In order to produce green hydrogen, which is seen as the foundation of the transition to cleaner energy, Orsted plans to spend heavily on a large-scale facility in Denmark.
An estimate for the initial investment in the so-called Power-to-X facility is from 1 to 5 billion Danish crowns ($141 to $705 million).
A device known as “Power-to-X” transforms excess electricity, typically from renewable sources like solar and wind, into storable materials or fuels like hydrogen or methane.
The project is being developed by Orsted and Skovgaard Energy, and the first phase will have a 150-megawatt electrolysis capacity (MW).
According to a release, the capacity might rise to more than 3 GW “if the appropriate offshore wind capacity and hydrogen infrastructure in and out of Denmark are developed.”
According to the Danish engineering firm Topsoe, around 100 GW of electrolysis capacity would be required to produce the 10 million tonnes that the European Commission hopes to achieve by 2030 as part of efforts to stop relying on Russian fossil fuels.
