A.P. Moller - Maersk, Copenhagen Airports, DSV Panalpina, DFDS, SAS and Ørsted have joined forces to develop an ‘industrial-scale’ facility to produce sustainable fuels for road, maritime and air transport in the Copenhagen area.
In a statement issued today (26 May), the companies said that the hydrogen and e-fuel production facility could be ready ‘as soon as 2023’ and when ‘fully scaled-up by 2030’, it could ‘deliver more than 250,000 tonnes of sustainable fuel for buses, trucks, maritime vessels, and airplanes every year’.
The statement added: ‘If realised as envisaged, the project will be located in the Greater Copenhagen Area and could supply renewable hydrogen for zero-emission buses tendered by Movia and heavy-duty trucks managed by DSV Panalpina, renewable methanol for A.P. Moller - Maersk vessels and renewable jet fuel (e-kerosene) for SAS airplanes and air transport out of Copenhagen Airports. The project will require a large-scale supply of renewable electricity, which could potentially come from offshore wind power produced at Rønne Banke off the island of Bornholm.’
The companies said that, at the moment, ‘sustainable fuels come at a higher cost than fossil-based fuels’ – but operating at ‘industrial scale’ (together with advances in technology) will help to make them more competitive. They also the project as ‘a way to combine the dual objectives of accelerating the green transformation and providing economic stimulus to the Danish economy post the COVID-19 crisis’.
The plans is to develop the project in three stages.
The first stage, which the partner companies say ‘could be operational by 2023’, comprises a 10MW electrolyser which can produce renewable hydrogen used directly to fuel buses and trucks.
The second stage comprises a 250MW electrolyser facility which could be operational by 2027 when the first offshore wind power from Bornholm could be delivered. This facility would combine the production of renewable hydrogen with sustainable carbon capture from point-sources in the Greater Copenhagen area to produce renewable methanol for maritime transport and renewable jet-fuel (e-kerosene) for the aviation sector.
The third stage, which could be operational by 2030, would upgrade the project's electrolyser capacity to 1.3GW and capture more sustainable CO2, enough to supply more than 250,000 tonnes of sustainable fuels to be used in buses, trucks, maritime vessels and airplanes.
The companies said that they will now be talking to the regulatory authorities and seeking public co-funding to conduct a full feasibility study of the project. They added: ‘If the feasibility study confirms the viability of the project vision, a final investment decision for the first stage of the project could likely be taken as soon as 2021.’
Søren Skou, CEO, A.P. Moller - Maersk, commented: ‘Decarbonising the transport sector is a significant and complex task that requires collaborative contributions from every company, organisation, and country. This project provides a first step in the massive transformation to produce and distribute sustainable energy. In Denmark, we have an opportunity now to accelerate the green transformation and take lead in powering the future with sustainable energy and I am pleased that we can contribute with concrete actions. We need many such projects both in Denmark and around the globe to achieve our ambition in Maersk of becoming carbon neutral by 2050.’