Orsted takes final investment decision on hydrogen project

Ørsted has taken a final investment decision on the Danish demonstration project, H2RES, which will power road transport.

The scheme, which will use offshore wind energy to produce renewable hydrogen, has already been awarded DKK 34.6 million (£4.1m) by the Energy Technology Development and Demonstration Programme for the development of the project to Ørsted, Everfuel Europe A/S, NEL Hydrogen A/S, Green Hydrogen Systems A/S, DSV Panalpina A/S, Hydrogen Denmark, and Energinet Elsystemansvar A/S.

The project, located at Avedøre Holme in Copenhagen, Denmark, is expected to produce its first hydrogen in late 2021 and will be Ørsted’s first renewable hydrogen project in operation. H2RES will have a capacity of 2 MW and produce up to around 1,000 kg of renewable hydrogen daily, which will be used to fuel road transport in Greater Copenhagen and on Zealand.

Martin Neubert, executive vice president and CEO of Ørsted Offshore, said: “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.

“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.”

Ørsted has over the past 18 months partnered with different consortia in seven renewable hydrogen projects in Denmark, Germany, the Netherlands, and the United Kingdom.

Anders Nordstrøm, vice president and head of Ørsted’s hydrogen activities, said: “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. 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.”

*image courtesy of Orsted

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