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Ørsted’s FlagshipONE E-Methanol Project Breaks Ground in Sweden

Anela DoksoBy Anela Dokso26/05/20233 Mins Read
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Örsted, a leading renewable energy company, has commenced construction on FlagshipONE, Europe’s largest e-methanol project, at an event in Örnsköldsvik, Northern Sweden.

This groundbreaking project not only signifies the start of construction but also represents a significant step toward a greener future for the shipping industry. With the growing demand for methanol-powered vessels and the introduction of new regulations like FuelEU Maritime, the establishment of large-scale methanol production facilities becomes crucial. FlagshipONE is set to begin production in 2025, producing 50,000 tonnes of e-methanol annually.

The project was initially developed by Swedish e-fuels company Liquid Wind and will be situated adjacent to Övik Energi’s Hörneborgsverket combined heat and power plant in Örnsköldsvik. The groundbreaking event witnessed the participation of political representatives at the local, regional, national, and international levels, as well as representatives from partner companies such as Siemens Energy, Carbon Clean, and Topsoe. These companies will provide the electrolysers and control system, carbon capture equipment, and methanol synthesis equipment, respectively. Local companies are also involved in the project, and the operation of the plant will create direct and indirect employment opportunities in Örnsköldsvik.

Support for FlagshipONE has come from Klimatklivet, a part of the Swedish Environmental Protection Agency, which has provided SEK 151 million. The groundbreaking ceremony was conducted by esteemed individuals such as Anna Dahlberg, State Secretary to the Prime Minister of Sweden, and Claes Fredriksson, founder and CEO of Liquid Wind, among others. The event highlighted the importance of decarbonizing global maritime transport and emphasized Sweden’s potential to become a leading market for e-methanol production. Sweden’s abundance of renewable energy sources like onshore and offshore wind, coupled with its world-leading forest industry, makes it an ideal location for producing e-methanol.

Anders Nordstrøm, COO of Ørsted P2X, expressed enthusiasm for the pioneering nature of FlagshipONE, stating that it would usher in a new era for green shipping. He emphasized Ørsted’s commitment to spearheading the project and commended the collaboration with other leaders in the green fuel supply chain. Claes Fredriksson, CEO and founder of Liquid Wind, hailed the project as a significant milestone and envisioned it as the catalyst for further contributions to shipping’s decarbonization. Kristina Säfsten, CEO of Övik Energi, expressed delight at the milestone and highlighted the positive impact on both the local economy and carbon footprint.

The global shipping sector currently accounts for approximately 3% of global carbon emissions, making it a key area of focus for Ørsted as it expands its Power-to-X initiatives across Northern Europe and the US. FlagshipONE represents the first e-methanol project in Ørsted’s ambitious green fuel pipeline, with additional projects like ‘Project Star’ in the US Gulf Coast area and ‘Green Fuels for Denmark’ in Copenhagen also contributing to the decarbonization of shipping. The e-methanol production at FlagshipONE will utilize renewable electricity and biogenic carbon dioxide captured from the Hörneborgsverket plant. The project will also leverage steam, process water, cooling water from Hörneborgsverket, and surplus heat from the e-methanol production process to support Övik Energi’s district heating supply.

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