Ørsted and Skovgaard Energy have signed a declaration of intent of developing one of Denmark’s most suitably placed Power-to-X plants. The plant will be built in several phases, and it can thus play a central role in the start-up of the Danish Power-to-X industry as well as in the establishment of the export of large amounts of renewable hydrogen for the green transition of Europe.
The project’s first phase will have an estimated electrolysis capacity of 150MW, and will be run by wind turbines and solar parks. Skovgaard Energy has already begun development of both the Power-to-X project and the associated onshore wind and solar farms, which could enable the project to be implemented quickly if the regulatory work goes according to plan.
The Power-to-X plant will be located in Idomlund near Holstebro. Central and West Jutland is the birthplace of the Danish wind turbine industry, and for decades the area has been the center of Denmark’s green growth adventure. Central and West Jutland is also building a strong Power-to-X presence, and through the combination of Ørsted’s global energy expertise and Skovgaard Energy’s strong local roots, the Idomlund project can help support the development of the Power-to-X industry in Central and West Jutland.
In addition to the proximity to the local value chain, the Power-to-X project has an optimal strategic location that enables significant scaling of the project. Idomlund is expected to be the landing site for parts of the huge offshore wind development in the North Sea that Denmark has decided on, enabling easy access to very large renewable energy resources. If the necessary offshore wind capacity and hydrogen infrastructure is established in and out of Denmark, the plant could be expanded to more than 3 GW of electrolysis capacity, and the hydrogen could be exported on a large scale and contribute to the green transition across Europe. It will make a strong contribution to the politically agreed target of 4-6 GW of electrolysis capacity by 2030 and could make the plant one of the largest in Europe. The European Commission expects hundreds of billions of kroner to be invested in Power-to-X by 2030, and Denmark, with its excellent offshore wind resources, is well positioned to play a leading role in the development of this industry.
Anders Nordstrøm, COO of Ørsted P2X, says:
“For more than a generation, Central and West Jutland has been home to large parts of the green industry in Denmark. The good conditions for the expansion of onshore wind and solar cells and for bringing offshore wind power ashore mean that the region is well positioned to maintain its central role in the green transition of Denmark and the whole of Europe. I am pleased that we have found a strong and locally rooted partner in Skovgaard Energy, and I am confident that together we can make the Idomlund project a key project on Denmark’s Power-to-X journey.”
Niels Erik Madsen, CEO of Skovgaard Energy, says:
“This is a historically good day for business development in Central and West Jutland. By partnering with Ørsted, we’re shifting gears and accelerating the local, national and international green transition. We are proud to collaborate and to contribute to the development.”
Ørsted and Skovgaard Energy are both deeply involved in the development of Power-to-X in Denmark. Skovgaard Energy, together with a number of partners, is building Denmark’s first dynamic Power-to-X plant for the production of green ammonia, while Ørsted has built the ‘H2RES’ project at Avedøre Power Station in Copenhagen, which is also home to the flagship project ‘Green Fuels for Denmark’ with a potential of 1,300 MW.
For more information, please contact us:
Ørsted Media Relations
99 55 94 25
Skovgaard Energy Media Relations
Ørsted’s vision is to create a world that runs entirely on green energy. Ørsted develops, builds and operates offshore and onshore wind farms, bioenergy, solar PV and energy storage facilities, as well as renewable hydrogen and green fuels plants. In addition, Ørsted supplies energy products to its customers. Ørsted is the only energy company in the world with a science-based net-zero emissions target. The target is validated by the Science Based Targets initiative (SBTi). In addition, Ørsted aims for all new green energy projects it commissions to have a net-positive biodiversity impact by 2030. Ørsted is named the world’s most sustainable energy company in 2022 in Corporate Knights’ Global 100 index of the world’s most sustainable companies and ranks on the climate organization CDP’s A-list for its global leadership on climate change. Ørsted has around 7,700 employees and is headquartered in Denmark. Ørsted’s shares are listed on Nasdaq Copenhagen (Orsted). In 2021, the company had a turnover of DKK 77.7 billion (EUR 10.4 billion). You can read more about Ørsted at orsted.com or by following us on Facebook, LinkedIn, Instagram and Twitter.
About Skovgaard Energy
Skovgaard Energy believes that expanding and utilizing renewable energies, wind, solar, bioenergy and power to X is essential for our common future. At Skovgaard Energy, we take pride in harnessing nature’s resources to the fullest. That’s why we’re building the world’s first dynamic PtX system that can store solar and wind energy so nothing goes to waste. We will not only supply green power to the grid, but also green fuel for heavy transportation/industries, green fertilizer for agriculture and green heat for heating. Through in-house development and partnerships, Skovgaard Energy wants to be part of this journey.