Ørsted scraps e-methanol bunker fuel production plant FlagshipONE

Danish multinational power company Ørsted on Thursday (15 August) said it has decided to pull the plug on the development of what was anticipated to be Europe’s largest e-methanol project, FlagshipONE, in Northern Sweden.

The decision, which came after about two years Ørsted announced its final investment decision (FID) on the FlagshipONE project, was revealed in the company’s interim report for the first half year of 2024. 

“The liquid e-fuel market in Europe is developing slower than expected, and we have taken the strategic decision to de-prioritise our efforts within the market and cease the development of FlagshipONE,” said Mads Nipper, Group President and CEO of Ørsted.

“We will continue our focus and development efforts within renewable hydrogen, which is essential for decarbonising key industries in Europe and closer to our core business.”

“We maintain a strong focus on de-risking project execution and prioritising growth options with the highest potential for value creation.”

Originally developed by the Swedish e-fuels company Liquid Wind, FlagshipONE was expected to start production in 2025 and produce 50,000 tonnes of e-methanol yearly. 

Related: Ørsted breaks ground on e-methanol bunker fuel production plant FlagshipONE
Related: Ørsted assumes full ownership of e-methanol bunker fuel production plant FlagshipONE
Related: Ørsted and ESVAGT order world’s first e-methanol powered service operation vessel
Related: Study: eMethanol well-to-wake CO2 emissions 94% lower when compared to fossil marine fuels
Related: Sweden: FlagshipONE applies environmental permit for e-methanol bunker fuel production plant

Photo credit: Ørsted
Published: 16 August, 2024