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. The first will have 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, which can enable a fast development of the project, if the regulatory work goes according to plan.
The facility will be located in Idomlund near Holstebro in the western part of Denmark, which is an optimal strategic location enabling significant scaling of the project.
Idomlund is expected to be the landfall for parts of the huge offshore wind build-out in the North Sea, which enables easy access to very large renewable energy resources. The project’s proximity to large-scale offshore wind will allow the companies to leverage their respective generation portfolios to create additional value. The scalable nature of the project also fits well with Ørsted’s phased approach to constructing power-to-X projects.
If the necessary offshore wind capacity and hydrogen infrastructure in and out of Denmark are established, the facility’s electrolysis capacity could be increased to more than 3 GW and the hydrogen exported.
Ørsted chief operating officer power-to-X Anders Nordstrøm 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."
Ørsted and Skovgaard Energy are both deeply involved in the development of power-to-X projects. Skovgaard Energy and partners are building Denmark’s first dynamic power-to-X plant for the production of green ammonia and Ørsted has constructed a 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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