Joint Development Agreement

HOFOR CC HOLDING A/S (“HOFOR”) has decided to pursue a BECCS project to capture carbon dioxide from the flue gas from the combined heat and power plant unit 4 (AMV4), which includes the design, construction, operation and ownership of a carbon capture facility on the property at or adjacent to …

CPV: 90700000 Miljötjänster
Plats för avrättning:
Joint Development Agreement
Plats för tilldelning:
HOFOR CC HOLDING A/S
Tilldelningsnummer:

1. Buyer

1.1 Buyer

Official name : HOFOR CC HOLDING A/S
Legal type of the buyer : Body governed by public law
Activity of the contracting authority : General public services

2. Procedure

2.1 Procedure

Title : Joint Development Agreement
Description : HOFOR CC HOLDING A/S (“HOFOR”) has decided to pursue a BECCS project to capture carbon dioxide from the flue gas from the combined heat and power plant unit 4 (AMV4), which includes the design, construction, operation and ownership of a carbon capture facility on the property at or adjacent to Amagerværket, and the development and management of the related upstream and downstream value chain activities on arms-length commercial terms with a view of undertaking the BECCS project with or without a joint venture partner ("Project"); In this respect HOFOR has entered into a joint development agreement with Carbon Removals Denmark A/S, a company forming part of the wider Elimini group, on 28 July 2025 as the basis upon which the parties will continue to evaluate the Project setting out the basis for the development and maturation of the potential Project and, subject to approval by the parties, entry into the definitive agreements and potential formation of a joint venture. For that purpose the agreement sets out a framework for the detailed evaluation and development of the Project through the preparation, negotiation, and execution of the definitive agreements; and setting forth the terms and conditions upon which the Parties shall conduct exclusive negotiations with respect to the Project and the consequences should a Party elect to withdraw from the implementation of the Project. HOFOR and Carbon Removals Demark A/S intend, subject to relevant approvals, for the Project to be developed using a special purpose vehicle (the “Project SPV”), with HOFOR having a controlling interest in the Project SPV. The parties intend for the Project SPV to be the relevant counterparty in respect of all contracts with suppliers and contractors entered into for the Project. The agreement is expected to commence after signing and will continue until terminated by either party (or the entry into a joint venture agreement). The joint development agreement relates to the participation by HOFOR, through its subsidiary HOFOR DSS SPV A/S, in the Danish Energy Agency's CCS-subsidy tender, cf. Contract Notice No. 604064-2024 of 8 October 2024. If the joint development agreement is terminated for whatever reason, HOFOR shall have the right to continue the development and advancement of the Project alone or together with another third party at its sole cost, risk and discretion subject to the requirement for HOFOR to compensate Carbon Removals Denmark A/S in certain circumstances for its agreed costs of participating in the joint development of the Project up until the termination.
Procedure identifier : db33eef2-857e-4956-ba3b-1f049c8f0819
Type of procedure : Negotiated without prior call for competition

2.1.1 Purpose

Main nature of the contract : Services
Main classification ( cpv ): 90700000 Environmental services

2.1.2 Place of performance

Country subdivision (NUTS) : Byen København ( DK011 )
Country : Denmark

2.1.4 General information

Additional information : Value: As the agreement relates to joint development of the Project, both HOFOR CC HOLDING A/S and Carbon Removals Denmark A/S will be incurring expenditures in progressing project development, but neither party will (except potentially in certain termination scenarios) be making any payments to each other. Each of HOFOR CC HOLDING A/S and Carbon Removals Denmark A/S will provide internal resources and bear their own respective internal costs incurred in developing the Project. Any external project development costs will be split between and borne by each of HOFOR CC HOLDING A/S and Carbon Removals Denmark A/S in accordance with their respective participating interest in the Project (subject to certain termination scenarios). The monetary value stated in this contract award notice in the amount of EUR 40-46 million reflects HOFOR’s current estimate of the value of project development resources and expenditure which HOFOR will contribute under the agreement. The value is however only an estimate and cannot be determined definitively at this time due to the uncertainty associated with the further development of the project over the entire contract period.
Legal basis :
Other

5. Lot

5.1 Lot technical ID : LOT-0001

Title : Joint Development Agreement
Description : HOFOR CC HOLDING A/S (“HOFOR”) has decided to pursue a BECCS project to capture carbon dioxide from the flue gas from the combined heat and power plant unit 4 (AMV4), which includes the design, construction, operation and ownership of a carbon capture facility on the property at or adjacent to Amagerværket, and the development and management of the related upstream and downstream value chain activities on arms-length commercial terms with a view of undertaking the BECCS project with or without a joint venture partner ("Project"); In this respect HOFOR has entered into a joint development agreement with Carbon Removals Denmark A/S, a company forming part of the wider Elimini group, on 28 July 2025 as the basis upon which the parties will continue to evaluate the Project setting out the basis for the development and maturation of the potential Project and, subject to approval by the parties, entry into the definitive agreements and potential formation of a joint venture. For that purpose the agreement sets out a framework for the detailed evaluation and development of the Project through the preparation, negotiation, and execution of the definitive agreements; and setting forth the terms and conditions upon which the Parties shall conduct exclusive negotiations with respect to the Project and the consequences should a Party elect to withdraw from the implementation of the Project. HOFOR and Carbon Removals Demark A/S intend, subject to relevant approvals, for the Project to be developed using a special purpose vehicle (the “Project SPV”), with HOFOR having a controlling interest in the Project SPV. The parties intend for the Project SPV to be the relevant counterparty in respect of all contracts with suppliers and contractors entered into for the Project. The agreement is expected to commence after signing and will continue until terminated by either party (or the entry into a joint venture agreement). The joint development agreement relates to the participation by HOFOR, through its subsidiary HOFOR DSS SPV A/S, in the Danish Energy Agency's CCS-subsidy tender, cf. Contract Notice No. 604064-2024 of 8 October 2024. If the joint development agreement is terminated for whatever reason, HOFOR shall have the right to continue the development and advancement of the Project alone or together with another third party at its sole cost, risk and discretion subject to the requirement for HOFOR to compensate Carbon Removals Denmark A/S in certain circumstances for its agreed costs of participating in the joint development of the Project up until the termination.

5.1.1 Purpose

Main nature of the contract : Services
Main classification ( cpv ): 90700000 Environmental services

5.1.2 Place of performance

Country subdivision (NUTS) : Byen København ( DK011 )
Country : Denmark
Additional information :

5.1.6 General information

Procurement Project not financed with EU Funds.
The procurement is covered by the Government Procurement Agreement (GPA) : yes
Additional information : The value of the contract is estimated to be between 40-46 million EUR. As the agreement relates to joint development of the Project, both HOFOR CC HOLDING A/S and Carbon Removals Denmark A/S will be incurring expenditures in progressing project development, but neither party will (except potentially in certain termination scenarios) be making any payments to each other. Each of HOFOR CC HOLDING A/S and Carbon Removals Denmark A/S will provide internal resources and bear their own respective internal costs incurred in developing the Project. Any external project development costs will be split between and borne by each of HOFOR CC HOLDING A/S and Carbon Removals Denmark A/S in accordance with their respective participating interest in the Project (subject to certain termination scenarios). The monetary value stated in this contract award notice in the amount of EUR 40-46 million reflects HOFOR’s current estimate of the value of project development resources and expenditure which HOFOR will contribute under the agreement. The value is however only an estimate and cannot be determined definitively at this time due to the uncertainty associated with the further development of the project over the entire contract period.

5.1.10 Award criteria

Criterion :
Type : Price
Description : None since direct award.
Description of the method to be used if weighting cannot be expressed by criteria : None since direct award.

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 : The Danish Complaints Board for Public Procurement
Information about review deadlines : HOFOR CC HOLDING A/S has followed the procedure in section 4 of the Appeals Board Act. Thus, no agreement has been entered into between the parties before the expiry of 10 calendar days from the day after the date on which a voluntary ex-ante notice was published, cf. Section 4(1)(2) of the Complaints Board Act, cf. statutory order no. 448 of 8th May 2025. Such notice was published on 15 July 2025, cf. contract notice 460202-2025. Appeal instructions: HOFOR CC HOLDING A/S follows the procedure in section 4 of the Appeals Board Act. Pursuant to Section 7(3) of the Complaints Board Act, a complaint that HOFOR CC HOLDING A/S has entered into an agreement in violation of the procurement rules without prior publication of a contract notice in the Official Journal of the European Union, must be submitted to the Complaints Board for Public Procurement within 30 calendar days from the day after the day on which HOFOR CC HOLDING A/S publishes this notice in the Official Journal of the European Union announcing that HOFOR CC HOLDING A/S has entered into a contract, provided that the notice contains the reasons for the decision to award the contract without prior publication of a contract notice in the Official Journal of the European Union. No later than at the same time as a complaint is submitted to the Complaints Board for Public Procurement, the complainant must, pursuant to section 6(4) of the Complaints Board Act, notify HOFOR CC HOLDING A/S in writing that a complaint is being lodged with the Complaints Board for Public Procurement and whether the complaint is being lodged during the standstill period, cf. section 3(1) or (2), or during the period of 10 calendar days specified in Section 4(1)(2). In cases where the complaint has not been lodged within the aforementioned periods, the complainant must also state whether suspensive effect is requested, cf. Section 12(1) of the Act. The Complaints Board for Public Procurement's own complaints guidelines can be found at www.naevneneshus.dk .
Organisation signing the contract : HOFOR CC HOLDING A/S

6. Results

Value of all contracts awarded in this notice : 40 000 000 Euro
Direct award :
Justification for direct award : The procurement falls outside the scope of application of the directive
Other justification : According to Act No. 1647 of 30 December 2024 on CO2 capture activities in the utility sector, a municipality's participation in CO2 capture activities must be on commercial terms as a shareholder in a limited company, cf. section 3 of the Act. For the purpose of the BECCS Project HOFOR HOLDING A/S has hence incorporated HOFOR CC HOLDING A/S, whose purpose is to develop and operate the HOFOR group's BECCS activities on commercial terms in accordance with the Act on CO2 capture activities in the utility sector. HOFOR CC HOLDING A/S’s purpose can be achieved, among other things, by directly or indirectly owning shares in other companies, entering into agreements with players in the value chain related to CO2 capture activities and other related activities. HOFOR CC HOLDING A/S shall operate on market terms, bear a real financial risk associated with the performance of its activities and aim to generate a market return on the capital invested through its activities. In the light hereof, HOFOR CC HOLDING A/S is not considered to be subject to the rules of the Public Procurement Act (Statutory order No. 116 of 3 February 2025), the Directive on the award of concessions contracts (Directive 2014/23/EU) or the Utilities Directive (Directive 2014/25/EU) in relation to the award of the Joint Development Agreement. Hence, HOFOR CC HOLDING A/S is not considered to be a contracting authority under the Public Procurement Act, as the company's activities are of an industrial/commercial character and are carried out in a limited liability company on purely commercial terms. As the Public Procurement Act does not apply to HOFOR CC HOLDING A/S, the Directive on award of concession contracts does not apply either, as the scope of the Directive 2014/23/EU corresponds to the scope of the Public Procurement Act. Finally, HOFOR CC HOLDING A/S has also assessed that the Joint Development Agreement does not relate to an activity covered by Articles 8-14 of the Utilities Directive. CO2 capture is not considered to be an activity that falls under either Article 14 of the Utilities Directive on the use of a geographical area for, inter alia, the extraction of gas, or Article 8 on the provision or operation of fixed networks for the supply of gas to the public in connection with the production, transport or distribution of gas or the supply of gas to fixed networks. HOFOR CC HOLDING therefore does not meet the condition for being a contracting entity under the Utilities Directive in relation to this agreement, cf. Article 4(1) of the Directive.

6.1 Result lot ldentifier : LOT-0001

At least one winner was chosen.

6.1.2 Information about winners

Winner :
Official name : Carbon Removals Denmark A/S
Tender :
Tender identifier : Carbon Removals Denmark A/S
Identifier of lot or group of lots : LOT-0001
Value of the tender : 0 Euro
Subcontracting : No
Contract information :
Identifier of the contract : Joint Development Agreement
Date of the conclusion of the contract : 28/07/2025
Information about European Union funds
Identifier of EU funds : None.
Organisation signing the contract : HOFOR CC HOLDING A/S

6.1.4 Statistical information

Received tenders or requests to participate :
Type of received submissions : Tenders
Number of tenders or requests to participate received : 1
Type of received submissions : Tenders from micro, small or medium tenderers
Number of tenders or requests to participate received : 1
Type of received submissions : Tenders submitted electronically
Number of tenders or requests to participate received : 1
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 : 0
Type of received submissions : Tenders from tenders registered in countries outside of the European Economic Area
Number of tenders or requests to participate received : 0

8. Organisations

8.1 ORG-0001

Official name : HOFOR CC HOLDING A/S
Registration number : 45265293
Postal address : Ørestads Boulevard 35
Town : Copenhagen S
Postcode : 2300
Country subdivision (NUTS) : Byen København ( DK011 )
Country : Denmark
Telephone : +4533953395
Internet address : www.hofor.dk
Roles of this organisation :
Buyer
Organisation signing the contract

8.1 ORG-0002

Official name : Carbon Removals Denmark A/S
Size of the economic operator : Micro, small, or medium
Registration number : 45187942
Postal address : C/O DLA Piper Law Firm P/S
Town : Copenhagen
Postcode : 2100 Copenhagen Ø
Country subdivision (NUTS) : Byen København ( DK011 )
Country : Denmark
Roles of this organisation :
Tenderer
Winner of these lots : LOT-0001

8.1 ORG-0003

Official name : The Danish Complaints Board for Public Procurement
Registration number : 37795526
Postal address : Nævnenes Hus, Toldboden 2
Town : Viborg
Postcode : 8800
Country subdivision (NUTS) : Vestjylland ( DK041 )
Country : Denmark
Internet address : www.klfu.naevneneshus.dk
Roles of this organisation :
Review organisation

8.1 ORG-0000

Official name : Publications Office of the European Union
Registration number : PUBL
Town : Luxembourg
Postcode : 2417
Country subdivision (NUTS) : Luxembourg ( LU000 )
Country : Luxembourg
Telephone : +352 29291
Internet address : https://op.europa.eu
Roles of this organisation :
TED eSender

Notice information

Notice identifier/version : e85111a0-292c-4c69-91a2-95a318781691 - 01
Form type : Result
Notice type : Contract or concession award notice – standard regime
Notice dispatch date : 28/07/2025 16:39 +00:00
Languages in which this notice is officially available : English
Notice publication number : 00498336-2025
OJ S issue number : 144/2025
Publication date : 30/07/2025