Orsted plans carbon capture to turn hydrogen into green fuel in Denmark

Orsted plans to build a carbon capture facility to provide sustainable CO2 for the Green Fuels for Denmark Power-to-X facility in Greater Copenhagen.

To source CO2 for producing sustainable fuels, Orsted has identified its 100 MW straw-fired plant at the Avedore Power Station in Copenhagen. Subject to final investment decisions, the plant would be the company first carbon capture facility under the Green Fuels for Denmark project that will produce e-methanol and e-kerosene. The plant would have the potential to cut emission by 850k tonnes/year.

Orsted owns and operates Avedore Power Station. The plant is a combined heat and power plant composed of two wood pellet-fired units and a straw-fired unit supplying electricity to the Danish power grid and district heating to the Greater Copenhagen area.

Orsted has recently agreed with Hofer to offtake the power from Hofer’s planned 250 MW Aflandshage offshore wind farm to support the Green Fuels for Denmark project.

Green Fuels for Denmark is being named an Important Project of Common European Interest (IPCEI) in the EU programme initiated to help the hydrogen economy in the EU. Green Fuels for Denmark is envisaged to be built in phases, starting at around 10 MW, scaling up corresponding to the supply of electricity to reach 1.3 GW of total electrolysis capacity when fully developed.

In the first phase, Green Fuels for Denmark will produce hydrogen for heavy-duty road transport, where in the next stage, renewable hydrogen will be used with carbon capture to produce sustainable methanol for shipping and e-kerosene for aviation.

Orsted will explore optimising the electrolysis capacity of the second phase of Green Fuels for Denmark with the supply of renewable electricity. The straw-fired unit is fuelled by locally sourced agricultural by-products converting around 130k tonnes/year of straw to heat and power. The Power-to-X process would lead to around 260 MW district heating for the Greater Copenhagen area.

The production of renewable hydrogen and sustainable fuels can play a vital role in combating carbon emissions, such as heavy transport. These fuels are currently more expensive than fossil-based fuels. However, to cut the production cost of these fuels, the technology must be deployed at an industrial scale.

Anders Nordstrøm, head of Orsted’s hydrogen and Power-to-X activities, said, “Denmark can leverage its district heating systems, large sources of sustainable carbon, and massive offshore wind resources to create a new industrial stronghold and supply sustainable fuels to Danish logistics companies that are leading the green transformation of heavy transport.”

Ole Thomsen, Senior Vice President, Orsted Bioenergy, said, “Converting our power stations from fossil fuels to sustainable biomass has been a centre-piece in Orsted’s and Denmark’s green transformation. Utilising the potential for carbon capture at Avedre Power Station could potentially be a showcase for even further decarbonisation at our power stations.”