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Released October 21, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Danish wind energy major Ørsted (Fredericia, Denmark) has exited a number of major green hydrogen projects in Denmark following a review of its power-to-X portfolio.
The company was a key partner in many of Denmark's largest proposed projects but has now withdrawn from the "Green Fuels for Denmark" alliance and project, located at the Avedore combined heat and power station near Copenhagen. It aims to produce 1.3 gigawatts (GW) of electrolyser capacity to produce green fuels including green hydrogen and e-methanol for domestic airlines and shipping as well as for export. It will be powered by 2-3 GW of planned North Sea offshore wind capacity. The project, which includes partners from across a number of industry sectors such as shipping company AP Moller-Maersk (Copenhagen, Denmark), airport operator Copenhagen Airports A/S (Copenhagen, Denmark) and hydrogen production company Everfuel A/S (Herning, Denmark), is working on the first phase now, a 10-megawatt (MW) facility scheduled to open next year, followed by rapid expansion to 100 MW.
Orsted was also a key partner in the H2RES demonstration project at the Avedore plant, which it has also dropped. The 2-MW plant, powered by two 3.6-MW offshore wind turbines, is designed to test the best way to combine an efficient electrolyser with the fluctuating power supply from offshore wind. Capable of producing up to about 1,000 kilograms of renewable hydrogen a day, it would have been used to fuel zero-emission road transport in the Greater Copenhagen area and in Zeeland.
"The [H2RES] consortium has jointly decided not to continue the project since a sub-scale demonstration plant like this no longer has a relevance in the current market," Robert Duncalf, head of Ørsted's business development and P2X activities in Europe, told Windpower Monthly. "The learnings from H2RES will play a key role for the partners in the consortium in the development of future green hydrogen solutions and all parties in the consortium see fundamental potential in green hydrogen and will individually continue to explore opportunities in the area as the market matures."
It has also shelved a proposed US$1 billion green hydrogen project with Danish renewable energy developer Skovgaard Energy (Lemvig, Denmark) in Idomlund in the western part of Denmark, which will be the landfall for a number of large offshore wind projects in the North Sea. The first phase of the project was to have an electrolysis capacity of 150 MW and be powered by onshore wind and solar PV.
Orsted's decision came just months after it announced its exit from one of Europe's largest planned commercial-scale e-methanol facilities, the FlagshipONE power-to-x project in Ornskoldsvik, Sweden. The FlagshipONE plant was scheduled to be operational next year, using a 70-MW electrolyser to produce up to 55,000 tonnes of e-methanol per year for the shipping industry. Orsted cited slow industrialization of the technology and difficulties in securing offtake deals for the fuels as the key reasons. For additional information, see August 26, 2024, article--Ørsted Cancels e-Methanol Plant Construction.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company was a key partner in many of Denmark's largest proposed projects but has now withdrawn from the "Green Fuels for Denmark" alliance and project, located at the Avedore combined heat and power station near Copenhagen. It aims to produce 1.3 gigawatts (GW) of electrolyser capacity to produce green fuels including green hydrogen and e-methanol for domestic airlines and shipping as well as for export. It will be powered by 2-3 GW of planned North Sea offshore wind capacity. The project, which includes partners from across a number of industry sectors such as shipping company AP Moller-Maersk (Copenhagen, Denmark), airport operator Copenhagen Airports A/S (Copenhagen, Denmark) and hydrogen production company Everfuel A/S (Herning, Denmark), is working on the first phase now, a 10-megawatt (MW) facility scheduled to open next year, followed by rapid expansion to 100 MW.
Orsted was also a key partner in the H2RES demonstration project at the Avedore plant, which it has also dropped. The 2-MW plant, powered by two 3.6-MW offshore wind turbines, is designed to test the best way to combine an efficient electrolyser with the fluctuating power supply from offshore wind. Capable of producing up to about 1,000 kilograms of renewable hydrogen a day, it would have been used to fuel zero-emission road transport in the Greater Copenhagen area and in Zeeland.
"The [H2RES] consortium has jointly decided not to continue the project since a sub-scale demonstration plant like this no longer has a relevance in the current market," Robert Duncalf, head of Ørsted's business development and P2X activities in Europe, told Windpower Monthly. "The learnings from H2RES will play a key role for the partners in the consortium in the development of future green hydrogen solutions and all parties in the consortium see fundamental potential in green hydrogen and will individually continue to explore opportunities in the area as the market matures."
It has also shelved a proposed US$1 billion green hydrogen project with Danish renewable energy developer Skovgaard Energy (Lemvig, Denmark) in Idomlund in the western part of Denmark, which will be the landfall for a number of large offshore wind projects in the North Sea. The first phase of the project was to have an electrolysis capacity of 150 MW and be powered by onshore wind and solar PV.
Orsted's decision came just months after it announced its exit from one of Europe's largest planned commercial-scale e-methanol facilities, the FlagshipONE power-to-x project in Ornskoldsvik, Sweden. The FlagshipONE plant was scheduled to be operational next year, using a 70-MW electrolyser to produce up to 55,000 tonnes of e-methanol per year for the shipping industry. Orsted cited slow industrialization of the technology and difficulties in securing offtake deals for the fuels as the key reasons. For additional information, see August 26, 2024, article--Ørsted Cancels e-Methanol Plant Construction.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
