Danish renewable energy developer Ørsted has broken ground on its FlagshipONE e-methanol project in Örnsköldsvik, Sweden.
The project is sited adjacent to the biomass-fired combined heat and power plant, Hörneborgsverket, operated by Övik Energi. Ørsted acquired full ownership of FlagshipONE from Liquid Wind, the original developer of the project, in December 2022.
According to Ørsted, the groundbreaking signifies the initiation of a new era in green shipping, where a growing fleet of methanol-powered vessels will be supplied by large-scale methanol production facilities. It is estimated that there are currently over 110 e-methanol vessels either ordered or in operation, reflecting an increase from 80 vessels at the end of 2022.
FlagshipONE is expected to become operational in 2025 and produce 50,000 tons of e-methanol per year. The project will utilize renewable electricity and biogenic carbon dioxide captured from Hörneborgsverket to produce e-methanol. Moreover, it will leverage steam, process water, and cooling water from Hörneborgsverket, while any excess heat generated during the e-methanol production process will be redirected to Övik Energi and integrated into its district heating supply.
Partner companies involved in the project include Siemens Energy, Carbon Clean, and Topsoe, who will deliver the electrolyzers and control system, the carbon capture equipment, and the methanol synthesis equipment, respectively, Ørsted says.
Additionally, Klimatklivet, a division of the Swedish Environmental Protection Agency, has supported FlagshipONE with SEK151 million (about $14 million U.S., at current exchange rates).
In addition to FlagshipONE, Ørsted is also developing the 300,000 tons/year ‘Project Star’ in the U.S. Gulf Coast area and the ‘Green Fuels for Denmark’ project in Copenhagen, which is also expected to produce significant volumes of e-methanol to enable the decarbonization of shipping.
Shipping container logistics firm A.P. Moller – Maersk has partnered with CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel to increase the global production capacity of green methanol.
The firm intends to source at least 730,000 tons annually by the end of 2025. The production capacity it expects by 2025 will support its requirement of green methanol for the 12 green container vessels on order and more.