender : 7 000 000 000 Danish krone
The tender is a variant : no
Contract information :
Identifier of the contract : FGA
Title : Flue Gas Agreement (FGA)
Organisation signing the contract : ARC Holdingselskab A/S

6.1.4 Statistical information

Received tenders or requests to participate :
Type of received submissions : Tenders from tenderers registered in other European Economic Area countries than the country of the buyer
Number of tenders or requests to participate received : 1

8. Organisations

8.1 ORG-0001

Official name : ARC Holdingselskab A/S
Registration number : 44969645
Postal address : C/O I/S Amager Ressourcecenter Vindmøllevej 6
Town : København S
Postcode : 2300
Country subdivision (NUTS) : Byen København ( DK011 )
Country : Denmark
Contact point : Sigrid Døvling Søndergaard
Telephone : +4524342718
Roles of this organisation :
Buyer
Organisation providing additional information about the procurement procedure
Organisation signing the contract

8.1 ORG-0002

Official name : Klagenævnet for Udbud
Registration number : 37795526
Postal address : Toldboden 2
Town : Viborg
Postcode : 8800
Country subdivision (NUTS) : Vestjylland ( DK041 )
Country : Denmark
Contact point : Klagenævnet for Udbud
Telephone : +45 72405600
Roles of this organisation :
Review organisation

8.1 ORG-0003

Official name : Konkurrence- og Forbrugerstyrelsen
Registration number : 10294819
Postal address : Carl Jacobsens Vej 35
Town : Valby
Postcode : 2500
Country subdivision (NUTS) : Byen København ( DK011 )
Country : Denmark
Contact point : Konkurrence- og Forbrugerstyrelsen
Telephone : +45 41715000
Information exchange endpoint (URL) : https://www.kfst.dk
Roles of this organisation :
Organisation providing more information on the review procedures

8.1 ORG-0004

Official name : E.ON Energy Projects GmbH
Registration number : HRB 149437
Postal address : Georg-Brauchle-Ring 52-54
Town : Munich
Postcode : 80992
Country subdivision (NUTS) : München, Kreisfreie Stadt ( DE212 )
Country : Germany
Contact point : Peter Basche
Telephone : +49 151 1670 0517
Roles of this organisation :
Tenderer
Winner of these lots : LOT-0000

8.1 ORG-0005

Official name : E.ON Carbon Capture Solutions Copenhagen ApS
Registration number : 45395871
Postal address : Dirch Passers Allé 76
Town : Frederiksberg
Postcode : 2000
Country subdivision (NUTS) : Byen København ( DK011 )
Country : Denmark
Contact point : Ali Meschi Amoli
Telephone : +49 152 01471 325
Roles of this organisation :
Tenderer
Winner of these lots : LOT-0000

8.1 ORG-0006

Official name : Mercell Holding ASA
Registration number : 980921565
Postal address : Askekroken 11
Town : Oslo
Postcode : 0277
Country subdivision (NUTS) : Oslo ( NO081 )
Country : Norway
Contact point : eSender
Telephone : +47 21018800
Fax : +47 21018801
Internet address : http://mercell.com/
Roles of this organisation :
TED eSender

11. Notice information

11.1 Notice information

Notice identifier/version : 1c298f29-100a-4d73-886c-926e860f7cf8 - 01
Form type : Result
Notice type : Contract or concession award notice – standard regime
Notice dispatch date : 26/03/2025 14:53 +00:00
Notice dispatch date (eSender) : 26/03/2025 19:12 +00:00
Languages in which this notice is officially available : English

11.2 Publication information

Notice publication number : 00199545-2025
OJ S issue number : 62/2025
Publication date : 28/03/2025