Ørsted, Liquid Wind collaborate to increase presence in sustainable fuels
Ørsted has entered into an agreement with Liquid Wind AB to purchase a 45% ownership interest in Liquid Wind AB's e-methanol project FlagshipONE. FlagshipONE is a late-stage development project that could become the world's first large-scale project in the field of sustainable e-methanol. In order to reduce CO2 emissions from shipping, Liquid Wind AB plans to establish a number of e-methanol plants in Sweden, of which FlagshipONE will be the first.
Ørsted's entry into the FlagshipONE project is proof of the company's strategic ambition to build a global leadership position in green fuels and renewable hydrogen (H2). FlagshipONE will be the latest addition to Ørsted's growing pipeline of projects within H2 and Power-to-X, several of which aim to reduce CO2 emissions from shipping.
FlagshipONE will have an electrolysis capacity of around 70 MW and is expected to be able to produce 50,000 tons of e-methanol per year based on renewable H2 and biogenic CO2. The H2 will be produced via electrolysis powered by electricity from onshore wind turbines, and the biogenic CO2 will be collected from the combined heat and power plant Hörneborgsverket in Örnsköldsvik, Sweden, where FlagshipONE will also be located.
Ørsted and Liquid Wind AB expect to commission FlagshipONE in 2024, if a FID is made, which is expected to happen as early as 2022.
Martin Neubert, Commercial Director and Deputy CEO of Ørsted, says: “Ørsted has the clear strategic ambition to build a global leading position in renewable H2 and green fuels, and our investment in FlagshipONE is clear proof that we want to realize our ambition. Just as we did with offshore wind, we at Ørsted are ready to be a driving force in the maturation of green fuels, where we can play a significant role in reducing CO2 emissions from shipping and other sectors where it is otherwise difficult.”
Claes Fredriksson, CEO and founder of Liquid Wind, says: “We are extremely pleased with the opportunity to enter into a partnership with Ørsted, a world-leading company in the field of sustainability, which also recognizes e-methanol as a substitute for today's fossil fuels for shipping. The interest from Ørsted shows how far Liquid Wind has come, and this is further evidence of the importance of e-fuels. Our green fuel will be a leader in ensuring real CO2 reductions in shipping and reducing CO2 emissions by more than 90%. FlaghipONE will be the first plant, and it is Liquid Wind's ambition to increase the number of plants significantly by 2050 globally. ”
Anders Nordstrøm, head of Ørsted's H2 and Power-to-X activities, says: "By joining forces with Liquid Wind on FlagshipONE, we will be part of one of the most promising projects in terms of supplying e-methanol on a large scale and boosting the green transition of shipping as well as other uses of e-methanol. With with the right framework conditions and support, FlagshipONE can become one of the world's first e-methanol plants on a large scale, as well as an important addition to Ørsted's growing and diverse portfolio of H2 and Power-to-X projects. ”
According to the International Energy Agency, CO2 emissions from international shipping have increased by 40% from 2000 to 2019 and today account for approximately 2% of total global, energy-related GHG emissions. In shipping, there is an urgent need for new types of fuels in order to reduce CO2 emissions, and Ørsted is involved in several projects that specifically aim to produce sustainable fuels for shipping. One of those projects is Green Fuels for Denmark in Copenhagen.
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