Ørsted to buy stake in Liquid Wind's e-methanol project in Sweden

Ørsted A/S is expanding into green fuels by acquiring a minority stake in what could become the world's first large-scale sustainable e-methanol project.

The Danish wind giant reached a deal to acquire a 45% interest in Liquid Wind AB's FlagshipONE e-methanol project in Sweden. Financial terms of the deal were not disclosed.

According to Liquid Wind's website, e-methanol is a liquid, carbon neutral fuel produced by capturing CO2 and combining it with renewable hydrogen and water. It can be blended with petrol to decrease the use of fossil fuels.

The proposed FlagshipONE project will have an electrolyzer capacity of around 70 MW. It is expected to produce 50,000 tonnes of e-methanol based on renewable hydrogen and biogenic carbon dioxide, according to a Jan. 12 news release.

The electrolysis producing the hydrogen will be powered by onshore wind, and the biogenic CO2 will be captured from the Hörneborgsverket combined heat and power plant in Örnsköldsvik. The companies expect to commission FlagshipONE in 2024, subject to final decision that could happen as soon as 2022.

"With the right framework and societal support, FlagshipONE can become one of the world's first large-scale e-methanol facilities and an important addition to Ørsted's growing and diverse portfolio of hydrogen and power-to-X projects," said Anders Nordstrøm, head of Ørsted's hydrogen and power-to-X activities.

Liquid Wind plans to establish a series of e-methanol facilities across Sweden to help decarbonize the country's maritime sector. Sweden has set compulsory blending targets to gradually increase the renewable component of fuel, the company said.