Orsted and Liquid Wind are investing in e-methanol projects in Sweden
The Danish energy giant Orsted and Liquid Wind AB are planning a major investment in green fuels and have reached an agreement, according to which Orsted will acquire a 45% stake in Liquid Wind AB’s FlagshipONE project, Orsted said on 12 January.
FlagshipONE is a late-stage development project and could become the world’s first large-scale sustainable e-methanol project. Liquid Wind AB plans to establish a series of facilities throughout Sweden to reduce carbon dioxide emissions in the maritime sector, of which FlagshipONE will be the first.
Orsted said the company’s entry into the FlagshipONE project is proof of the company’s strategic ambition to build a global leading position in green fuels and renewable hydrogen. FlagshipONE adds Orsted’s growing hydrogen and Power-to-X project pipeline, which includes several projects aimed at reducing carbon dioxide emissions at sea.
FlagshipONE will have an electrolyzer capacity of approximately 70 MW and is expected to produce 50,000 tonnes of e-methanol per year based on renewable hydrogen and biogenic CO2. The electrolysis that produces hydrogen will be powered by onshore wind power and the biogenic CO2 will be captured from the combined heat and power plant Horneborgsverket in Örnsköldsvik in Sweden, where FlagshipONE will also be located.
Orsted and Liquid Wind AB expect to use FlagshipONE 2024, subject to the final investment decision, which can take place as soon as 2022.
“Orsted has set the clear strategic ambition to build a global leading position in renewable hydrogen and green fuels, and our investment in FlagshipONE is clear proof of our commitment to this ambition,” Orsted CCO and Vice President Martin Neubert sa. “As we did with offshore wind power, we at Örsted are ready to be a driving force in maturing the green fuel industry, where we can play a significant role in reducing carbon dioxide emissions in sectors that are difficult to reduce, such as maritime transport,” he added. he.
For his part, Liquid Wind is the CEO and founder Claes Fredriksson praised his company’s partnership with Orsted, a global sustainability leader that recognizes e-methanol as a replacement for today’s marine fossil fuels. “The interest from Ørsted shows how far Liquid Wind has come and is further proof of the importance of electric fuel. Our green fuel will be a dominant fuel for real decarbonisation in the difficult-to-fight shipping sectors, which reduces CO2 emissions by more than 90%. FlagshipONE is the first plant, and it is Liquid Wind’s ambition to significantly scale up the number of plants worldwide by 2050, he says.
Orsted’s Head of Hydrogen and Power-to-X Activities, Anders Nordström, said Orsted by partnering with Liquid Wind on FlagshipONE, embarking on one of the most promising and exciting projects to deliver large-scale e-methanol and drive the decarbonisation of maritime transport and other uses of e-methanol. “With the right framework and social support, FlagshipONE can become one of the world’s first large-scale e-methanol plants and an important addition to Ørsted’s growing and versatile portfolio of hydrogen and Power-to-X projects,” he said.
According to the International Energy Agency, emissions from international shipping have increased by 40% from 2000 to 2019 and account for about 2% of the total global energy-related greenhouse gas emissions today, Orsted said. The sector urgently needs new types of fuel to reduce its climate impact, and Orsted is involved in several projects aimed at delivering sustainable fuels for maritime transport, including the Green Fuels for Denmark project in Copenhagen.