Ørsted becomes full owner of Europe's largest e-methanol project, takes FID

Denmark’s Ørsted A/S (CPH:ORSTED) has acquired the 55% it did not previously own in an e-methanol project in Sweden, FlagshipONE, set to create Europe’s largest green electrofuel facility for the global shipping industry.

The Danish energy group said on Tuesday that with the purchase it has taken a final investment decision on the scheme, without providing financial details. It has bought the stake from its partner Liquid Wind AB, which is the original developer of the FlagshipONE project.

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With an electrolyser of around 70 MW powered by onshore wind, FlagshipONE is expected to produce 50,000 tonnes of e-methanol per year in Ornskoldsvik, in northern Sweden’s Vasternorrland County. The plant will be installed on the ground of a biomass-fired combined heat and power complex operated by Ovik Energi. The fuel will be produced from green hydrogen and biogenic carbon dioxide (CO2) captured from Ovik Energy’s plant.

Ørsted, which joined the FlagshipONE project in January 2022 by purchasing a 45% interest, intends to kick off construction next spring. Commercial operations are planned to be launched in 2025.

Danish decarbonisation technology supplier Topsoe will deliver its technology for the project and deliver pre-assembled modules and equipment under an engineering, procurement and fabrication contract.

“E-methanol is the best solution currently available to decarbonise hard-to-electrify sectors like global shipping [..],” said Mads Nipper, CEO of Ørsted. The company noted, however, that green fuels for shipping currently come at a price premium compared to fossil-based alternatives but the industry will mature only when supportive regulation to incentivise demand is in place.

FlagshipONE will be Ørsted’s first commercial-scale Power-to-X facility.