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Danish firms target FID on major sustainable transport fuel project

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A group of Danish companies are joining forces to steer a project aimed at producing clean fuels for transport in Copenhagen.

One of the world’s biggest electrolyser and sustainable fuel making facilities could be created as a result.

Partners will seek public co-funding for a feasibility study, which could lead to a final investment decision being made as early as next year.

Copenhagen Airports, Scandinavian Airlines, transport and logistics firms Moller-Maersk, DSV Panalpina and DFDS, and renewable energy firm Orsted are involved.

If it goes ahead, the project would be located in the Greater Copenhagen Area and involve three stages.

The first stage, which could be operational by 2023, comprises a 10MW electrolyser which can produce renewable hydrogen used directly to fuel buses and trucks.

Stage two comprises a 250MW electrolyser facility which could be operational by 2027 when the first offshore wind power from the island of Bornholm could be delivered.

This facility would combine renewable hydrogen with carbon capture to produce renewable methanol for maritime transport and renewable jet fuel.

Stage three, which could be operational by 2030, would upgrade the project’s electrolyser capacity to 1.3GW and supply more than 250,000 tonnes of sustainable fuels to be used in buses, trucks, maritime vessels and airplanes.

The project has the potential to displace 5% of fossil fuels at Copenhagen Airport by 2027 and 30% by 2030.

Orsted chief executive Henrik Poulsen said: “Decarbonising the road, maritime, and aviation sectors is key to bringing our economies around the world to net-zero emissions by 2050.

“Our vision to produce sustainable fuels in the Greater Copenhagen area will deliver the necessary industrial scaling to drive the needed cost-out towards making renewable fuels competitive with fossil fuels.

“With the right policy framework in place, this project could be a defining leap forward for the production of sustainable fuels in Denmark, which will further reinforce Denmark’s role as a global leader in technologies and business models for a sustainable future.”

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