Danish energy company Orsted is to acquire a 45pc stake in rival developer Liquid Wind’s Flagship One e-methanol project in Sweden.

The development will use biogenic CO₂ captured from the Horneborgsverket combined heat and power plant in Ornskoldsvik, where Flagship One will be located. The CO₂ will be hydrogenated using green hydrogen produced by a 70MW electrolyser powered by onshore wind, and the resulting methanol sold as a low-carbon fuel for the shipping industry.

“We at Orsted are ready to be a driving force in maturing the green fuels industry, where we can play a significant role in decarbonising hard-to-abate sectors like maritime transport,” says Martin Neubert, deputy group CEO of Orsted.

Orsted and Liquid Wind expect to take FID in 2022, with commissioning beginning in 2024. The firms are targeting a number of sites for similar projects if Flagship One is deemed commercially successful.

Orsted is involved in several projects aiming to deliver sustainable fuels for maritime transport, including the Green Fuels for Denmark project in Copenhagen.

Viable option

Emissions from international shipping rose by 40pc from 2000 to 2019 and now account for around 2pc of global energy-related greenhouse gas (GHG) emissions, according to the IEA.

“We at Orsted are ready to be a driving force in maturing the green fuels industry” Neubert, Orsted

Methanol is seen as an option to reduce emissions from the hard-to-decarbonise shipping sector, offering 90pc reductions in some forms below conventional shipping fuels such as fuel oil.

So far, 12 methanol-powered ships are in operation globally, with another ten on order.

Shipping body the International Maritime Organization has set a goal to cut shipping emissions by 50pc by 2050 below 2008 levels, and its projections show use of the fuel is expected to grow as the industry strives to meet its GHG reduction targets.

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Author: Tom Young