Danish Green Fuel Consortium Gets Green Light From European Commission

DFDS is among the partners in the project, along with Maersk (DFDS file image)

Published Jul 18, 2022 10:18 PM by The Maritime Executive

A large-scale Danish project for green hydrogen production for shipping has received the green light for government subsidies, bringing one of the world's most ambitious electrolysis projects closer to fruition. The Ørsted-led Green Fuels for Denmark consortium has received the European Commission's Important Project of Common European Interest (IPCEI) designation, allowing it to receive state aid. 
In addition to offshore wind powerhouse Ørsted, the group behind the project includes Maersk and DFDS, as well as logistics company DSV and air carrier SAS. 

“IPCEI is a key enabler for creating a green and energy independent Europe, as it will unlock substantial amounts of funding to mature the Power-to-X industry, a central alternative to imported fossil fuels,” said Olivia Breese, SVP for Power-to-X at Ørsted.

The planned project will be located in the Copenhagen area, and its initial production capacity would be small - just 1,000 tonnes a year of hydrogen for over-the-road transport in 2023. However, it would grow quickly and shift focus by 2025, when it would begin putting out 50,000 tonnes a year of green methanol for bunker fuel and e-kerosene for jet fuel. Its capacity would hit 100,000 tonnes a year in 2027 and - eventually, at full buildout - a total of 275,000 tonnes. 

The production from the fully scaled facility would reduce annual carbon emissions by 850,000 tonnes. Ørsted would leverage offshore wind power from Rønne Banke off the island of Bornholm to provide the 1.3 gigawatts of energy the complex would need at full buildout. 

"The ability to establish a vision of an industrial-scale sustainable fuel production facility is due to the power of partnerships," said DFDS CEO Torben Carlsen in a statement at the time of the project announcement. "The cooperation of fuel users and producers along with scientists and society is the fastest way to make sustainable fuels available as realistic alternatives to the fossil fuels."

DFDS is also a partner in the Power-to-Ammonia project, based on the west coast of Denmark. It aims to produce around 50,000 tonnes of green ammonia - a leading alternative to green methanol - as early as 2026.