Ørsted and Skovgaard Energy, a Danish renewable energy developer, have signed a letter of intent to jointly develop a Power-to-X facility in Denmark.
The goals of the project are to play a central role in the start-up of the Danish Power-to-X industry as well as in the establishment of large-scale exports of renewable hydrogen for the green transformation of Europe.
The facility will be built in several phases. The first phase of the project will have an expected electrolysis capacity of 150MW and will be powered by onshore wind and solar PV.
If the necessary offshore wind capacity and hydrogen infrastructure in and out of Denmark are established, the facility’s electrolysis capacity will be able to increase to more than 3GW, which could make the facility one of the largest in Europe, according to Ørsted.
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Skovgaard Energy has already commenced the development of both the Power-to-X project and the associated onshore wind and solar PV.
The Power-to-X facility will be located in Idomlund near Holstebro in the western part of Denmark. Idomlund is expected to be the landfall for parts of the huge offshore wind build-out in the North Sea, which enables easy access to very large renewable energy resources.
Anders Nordstrøm, chief operating officer of Ørsted P2X, says: “Europe needs green solutions at scale to fight climate change and to secure regional energy independence. 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. By partnering with Skovgaard Energy on the Idomlund project, Ørsted is entering one of the most strategically advantageous projects to leverage the strong fit between large-scale renewable energy and Power-to-X.”
Ørsted and Skovgaard Energy are both involved in the development of Power-to-X. Skovgaard Energy and partners are building Denmark’s first dynamic Power-to-X plant for the production of green ammonia, while Ørsted has constructed the renewable hydrogen project ‘H2RES’ at Avedøre Power Station in Copenhagen, where the flagship project ‘Green Fuels for Denmark’ is also located.
