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The Gas Pipeline to Lolland-Falster: Now the Minister Must Answer

Billion-kroner project has only one customer - and now politicians want to know what went wrong

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It was intended as a green motorway for the industry. A gas pipeline costing one and a half billion kroner was supposed to deliver energy to companies on Lolland-Falster and help them move away from coal and oil. The pipeline was put into operation in the autumn of 2024 - but only one customer, Nordic Sugar, is connected. The rest have dropped out after the connection price was multiplied.

Although gas itself is not a green solution, almost 40 percent of the gas in the Danish network today consists of biogas. That is what is supposed to make the difference - if the companies connect, that is.

Now the matter has ended up on the table in the Climate, Energy, and Supply Committee.

Adopted in 2021

The gas pipeline was adopted in 2021 with ambitions for both green transition and local growth. The decision was made as part of the political energy agreements, where a broad majority wanted to help the industry - especially Nordic Sugar's sugar production - move away from coal. The production in Nakskov and Nykøbing had one of the country's highest CO₂ footprints, only surpassed by Aalborg Portland.

At the same time, there was a desire to promote Danish biogas and create the possibility for local plants on Lolland-Falster to deliver gas back to the network. A new gas pipeline from the Zealand gas network to Lolland and Falster was seen as a solution that could both ensure climate-friendly energy for the industry and support biogas production.

According to a response to the Danish Parliament, Evida had at that time made agreements with five companies - including Nordic Sugar - and an additional 15 companies had expressed interest.

Several of the companies, including Metalcolour, Maribo Asfaltfabrik, Raaco, and Hardi, proceeded with concrete plans and signed agreements for connection. But since then, the connection prices have exploded. What used to cost a couple of million turned into many. The companies withdrew, and today Nordic Sugar is the only customer.

The minister is pressed on the bill and the future 

The debacle over the gas pipeline has now prompted two questions from the Climate, Energy, and Utilities Committee, which wants Minister Lars Aagaard (M) to answer what went wrong - and what he intends to do.

The Conservative People's Party's Dina Raabjerg asks directly: “What will the minister do to bring the gas pipeline into play for the delivery of biogas to the industries?”

Additionally, she asks the minister to explain what economic consequences it has for the original business case if it turns out that “the gas pipeline is only used by Nordic Sugar.”

Both questions are posed based on FemernBusiness' revelations and must now be answered in writing by the minister.

Minister and Evida point fingers at each other 

Climate and Energy Minister Lars Aagaard has previously regretted that the pipeline became more expensive than expected, but has refrained from commenting on the specific connection prices. In previous responses to both the press and the Parliament, he refers to Evida, which is the state's gas distributor and responsible for pricing.

Evida states that prices were harmonised in 2023, and that customers now pay directly for their connection - in full, and at once. According to the company, this is necessary to ensure economic stability in the gas system.

Criticism from local political quarters 

Former Minister of Food and current Deputy Mayor of Lolland Municipality, Henrik Høegh (V), believes that Evida's pricing policy undermines the entire purpose of the gas pipeline.

- I am dissatisfied that a company like Evida is putting a stop to the green transition. It seems as if they now need to consolidate financially, and they are just passing that bill on, he has previously stated about the matter.

Søren Egge Rasmussen, climate and energy spokesperson for the Red-Green Alliance, has also criticised the project:

- It is important that we as legislators make it advantageous to connect to greener energy. And it does not seem that this has happened here.

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