The first major E-methanol project is progressing with Ørsted Investment
The work of developing what could be the world’s first large-scale sustainable e-methanol project is progressing as the shipping industry looks for sources of alternative fuels. The Danish energy company Ørsted, which wants to build its leading position in green fuels and renewable hydrogen, will invest in FlagshipONE, Liquid Wind’s late-stage development project that could be put into operation as early as 2024.
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 land-based wind power and the biogenic CO2 will be captured from the combined heat and power plant Hörneborgsverket in Örnsköldsvik in Sweden, where FlagshipONE will also be located.
“By collaborating with Liquid Wind on FlagshipONE, we are embarking on one of the most promising and exciting projects to deliver e-methanol on a large scale and drive the decarbonisation of maritime transport and other uses of e-methanol,” says Anders Nordstrøm , head of Ørsted’s hydrogen and Power-to-X activities. “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.”
The race is underway among a number of actors who are each trying to develop the alternative fuels that the shipping sector is looking for to meet the emerging rules to reduce greenhouse gas emissions. Methanol has been seen as one of the new solutions in the short term, which was strengthened by the fact that Maersk’s orders became the first large shipping company to place orders for new methanol – powered vessels. Maersk has expressed concern that the infrastructure and supply of methanol is not yet sufficiently developed to be able to operate the new vessels planned for 2024 on methanol, but it is also hoped that its construction of the vessels will help drive the development of delivery and bunkering operations.
Ørsted is involved in several projects aimed at delivering sustainable fuels. FlagshipONE adds Ørsted’s growing hydrogen and Power-to-X project pipeline, which includes several projects aimed at reducing carbon dioxide emissions at sea. According to the terms of the agreement with Liquid Wind, Ørsted will acquire a 45 percent ownership interest in the e-methanol project. The companies expect to complete a final investment decision as soon as 2022, which could lead to commissioning in 2024.
“Our green fuel will be a dominant fuel for real carbonization in the difficult-to-combat shipping sectors, which reduces CO2 emissions by more than 90 percent,” predicts Claes Fredriksson, CEO and founder of Liquid Wind. FlagshipONE is the first facility, but Liquid Wind’s ambition is to establish a number of facilities throughout Sweden to reduce carbon dioxide emissions in the maritime sector.