A muscular partnership of Danish shipping and logistics providers and a multinational power company – representing the demand and supply side of sustainable fuels – have joined forces to realise what could become one of the world’s largest electrolyser and sustainable fuel production facilities.
The vision of the partners – which include Copenhagen Airports, A P Moller - Maersk, DSV Panalpina, DFDS, SAS and Danish power company Ørsted - is to develop a new hydrogen and e-fuel production facility as soon as 2023.
“This ambitious partnership fits well with our long-term targets to reduce emissions and find sustainable solutions for our industry,” said DSV Panalpina CEO Jens Bjørn Andersen.
When fully scaled up by 2030, the project could deliver more than 250 000 tonnes of sustainable fuel for buses, trucks, maritime vessels, and airplanes every year. Production would potentially be based on a total electrolyser capacity of 1.3 gigawatts, which would likely make it one of the world’s largest facilities of its kind. The production from the fully scaled facility could reduce annual carbon emissions by 850 000 tonnes.
Today, such sustainable fuels come at a higher cost than fossil-based fuels. To become competitive with fossil fuels, the production of sustainable fuels will need to be matured, built at industrial scale, and go through a cost-out journey similar to what has been seen over the past decade in other renewable energy technologies, says Ørsted CEO Henrik Poulsen.