Ørsted is to acquire a 45% ownership share of Liquid Wind’s FlagshipONE, a late-stage development e-methanol project that could become the world’s first large-scale sustainable e-methanol operation.
To aid in the decarbonization of the maritime sector, Liquid Wind plans to establish a series of these facilities across Sweden, FlagshipONE being the first.
The FlagshipONE project will have an electrolyzer capacity of approximately 70MW. It is estimated that the site will be capable of producing 50,000 tons of e-methanol each year, based on renewable hydrogen and biogenic CO2. The electrolysis that produces the hydrogen will be powered by onshore wind; the biogenic CO2 will be captured at Hörneborgsverket, a combined heat and power plant in Örnsköldsvik, Sweden. FlagshipONE will be located on the same site.
Ørsted and Liquid Wind plan to commission the project in 2024 following a final investment decision, which could happen in 2022.
By joining the FlagshipONE project, Ørsted aims to strengthen its position in the green fuels and renewable hydrogen market while adding to its growing hydrogen and Power-to-X project pipeline, which includes other projects aimed at decarbonizing marine transport.
“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,” commented Martin Neubert, CCO and deputy group CEO at Ørsted. “Like we did with offshore wind, we at Ørsted are 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.”
”We are extremely pleased with the opportunity of engaging in a partnership with Ørsted, a global sustainability leader recognizing e-methanol as a replacement for today’s marine fossil fuels,” said Claes Fredriksson, CEO and founder of Liquid Wind. “The interest from Ørsted shows how far Liquid Wind has come and is further evidence of 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 by 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.”