Ørsted and Skovgaard Energy join forces for Power-to-X

By: Tom Russell 06/12/2022 Ørsted

General Hydrogen Windfarms

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 facility will be built in several phases with the first phase of the project having an expected electrolysis capacity of 150 MW and will be powered by onshore wind and solar PV. 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, which is an optimal strategic location enabling scaling of the project. Idomlund is expected to be the landfall for parts of the offshore wind build-out in the North Sea. The project’s proximity to large-scale offshore wind is expected to allow Ørsted and Skovgaard Energy to leverage their respective generation portfolios to create additional value.

According to the project partners, 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 3 GW, and the hydrogen can be exported on a large scale and contribute to the green transformation throughout Europe.

Anders Nordstrøm, Chief Operating Officer of Ørsted P2X, said: "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."

Niels Erik Madsen, CEO of Skovgaard Energy, said: "It’s a historically good day for the economic development of western Denmark. With this collaboration with Ørsted, we’re shifting gears and accelerating the local, national, and international green transition. We’re proud of the collaboration and of contributing to this development."

Ørsted and Skovgaard Energy are both deeply 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.

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