New project to explore Direct Air Capture and green fuel production in the Varde area

The partners behind Nybro CCUS gathered at the project launch. The project will explore the potential for integrating carbon capture, Power-to-X, renewable energy and existing energy infrastructure at Nybro near Varde.
The Just Transition Fund is investing DKK 15 million in a new innovation project that will investigate how CO₂ capture directly from the air (DAC), renewable energy, biogas and Power-to-X can be integrated at Nybro near Varde.
Nybro near Varde is today a central point in Denmark’s energy infrastructure. A new project will now investigate how the area’s existing and future resources can be connected in a green energy symbiosis.
The innovation project will develop analyses, technical models and business cases for future solutions within CO₂ capture, Power-to-X, green fuels and better utilisation of local energy and utility resources.
The project brings together the partners Ørsted, DIN Forsyning, Kirt x Thomsen and the University of Southern Denmark (SDU) and is facilitated by Energy Cluster Denmark, with a total budget of DKK 22.8 million and DKK 15 million in support from the Just Transition Fund.
“Denmark needs solutions that both support green growth and help us reach our climate targets. With Nybro CCUS, we bring together expertise from energy, research and industry to investigate how CO₂ capture, Power-to-X, utilities and existing energy infrastructure can work together in practice,” says Glenda Napier, CEO of Energy Cluster Denmark.
The aim is not to establish specific facilities here and now, but to create a solid basis for deciding which solutions make technical and economic sense to work further with.
Interaction between data centres and CO₂ capture directly from the air to be investigated
One of the tracks in the project is the interaction between data centres and CO₂ capture directly from the air.
Among other things, the project will investigate how waste heat from future data centres can be used in low-temperature DAC – a technology that captures CO₂ directly from the atmosphere.
According to Henrik Wenzel, Professor at the University of Southern Denmark, it is precisely the connection between the different systems that makes the project interesting:
“The data centres provide the waste heat, the energy system provides the renewable electricity, and the infrastructure around Nybro provides access to transport and storage of the captured CO₂.”
In the project, the University of Southern Denmark will among other things contribute research-based knowledge and energy system models that can shed light on the potential of the interaction between the technologies.
An energy hub with several possible value chains
The Nybro area contains a number of resources and infrastructure that may become relevant in future green value chains. These include electricity, gas, biogas, biomass, CO₂ handling, waste heat and utility systems such as water, wastewater, cooling and process heat.
“Nybro is a central hub in Denmark’s energy infrastructure and plays an important role in security of supply. The project provides an opportunity to investigate how existing facilities can work together with new green technologies across sectors and thereby strengthen the overall energy supply,” says Stella Bücker, Lead Business Developer at Ørsted Infrastructure Assets.
“Although Ørsted is not involved in developing new projects within green fuel production and CO₂ capture, it is an obvious choice for us to contribute our knowledge of energy systems and infrastructure, so that we can help ensure a solid and reliable basis for the future Nybro symbiosis. The second track of the project therefore investigates the possibilities of producing syncrude as a green fuel based on biogas, hydrogen and CO₂ – using the existing infrastructure at Nybro as a starting point.”
The result will be a project catalogue with assessments of scope, scale and economics for the solutions being investigated. The catalogue will provide companies, investors and public-sector stakeholders with a better basis for assessing which green value chains may in the longer term be relevant to develop further in the area.
The project runs from May 2026 to October 2028.
Facts
- Project name: Nybro CCUS – business and commercial potential for CCUS
- Budget: DKK 22.8 million
- Support: DKK 15 million from the Just Transition Fund
- Partners: Ørsted, University of Southern Denmark, DIN Forsyning, Kirt x Thomsen and Energy Cluster Denmark.

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