Ørsted, Skovgaard Energy team up on ambitious Power-to-X project in Denmark

Danish energy company and offshore wind major Ørsted A/S (CPH:ORSTED) and compatriot renewables developer Skovgaard Energy will partner to develop a Power-to-X facility in Denmark that could reach more than 3 GW of electrolysis capacity, potentially becoming one of the largest in Europe.

The project is strategically located in Idomlund near Holstebro, western Denmark, and will be built in phases starting with a first stage with an expected electrolysis capacity of 150 MW that will be powered by onshore wind and solar. Skovgaard Energy has already started developing both the Power-to-X facility and related onshore wind and solar. The companies have signed a letter of intent to jointly continue development.

Do you know we have a daily hydrogen newsletter? Subscribe here for free!

The location is strategic as Idomlund is expected to be the landfall for some of the enormous offshore wind capacity that EU countries are looking to build in the North Sea, the companies explained in a statement today. This could enable significant scaling and large-scale hydrogen exports to support Europe’s green transformation.

"Few countries have as strong a potential to become a green energy exporter as Denmark due to its abundant and low-cost offshore wind resources, which are supplemented by onshore wind and solar PV,” said Ørsted P2X chief operating officer Anders Nordstrom. He added that “Ørsted is entering one of the most strategically advantageous projects to leverage the strong fit between large-scale renewable energy and Power-to-X.”