DENMARK TO OFFER GREEN SHIPPING FUEL BY 2025

Jul 18, 2022 | Marine fuel & lubricant news

Renewable energy company Ørsted says that the Green Fuels for Denmark project, which is being developed by Ørsted in partnership with Maersk and DFDS, alongside partners in heavy road transport and aviation, has been granted Important Project of Common European Interest (IPCEI) status by the European Commission.

The project will contribute to sustainable economic growth, job creation and the competitiveness of the European economy through the production of large quantities of sustainable green fuels for transport in the Copenhagen area. Funding, a share of a total DKK 850m shared between two Danish projects , is being made available by the Danish government. This will help enable the consortium behind Green Fuels for Denmark to develop the first phases of the project as part of the industrialisation of renewable hydrogen and green fuels needed to compete with fossil-based alternatives.

Olivia Breese, SVP and Head of Power-to-X, Ørsted, said: “We’re very pleased that Green Fuels for Denmark has been identified as being of common European interest. IPCEI is a key enabler for creating a green and energy independent Europe, as it will unlock substantial amounts of funding to mature the Power-to-X industry, a central alternative to imported fossil fuels. This and other IPCEI projects in our portfolio represent the second stage of our Power-to-X journey in which we start introducing large-scale facilities across four important sectors: refining, heavy industry, chemicals production and heavy transport. The scale-up of Power-to-X is dependent on the availability of large-scale renewable electricity, and we urge governments across Europe to dramatically accelerate the deployment of offshore and onshore wind and solar PV in order to deliver on Europe’s ambition to lead in Power-to-X.”

Power-to-X is emerging as a cornerstone technology in the fight against climate change in the hard-to-abate sectors and as a clear, homegrown European industrial strength. Ørsted has set its ambition to become a global leader in renewable hydrogen and green fuels, and the company is building a strong and diverse portfolio of Power-to-X projects across industries and geographies. When fully developed, Green Fuels for Denmark aims to reach a total electrolysis capacity of 1,300 MW. Shipping should begin to benefit in 2025 with Phase 2a, (100MW in total) with annual production of more than 50,000t of mainly e-methanol. At full capacity, the project will be able to produce 275,000t/yr of renewable fuels.

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