The Danish Environmental Protection Agency (Miljøstyrelsen) has decided to conclude its claim for compensation of 58 million Danish kroner (approximately 8.7 million USD) against DSH Recycling, a subsidiary of the bankrupt Nordic Waste. The agency assesses that there is no possibility of recovering the amount from the company, which is currently undergoing restructuring. The 58 million kroner represents the costs associated with the cleanup following a landslide near Ølst, close to the city of Randers.
Since the landslide occurred in January, the Environmental Protection Agency has been working to minimize environmental damage and address contamination risks. Despite the assessment from the Danish State’s legal advisor (Kammeradvokaten) indicating that both Randers Municipality (Randers Kommune) and the state have claims against DSH Recycling, the Environmental Protection Agency does not believe that the company is capable of paying the owed amount, either partially or in full.
DSH Recycling, which has previously faced criminal charges for illegal soil disposal filed by the Central Denmark Region (Region Midtjylland), has declined to comment on the Environmental Protection Agency’s decision. The company’s appointed restructuring administrator has also refused to make any statements regarding the matter.
Nordic Waste, DSH Recycling’s sister company, went bankrupt following the extensive environmental incident, and the cleanup operations were transferred to Randers Municipality in December of last year. In May, the municipality estimated that the total cleanup costs could exceed 600 million kroner (approximately 88 million USD). Randers Municipality maintains that DSH Recycling can be held liable for the cleanup costs and has issued a new decision to the company for consultation.
The withdrawal of the Environmental Protection Agency’s claim leaves the issue of accountability and financial coverage for the cleanup unresolved, while municipal and state entities continue to pursue their claims against DSH Recycling.