CIP announces plans for Power-to-X-facility

In: Windfarms
24/02/2021
CIP
Danish fund management company CIP has unveiled plans to establish Europe’s largest production facility of CO2-free green ammonia. The project will be located in the town of Esbjerg on the west coast of Denmark, where the Power-to-X-facility will convert power from offshore wind turbines to green ammonia.

This will be used by the agriculture sector as CO2-free green fertilizer and by the shipping industry as CO2-free green fuel. The excess heat will be used to provide heating for around one third of the local households in Esbjerg. The facility will consist of 1GW electrolysis. Ultimately, this is expected to reduce CO2-emissions by about 1.5 million tons yearly, the equivalent to removing 730,000 cars from the roads permanently.


The announcement was made by CIP in collaboration with members of the agriculture and shipping industries. Arla, Danish Crown and DLG are all part of the collaboration, and together they represent a significant part of the agricultural value chain: dairy, meat, and crops production. The project companies also include AP Moller – Maersk and DFDS, representing the shipping sector.


Together with CIP, they have signed a memorandum of understanding, in which the signatories commit themselves to work towards realising the establishment of the facility.


“With this project, we support further development to cut CO2 emission from agriculture and shipping in Denmark, through the use of CO2-free green fertilizers and green fuel. The agriculture and shipping industries are industries, which are embarking on a journey of decarbonization. Solutions such as Power-to-X are key for these industries to take the next big leap within the decarbonization,“
said Christian Skakkebæk, Senior Partner in CIP, responsible for the Energy Transition Fund.


“Power-to-X is a new chapter in attractive green investment opportunities. With CIP’s new Energy Transition Fund, we as potential investors are provided the opportunity to directly participate in the next phase of the energy transition. This is a natural evolution for us at PensionDanmark. More than 10 years ago, we were a first mover into renewable infrastructure investments including offshore wind. We are excited about the opportunity to continue investing with CIP at the forefront of the energy market developments, beginning with the project in Esbjerg, and will present the opportunity to our Board next month,”
said Torben Möger Pedersen, CEO PensionDanmark and chairman of the Danish Government’s Climate Partnership on Finance.


”With the current plans for expanding offshore wind, such as the Danish government’s plans for the world’s first energy island, we expect that this will bring growth and employment for our entire region – and it will place Denmark firmly on the global sustainability world map”
, added Jesper Frost Rasmussen, mayor of Esbjerg.


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