Orsted and Liquid Wind AB have reached an agreement, under which Orsted will acquire a 45 % ownership share of Liquid Wind AB’s FlagshipONE e-methanol project. FlagshipONE is a late-stage development project and could become the world’s first large-scale sustainable e-methanol project. Liquid Wind AB plans to establish a series of facilities across Sweden to decarbonize the maritime sector, of which FlagshipONE will be the first.
Orsted’s entry into the FlagshipONE project is a testament to the company’s strategic ambition of building a global leadership position within green fuels and renewable hydrogen. FlagshipONE adds to Orsted’s growing hydrogen and Power-to-X project pipeline, which includes several projects aimed at decarbonizing 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 renewable 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 power plant Hörneborgsverket in Örnsköldsvik in Sweden, where FlagshipONE will also be located.
Orsted and Liquid Wind AB expect to commission FlagshipONE in 2024, subject to final investment decision, which could happen as soon as 2022.
Martin Neubert, CCO and Deputy Group CEO of Orsted, says:
“Orsted 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 Orsted ready to be a driving force in maturing the green fuels industry, where we can play a significant role in decarbonizing hard-to-abate sectors like maritime transport.”
Claes Fredriksson, CEO and Founder of Liquid Wind, says:
”We are extremely pleased with the opportunity of engaging in a partnership with Orsted, a global sustainability leader recognizing e-methanol as a replacement for today's marine fossil fuels. The interest from Orsted shows how far Liquid Wind has come and is further evidence for the importance of electro-fuel. Our green fuel will become a dominant fuel for true decarbonization 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 ambition to significantly scale up the number of facilities across the world by 2050.”
Anders Nordstrøm, Head of Orsted’s hydrogen and Power-to-X activities, says:
“By partnering with Liquid Wind on FlagshipONE, we’re entering one of the most promising and exciting projects to supply e-methanol at scale and drive the decarbonization of maritime transport and other uses of e-methanol. With the right framework and societal support, FlagshipONE can become one of the world’s first large-scale e-methanol facilities and an important addition to Orsted’s growing and diverse portfolio of hydrogen and Power-to-X projects.”
According to the International Energy Agency, emissions from international shipping have risen by 40 % from 2000 to 2019 and account for around 2 % of total global energy related greenhouse gas emissions today. 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.