Dong Energy Delays Switch to Biomass as It Awaits Rules on Tax

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Dong Energy A/S, Denmark’s largest utility, postponed switching a power station unit to burn biomass instead of coal, citing rules on the tax it will have to pay for producing heat from the renewable fuel.

The project faces a delay of one year while Dong waits for the Danish government to set the fees, outlined as part of a national energy plan agreed in March last year, Carsten Birkeland Kjaer, a company spokesman, said today by e-mail.