Sunya Get smarter about energy transition
  • Home
  • Industry News
  • Newsletter
  • Podcast
  • Contact Us
Sunya
Industry News
August 20, 2024

Ørsted scraps flagship European green fuels project – FT

Newsfeed
Ørsted scraps flagship European green fuels project:

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Ørsted has scrapped plans for a European plant to develop green fuels, the latest sign that companies are pulling back from flagship projects designed to accelerate the world’s shift away from fossil fuels.

The world’s largest offshore wind developer said on Thursday that it would no longer build a plant to develop fuels for industries from shipping to aviation, saying that the still nascent market was growing more slowly than expected.

Work on the plant in the Swedish town of Örnsköldsvik began just over a year ago. It was intended to produce about 55,000 tons per year of e-methanol, which is made by combining hydrogen and carbon dioxide.

“The business case has deteriorated during maturation due to the inability to sign long-term offtake contracts at sustainable pricing and significantly higher project costs,” said Ørsted chief executive Mads Nipper.

Ørsted, blighted by a botched expansion into the US, joins companies including Shell and Fortescue in either abandoning, pausing or scaling back renewable energy projects.

Last month, Shell paused the construction of a plant in Rotterdam meant to convert waste into jet fuel and bio-diesel, saying it needed to “ensure future competitiveness given current market conditions”.

Ørsted’s decision on Örnsköldsvik left the Danish company with an impairment charge of DKr3.2bn ($470mn) in the first half, which also included the costs of a delay to an offshore wind farm in the US and other factors.

The company had previously described the plant in Örnsköldsvik as “the largest e-methanol project under construction in Europe”. 

Ørsted’s first-half results showed signs that it was beginning to recover from a bruising period in which an overly aggressive expansion in the US forced it to write down the value of several projects and suspend its dividend.

Nipper said he was “pleased” with the company’s half-year results, with operations performing well and higher earnings from offshore wind farms.

The company reported a pre-tax profit of DKr3.9bn, up from DKr2.4bn in the same period last year, although revenues fell to DKr34.2bn from DKr40.3bn.

It also raised its full-year forecasts for the offshore wind business, although the overall forecasts for the company were unchanged because of a weaker performance from its bioenergy division.

Analysts at RBC said it was a “strong performance” in offshore wind but said that would be tempered by the impairment in other parts of the business.

Ørsted took full control of the project in Örnsköldsvik, known as FlagshipONE, in 2022 as part of a strategy to try to take the lead in greener fuels. However, it is now trying to focus on high return projects.

TAGS: #industrynews
PREVIOUS ARTICLES
Home > Industry News
August 20, 2024

DOE Announces Over $127 Million to Advance Carbon Capture, Removal, and Conversion Test Centers

NEXT ARTICLES
Home > Industry News
August 20, 2024

Google – New ways we’re advancing our clean energy commitments in the U.S.

Comments are closed.
Related Post
August 8, 2024
Introducing Carbon Removal Standards Initiative (CRSI)
January 16, 2025
BeZero Carbon raises US$32 million Series C
October 10, 2024
CBRE Acquires NRG’s Renewable Advisory Group to
September 18, 2024
Arbor Signs Multi-year Agreement to Deliver Carbon

Recent Posts

  • TPG Rise Climate Acquires Aurora Energy Research from CGE Partners
  • rPlus Energies Secures Over $500 Million in Tax Equity Financing with RBC Community Investments for 800 MW Green River Energy Center
  • HONEYWELL, JOHNSON MATTHEY, GIDARA ENERGY AND SAMSUNG E&A FORM SAF TECHNOLOGY ALLIANCE
  • TAE Technologies Raises $150 Million in Latest Funding Round
  • Ormat Technologies Announces Strategic Leadership Changes

Archives

  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023

Categories

  • Industry News
  • Newsletter
  • Podcast
Scroll To Top
© Copyright 2024 Sunya Technologies Inc.