Ørsted takes final investment decision on green hydrogen project
Ørsted has taken a final investment decision (FID) on the H2RES green hydrogen demonstration project in Denmark and expects first hydrogen production in late 2021.
The project, to be built at Avedøre Holme in Copenhagen, will comprise a 2 MW electrolysis plant with appurtenant hydrogen storage, with the production powered by Ørsted’s two Siemens Gamesa 3.6 MW offshore wind turbines at the Avedøre Power Station.
H2RES will produce up to around 1,000 kilograms of green hydrogen daily, which will be used to fuel road transport in Greater Copenhagen and on Zealand.
In December 2019, Ørsted and six industrial partners were awarded DKK 34.6 million (EUR 4.6 million) in funding for the demonstration project. For H2RES, the company has partnered with Everfuel Europe, NEL Hydrogen, GreenHydrogen, DSV Panalpina, Hydrogen Denmark, and Energinet Elsystemansvar.
“Renewable hydrogen will be a cornerstone in achieving Denmark’s ambitious decarbonisation target. H2RES is an example of how public co-funding coupled with a committed hydrogen industry and ambitious offtakers can drive the decarbonisation of the transport sector”, said Anders Nordstrøm, Vice President and Head of Ørsted’s hydrogen activities. “H2RES is a small but important step towards large-scale renewable hydrogen production, and it will allow us to demonstrate how offshore wind combined with onshore electrolysis can offer decarbonisation beyond direct electrification”.
Ørsted has entered partnerships with different consortia on seven green hydrogen projects over the past 18 months. The projects are located in Denmark, Germany, the Netherlands, and the United Kingdom.
The company, which is the biggest offshore wind developer, said that the practically unlimited global offshore wind resources were ideally suited to power renewable hydrogen electrolysis.
“We see renewable hydrogen and other sustainable fuels as cornerstones in reaching net-zero emissions by 2050, and H2RES will contribute with key learnings to turn Europe’s ambitious build-out targets for renewable hydrogen into a new industrial success story”, said Martin Neubert, Executive Vice President and CEO of Ørsted Offshore. “With the right framework in place that incentivises the shift away from fossil fuels, renewable hydrogen can decarbonise transport and heavy industry, which is paramount to creating a world that runs entirely on green energy”.