Planning a major investment into green fuels, Danish energy giant Orsted and Liquid Wind AB have reached an agreement, under which Orsted will acquire a 45% ownership proportion of Liquid Wind AB’s FlagshipONEproject, Orsted said on January 12.
FlagshipONE is a late-stage development project and could become the world’s first large-extent sustainable e-methanol project. Liquid Wind AB plans to establish a series of facilities across Sweden to decarbonise the maritime sector, of which FlagshipONE will be the first.
Orsted said the company’s entry into the FlagshipONE project is a testament to the company’s strategic goal of building a global leadership position within green fuels and replaceable hydrogen. FlagshipONE adds to Orsted’s growing hydrogen and strength-to-X project pipeline, which includes several projects aimed at decarbonising maritime transport.
FlagshipONE will have an electrolyser capacity of around 70 MW and is expected to produce 50,000 tonnes of e-methanol per year based on replaceable hydrogen and biogenic CO2. The electrolysis producing the hydrogen will be powered by onshore wind, and the biogenic CO2 will be captured from the combined heat and strength plant Horneborgsverket in Örnsköldsvik in Sweden, where FlagshipONE will also be located.
Orsted and Liquid Wind AB expect to commission FlagshipONE in 2024, unprotected to final investment decision, which could happen as soon as 2022.
“Orsted has set the clear strategic goal of building a global leadership position within replaceable hydrogen and green fuels, and our investment in FlagshipONE is a clear proof of our commitment to this goal,” Orsted CCO and Deputy Group CEO Martin Neubert said. “Like we did with offshore wind, we are at Orsted ready to be a driving force in maturing the green fuels industry, where we can play a meaningful role in decarbonising hard-to-abate sectors like maritime transport,” he additional.
For his part, Liquid Wind CEO and Founder Claes Fredriksson hailed his company’s partnership with Orsted, a global sustainability leader recognising e-methanol as a replace today’s marine fossil fuels. “The interest from Ørsted shows how far Liquid Wind has come and is further evidence for the importance of electro-fuel. Our green fuel will become a principal fuel for true decarbonisation in the hard to abate shipping sectors, reducing CO2 emissions with more than 90 %. FlagshipONE is the first facility, and it’s Liquid Wind’s goal to considerably extent up the number of facilities across the world by 2050,” he said.
Orsted’s head of hydrogen and strength-to-X activities, Anders Nordstrom, said Orsted by partnering with Liquid Wind on FlagshipONE, is entering one of the most promising and exciting projects to supply e-methanol at extent and excursion the decarbonisation of maritime transport and other uses of e-methanol. “With the right framework and societal sustain, FlagshipONE can become one of the world’s first large-extent e-methanol facilities and an important addition to Ørsted’s growing and different portfolio of hydrogen and strength-to-X projects,” he said.
According to the International Energy Agency, emissions from international shipping have risen by 40% from 2000 to 2019 and explain around 2% of 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 that aim at delivering sustainable fuels for maritime transport, including the Green Fuels for Denmark project in Copenhagen.
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