The gas pipeline between Zealand and Lolland-Falster has been ready since autumn 2024. The project cost one and a half billion kroner and was supposed to supply local and CO₂-emitting companies with climate-friendly energy.
But reality turned out differently. Only one company - Nordic Sugar - has connected. The rest have backed out after the connection price quadrupled. This has been criticised by both businesses and politicians and has led to questions in the Folketing. The Minister for Climate, Energy and Utilities, Lars Aagaard (M), has now responded - but without proposing changes.
Evida and Energinet
Evida is a state-owned company that owns and operates Denmark's entire gas distribution network. This means the pipes that deliver gas to businesses and private households. Evida is responsible for connections, maintenance, and expansion of the gas infrastructure - including the gas pipeline to Lolland-Falster.
Energinet is an independent public enterprise that owns and operates the main transmission network for electricity and gas in Denmark. Energinet ensures that energy is transported across the country - and between Denmark and abroad.
Minister refers to Evida
In his responses, the minister emphasises that the decision on the gas pipeline was made before his time. He places the responsibility for the economic conditions with Evida - the state's gas distributor - and refers to the company's handling of connection prices and payment model. The minister also points out that agreements have been made with two biogas plants, and that Evida is in dialogue with several potential customers. How concrete the interest is remains unclear.
“Deeply frustrating”
Dina Raabjerg, energy spokesperson for the Conservatives, has posed the questions to the minister. She calls the responses disappointing.
- I am not impressed with the responses that have come. It is deeply frustrating that we make these investments to strengthen the green transition and support companies' energy needs, and that there is so little interest in getting these companies connected, she says.
Based on this answers, she doubts that the minister understands the problems:
- I can indeed doubt whether the minister is aware that it is heavy CO₂-emitting companies that are not being connected, and that it is a problem for the green transition.
Companies backed out
Several local companies - including Metalcolour, Hardi, Raaco, and Maribo Asphalt Factory - were ready to connect to the gas pipeline. And several had signed contracts for it. When the decision about the gas pipeline was made, the message from Evida was that the connection prices would be affordable - albeit with reservations. The prices were subject to uncertainty and dependent on both technical conditions and how many companies could be connected simultaneously.
In 2023, Evida changed the terms for connection. Prices were increased, and at the same time, the payment model was altered. According to Evida, this was necessary to ensure a stable and economically sustainable gas system.
The consequence, however, has been that no new companies have come forward. And this also has a climate cost. The companies that wanted to join did so precisely to reduce their CO₂ emissions. Instead, they continue to use their current energy sources - which overall emit more CO₂ than gas from the Danish network, where almost 40 percent today consists of biogas. With access to the gas pipeline, the companies could have had a real opportunity to switch to an energy source with a lower climate impact.
'It should be possible to do better'
The Climate, Energy and Supply Committee has also asked the minister to consider the economic sustainability of the project. The question was, what consequences it has for the original business case if the gas pipeline is only used by Nordic Sugar. In his response, Lars Aagaard refers to both Evida and Energinet, who assess that it will not have a significant impact on the gas market as a whole. According to Energinet, the unused capacity corresponds to about 0.3 percent of the total amount in the Danish transmission network.
But for the Conservatives, the issue is not just about economics in a narrow sense. It is also about political credibility and responsibility in decision-making processes.
- I have a general frustration that everything ends up being four to five times more expensive because the assumptions constantly fall apart in the projects that get approved. We cannot continue to sustain this politically. It should be possible to do better, says energy spokesperson Dina Raabjerg.
