Danish Power-to-X Flagship Project Receives IPCEI Funding
Ørsted-led Power-to-X project Green Fuels for Denmark has been awarded DKK 600 million (around USD 86 million) by the Danish Business Authority as part of Denmark’s participation in the Important Project of Common European Interest (IPCEI) programme.
The project, which is being developed by Ørsted in partnership with leading off-takers in heavy road transport (DSV), shipping (Maersk and DFDS), and aviation (Copenhagen Airports, SAS), secured the IPCEI status from the European Commission earlier this year.
The funding from the Danish Business Authority is seen as a strong contribution to Green Fuels for Denmark and will be used to realise the project’s first phases of 10 MW, 100 MW and 300 MW, respectively.
The first two phases will produce renewable hydrogen to power heavy road trucks and enough e-methanol to power an ocean-going vessel or several ferries. The consortium also plans to start the production of green synthetic jet fuel, e-kerosene, in the project’s second phase.
In Green Fuels for Denmark’s later phases, the project could produce a quantity of e-kerosene corresponding to 30 per cent of the pre-pandemic jet fuel consumption at Copenhagen Airport – far beyond the fuel needed for Danish domestic aviation, the developers said.
At the same time, the realisation of the full second phase depends on the availability of sufficient amounts of new green power, e.g. from offshore wind.
Subject to final investment decisions, the first phase could enter commercial operations in 2023.
Anders Nordstrøm, Chief Operating Officer, Ørsted Power-to-X, said: “We are very pleased to have received funding from the Danish government for Green Fuels for Denmark, and we would like to commend Denmark for taking a leading role in fighting climate change also in the hard-to-abate sectors.
“Power-to-X can become Denmark’s next green business stronghold, and with the right, supportive regulation, ‘Green Fuels for Denmark’ is uniquely placed to lead this second phase of Denmark’s green success story.”
Torben Carlsen, CEO of DFDS, added: “Transforming the shipping and logistics industry takes heavy investments in new technologies and infrastructures to accommodate high volumes of green power. DFDS is committed to having a green vessel in operations by 2025 and is already deploying electrical trucks on European roads. As an off-take partner in the Green Fuels for Denmark partnership, we highly welcome political ambition, will and actions that speed up the green transition.”