Danish power company Ørsted and Swedish renewable energy solutions firm Liquid Wind AB have signed an agreement, under which Ørsted will acquire a 45% ownership share of Liquid Wind AB’s FlagshipONE e-methanol project in Sweden.
Liquid Wind intends to set up facilities in Sweden to decarbonize the maritime sector and the FlagshipONE project is the first such project.
The International Energy Agency estimates that emissions from international shipping have increased by 40% between 2000 and 2019. These emissions account for approximately 2% of the total global energy-related emissions.
FlagshipONE will have an electrolyzer capacity of around 70 MW. It is expected to produce 50,000 tons of e-methanol annually based on renewable hydrogen and biogenic CO2.
The electrolysis will be powered by onshore wind and the biogenic CO2 will be captured from a combined heat and power plant.
Ørsted CCO and Deputy Group CEO Martin Neubert 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.”
The firms intend to commission the project in 2024, subject to a final investment decision, which may happen in 2022.
E-methanol is produced from combining green hydrogen and carbon dioxide captured from industrial resources. This type of methanol still releases emissions, but far less CO2, nitrogen oxide and other pollutants than conventional maritime fuels, according to reports.
Close to 80 percent of the world's goods move via shipping. Ships traditionally have burned diesel or other types of marine gas oil.
