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Ørsted enters into collaboration with Liquid Wind in green fuels with investment in large-scale e-methanol project in Sweden

1/13/2022

Press Release - Ørsted

Ørsted has entered into an agreement with Liquid Wind AB to acquire a 45% ownership interest in Liquid Wind AB's e-methanol project FlagshipONE. FlagshipONE is a late-stage development project and could become the world's first large-scale e-methanol project. Liquid Wind AB plans to establish a number of facilities around Sweden to phase out fossil fuels in the shipping sector, of which FlagshipONE will be the first.

Ørsted's entry into the FlagshipONE project confirms the company's strategic ambition to build a globally leading position in sustainable fuels and renewable hydrogen. In addition to FlagshipONE, Ørsted is involved in a growing group of projects in renewable hydrogen and Power-to-X - several of which have the phasing out of fossil fuels in shipping as their goal.

FlagshipONE will have an electrolyzer with a capacity of about 70 MW and is expected to produce 50,000 tonnes of e-methanol per year from renewable hydrogen and biogenic CO2. The technology means that renewable electricity from wind power and carbon dioxide is converted into ship fuel. Green hydrogen is generated from wind power and combined with recycled biogenic carbon dioxide from the combined heat and power plant Hörneborgsverket in Örnsköldsvik, where FlagshipONE will also be located.

Ørsted and Liquid Wind AB are expected to commission FlagshipONE in 2024, subject to a final investment decision that may come as early as 2022.

Martin Neubert, Deputy CEO and CCO at Ørsted, says:

“Ørsted has a strategic ambition to build a globally leading position in sustainable fuels and renewable hydrogen, and our investment in FlagshipONE is proof that we are acting on our ambition. Just as we did in offshore wind power, we at Ørsted are also ready to become an important driving force in sustainable fuels. Here we can play an important role by phasing out fossil fuels in the shipping sector, which is one of the most difficult to change. ”

Claes Fredriksson, CEO and founder of Liquid Wind AB, says:

“We are very pleased with the opportunity to enter into a partnership with Ørsted, a global leader in sustainability that also values e-methanol as a replacement for today's fossil fuels in the shipping sector. Ørsted's interest shows how far Liquid Wind has come and is proof of the key role that electric fuel will play in the green transition. Our climate-neutral marine fuel will enable the green transition of the shipping sector by reducing carbon dioxide emissions by more than 90%. FlagshipONE will be our first facility, and Liquid Wind's ambition is to significantly scale up the number of facilities worldwide by 2050. "

Anders Nordstrøm, head of Ørsted's hydrogen and Power-to-X operations, says:

“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 promote the phasing out of fossil fuels in shipping as well as other sectors. With the right regulatory framework and community support, FlagshipONE can become one of the world's first large-scale e-methanol plants and an important strengthening of Ørsted's growing portfolio of projects in hydrogen and Power-to-X. ”

According to the International Energy Agency (IEA), emissions from shipping have increased by 40% from 2000 to 2019 and today account for 2% of the world's energy-related greenhouse gas emissions. The shipping sector urgently needs new types of fuels in order to reduce its climate impact, and Ørsted is involved in several projects aimed at delivering sustainable fuels for maritime transport, including the Green Fuels for Denmark project in Copenhagen.