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Released January 26, 2022 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Danish renewables giant Ørsted (Gentofte, Denmark) has expanded into the growing green fuels sector by taking a major stake in what could be the first large-scale project producing e-methanol aimed at decarbonising the shipping sector.
The company has signed a deal for an undisclosed sum to take a 45% stake in the FlagshipONE e-methanol project in Sweden, owned by Liquid One. It is described as a "late-stage" development project and fits with Ørsted's goals of expanding beyond its leading role in offshore wind to green fuels and renewable hydrogen. FlagshipONE will have an electrolyser capacity of around 70 megawatts (MW) and is expected to produce 50,000 tonnes of e-methanol per year based on renewable hydrogen and biogenic CO2. The electrolysis producing the hydrogen will be powered by onshore wind while the biogenic CO2 will be captured from the combined heat and power plant (CHP) Hörneborgsverket in Örnsköldsvik, Sweden, where FlagshipONE also will be located. Liquid Wind has plans to establish a series of similar facilities across Sweden to decarbonise the maritime sector. The partners are expected to commission FlagshipONE in 2024, subject to a final investment decision that may come as early as this year.
"Ørsted has set the clear strategic ambition of building a global leadership position within renewable hydrogen and green fuels, and our investment in FlagshipONE is a clear proof of our commitment to this ambition," said Martin Neubert, chief commercial officer and deputy group chief executive officer of Ørsted. "Like we did with offshore wind, we are at Ørsted ready to be a driving force in maturing the green fuels industry, where we can play a significant role in decarbonising hard-to-abate sectors like maritime transport."
Claes Fredriksson, chief executive officer and founder of Liquid Wind, added: "The interest from Ørsted shows how far Liquid Wind has come and is further evidence for the importance of electro-fuel. Our green fuel will become a dominant fuel for true decarbonisation in the hard to abate shipping sectors, reducing CO2 emissions with more than 90%. FlagshipONE is the first facility, and it's Liquid Wind's ambition to significantly scale up the number of facilities across the world by 2050."
Last summer, Industrial Info reported that Ørsted had broken ground on its first renewable hydrogen energy project in Copenhagen, Denmark. The H2RES project will have a capacity of 2 MW and is located at the company's Avedøre Holme site, which is powered by two 3.6-MW offshore wind turbines. The goal of the project is to figure out the best way to combine an efficient electrolyser with the fluctuating power supply from offshore wind. The facility will produce up to about 1,000 kilograms of renewable hydrogen a day, which will be used to fuel zero-emission road transport in the Greater Copenhagen area and in Zeeland. For additional information, see June 9, 2021, article--Ørsted Breaks Ground on First Renewable Hydrogen Project.
Ørsted is involved in nine renewable hydrogen projects in Denmark, Germany, the Netherlands, and the U.K. to date, spanning demonstration projects like H2RES to industrial-scale versions like the potential 1,300-MW 'Green Fuels for Denmark' project with companies including Copenhagen Airports, A.P. Moller - Maersk (Copenhagen) and DSV Panalpina (Hedehusene, Denmark) among others. The first stage, which could be operational by 2023, comprises a 10-MW electrolyser which can produce renewable hydrogen to fuel buses and trucks. Stage Two will comprise a 250-MW electrolyser facility up and running by 2027, utilising the first power from the planned Bornholm offshore windfarm. It also will offer carbon capture from various locations in the Greater Copenhagen area to produce renewable methanol for maritime transport and renewable jet-fuel (e-kerosene) for the aviation sector. Stage Three, which could be operational by 2030, would upgrade the project's electrolyser capacity to 1.3 GW and capture more sustainable CO2, enough to supply more than 250,000 tonnes of sustainable fuels for use in buses, trucks, maritime vessels and aeroplanes.
In related news, fellow Danish company Maersk--also part of the 'Green Fuels for Denmark' project--could soon be a major customer for green hydrogen (H2) after it ordered 12 methanol-fuelled container vessels from Korean shipbuilder Hyundai Heavy Industries. The company said the ships--due for delivery in 2024 and 2025--will reduce its annual CO2 emissions by 1.5 million tonnes when the dozen ships set sail, powered by methanol produced from biogas/biomass or, renewable hydrogen combined with captured carbon dioxide (CO2).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The company has signed a deal for an undisclosed sum to take a 45% stake in the FlagshipONE e-methanol project in Sweden, owned by Liquid One. It is described as a "late-stage" development project and fits with Ørsted's goals of expanding beyond its leading role in offshore wind to green fuels and renewable hydrogen. FlagshipONE will have an electrolyser capacity of around 70 megawatts (MW) and is expected to produce 50,000 tonnes of e-methanol per year based on renewable hydrogen and biogenic CO2. The electrolysis producing the hydrogen will be powered by onshore wind while the biogenic CO2 will be captured from the combined heat and power plant (CHP) Hörneborgsverket in Örnsköldsvik, Sweden, where FlagshipONE also will be located. Liquid Wind has plans to establish a series of similar facilities across Sweden to decarbonise the maritime sector. The partners are expected to commission FlagshipONE in 2024, subject to a final investment decision that may come as early as this year.
"Ørsted has set the clear strategic ambition of building a global leadership position within renewable hydrogen and green fuels, and our investment in FlagshipONE is a clear proof of our commitment to this ambition," said Martin Neubert, chief commercial officer and deputy group chief executive officer of Ørsted. "Like we did with offshore wind, we are at Ørsted ready to be a driving force in maturing the green fuels industry, where we can play a significant role in decarbonising hard-to-abate sectors like maritime transport."
Claes Fredriksson, chief executive officer and founder of Liquid Wind, added: "The interest from Ørsted shows how far Liquid Wind has come and is further evidence for the importance of electro-fuel. Our green fuel will become a dominant fuel for true decarbonisation in the hard to abate shipping sectors, reducing CO2 emissions with more than 90%. FlagshipONE is the first facility, and it's Liquid Wind's ambition to significantly scale up the number of facilities across the world by 2050."
Last summer, Industrial Info reported that Ørsted had broken ground on its first renewable hydrogen energy project in Copenhagen, Denmark. The H2RES project will have a capacity of 2 MW and is located at the company's Avedøre Holme site, which is powered by two 3.6-MW offshore wind turbines. The goal of the project is to figure out the best way to combine an efficient electrolyser with the fluctuating power supply from offshore wind. The facility will produce up to about 1,000 kilograms of renewable hydrogen a day, which will be used to fuel zero-emission road transport in the Greater Copenhagen area and in Zeeland. For additional information, see June 9, 2021, article--Ørsted Breaks Ground on First Renewable Hydrogen Project.
Ørsted is involved in nine renewable hydrogen projects in Denmark, Germany, the Netherlands, and the U.K. to date, spanning demonstration projects like H2RES to industrial-scale versions like the potential 1,300-MW 'Green Fuels for Denmark' project with companies including Copenhagen Airports, A.P. Moller - Maersk (Copenhagen) and DSV Panalpina (Hedehusene, Denmark) among others. The first stage, which could be operational by 2023, comprises a 10-MW electrolyser which can produce renewable hydrogen to fuel buses and trucks. Stage Two will comprise a 250-MW electrolyser facility up and running by 2027, utilising the first power from the planned Bornholm offshore windfarm. It also will offer carbon capture from various locations in the Greater Copenhagen area to produce renewable methanol for maritime transport and renewable jet-fuel (e-kerosene) for the aviation sector. Stage Three, which could be operational by 2030, would upgrade the project's electrolyser capacity to 1.3 GW and capture more sustainable CO2, enough to supply more than 250,000 tonnes of sustainable fuels for use in buses, trucks, maritime vessels and aeroplanes.
In related news, fellow Danish company Maersk--also part of the 'Green Fuels for Denmark' project--could soon be a major customer for green hydrogen (H2) after it ordered 12 methanol-fuelled container vessels from Korean shipbuilder Hyundai Heavy Industries. The company said the ships--due for delivery in 2024 and 2025--will reduce its annual CO2 emissions by 1.5 million tonnes when the dozen ships set sail, powered by methanol produced from biogas/biomass or, renewable hydrogen combined with captured carbon dioxide (CO2).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
