Ørsted takes stake in Swedish e-methanol project

Danish utility Ørsted is expanding its footprint in green fuels with the acquisition of a 45% stake in FlagshipONE e-methanol project, which Swedish power-to-fuel player Liquid Wind launched to decarbonise the maritime sector. 

The FlagshipONE, expected to be commissioned in 2024, with a final investment decision reached as soon as 2022, could become the world’s first large-scale sustainable e-methanol project, Ørsted said. 

The project is the first in a series of facilities Liquid Wind plans to establish across Sweden to deliver green fuel for shipping. The facility will have an electrolyser capacity of around 70 MW and is expected to produce 50,000 tonnes of e-methanol per year based on renewable hydrogen and biogenic CO2.

Martin Neubert, CCO and deputy group CEO of Ørsted, said: “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. 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.”

FlagshipONE adds to Ørsted’s growing hydrogen and power-to-X project pipeline. The Fredericia-based company is involved in several projects that aim at delivering sustainable fuels for shipping, including the Green Fuels for Denmark project in Copenhagen.

In August last year, compatriot shipping giant Maersk selected REintegrate, a subsidiary of the Danish renewable energy company European Energy, to supply carbon neutral e-methanol for its first methanol-ready vessel due for delivery in 2024. REintegrate will establish a facility in Denmark to produce around 10.000 tonnes of green methanol.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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