Ørsted and HOFOR enter into agreement on green power for groundbreaking hydrogen project
As part of the agreement, Ørsted and HOFOR will work towards enabling Ørsted to offtake the power produced at Aflandshage, which is HOFOR's 250 MW offshore wind farm project in the Oresund Strait. At the same time, it has been agreed that HOFOR may place the offshore wind farm's substation at the premises of Avedøre Power Station. Together, Ørsted and HOFOR will seek to realise both technical and trading-related synergies between the two projects. The future cooperation and the concrete design of the link between the wind farm and the PtX plant is subject to all regulatory as well as grid connection matters falling into place.
Provided that a framework is established in Denmark promoting the development of sustainable fuels, the power from Aflandshage could enable parts of Green Fuels for Denmark's second phase of 250 MW and meet the power demand for the project's first phase.
In addition to Green Fuels for Denmark, the agreement on Aflandshage could potentially also cover the power demand of the electrolysis plant that will supply hydrogen to DFDS's proposed hydrogen-powered ferry between Copenhagen and Oslo, if this project is realised.
Aflandshage is being developed, and subject to regulatory approvals, HOFOR expects the project to deliver first power in 2024/2025. The power can be brought onshore at Avedøre Power Station, which is owned by Ørsted, and where Green Fuels for Denmark could be located.
Anders Nordstrøm, Head of Ørsted's hydrogen activities, says:
"The European ambitions for renewable hydrogen and sustainable fuels have increased dramatically over the past year, mainly outside of Denmark, but as a country, we can still play a significant role in this part of the global green transformation. Green Fuels for Denmark is a large-scale flagship project ideally suited to realising Denmark's great potential as a producer of sustainable fuels for heavy transport. The agreement with HOFOR underlines the partnership's firm belief that Green Fuels for Denmark can contribute significantly to reducing greenhouse gas emissions and create a new industrial stronghold for Denmark."
Jan Kauffmann, CFO of HOFOR, agrees. He emphasises that the determining factors for HOFOR have been the broad collaboration on the green energy of the future and the visionary coupling of sectors.
"If we're to succeed with the green transformation of our combined energy supply, it's important that major Danish players work together on shared solutions. Not least when it makes a lot of sense for both parties. That's why we also see great potential in this long-term agreement," Jan Kauffmann says, continuing:
"In my view, the next step will be to investigate how the excess heat generated by Power-to-X production can be incorporated into the heating system in the Greater Copenhagen area. At HOFOR, we see a strong possibility for creating a stable supply of district heating at a competitive price. Our district heating system needs this, and at the same time, we enter into a cooperation with the largest possible impact on our climate targets."
The production of renewable hydrogen and sustainable fuels has enormous potential and can reduce carbon emissions from the heavy transport sector significantly. Sustainable fuels are more expensive to produce than fossil-based fuels. To reduce the price, the production of sustainable fuels must be matured and build-out at industrial scale, and the costs must be reduced - just as we have seen with renewable energy technologies, such as offshore wind, onshore wind, and solar PV over the past decade. For this to be feasible, the industry must join forces with governments to create a framework that provides incentives for private investments in large-scale sustainable fuel production.
About Green Fuels for Denmark
Green Fuels for Denmark is Denmark's most ambitious vision for the large-scale production of sustainable fuels and has a decarbonisation potential of 850,000 tonnes. Behind the project is a partnership consisting of A.P. Moller - Maersk, DSV Panalpina, DFDS, SAS, Copenhagen Airports, and Ørsted.
Nel, Haldor Topsøe, and Everfuel have partnered up on the first phase of GFDK and on developing the second phase. In addition, COWI is a knowledge partner on the project. The project is backed by Molslinjen, the City of Copenhagen, and the Capital Region of Denmark.
The vision for the partnership is that Green Fuels for Denmark will be built in three phases with approximately 10 MW, 250 MW, and 1,300 MW in total electrolysis capacity, respectively.
Ørsted will continue to pursue opportunities to secure green power from additional sources for Green Fuels for Denmark towards the commissioning of the planned energy hub at the Danish island Bornholm.
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants, and provides energy products to its customers. Ørsted ranks as the world's most sustainable energy company in Corporate Knights' 2021 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs 6,311 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2020, the group's revenue was DKK 52.6 billion (EUR 7.1 billion). Visit orsted.com or follow us on Facebook, LinkedIn, Instagram, and Twitter.
HOFOR's goal is to create sustainable towns and cities based on climate-friendly and environmentally safe supply solutions. We want to create competitive and carbon-neutral energy solutions, and we are committed to ensuring synergies between the utility sectors and to creating innovation in partnerships. As a publicly owned multi-utility company, HOFOR supplies clean drinking water to a million Danes, processes wastewater, and supplies Copenhagen with climate-friendly district heating, town gas, and district cooling. Furthermore, HOFOR owns the Amager Power Station, supplying carbon-neutral heat and power from sustainable biomass. Currently, HOFOR is also constructing new large-scale wind and solar farms throughout Denmark.