Danish companies team-up on an alternative fuels project

Photo: DFDS

Copenhagen Airports, A.P. Moller - Maersk, DSV Panalpina, DFDS, SAS and Ørsted joined forces in order to develop a new hydrogen and e-fuel production facility, planned to open in 2023. The plant will provide sustainable fuels for road, maritime and air transport in the Copenhagen area.

Once fully operational by 2030, the project could deliver over 250k t of sustainable fuel for busses, trucks, maritime vessels and airplanes on a yearly basis. With targeted production based on a total electrolyser capacity of 1.3 gigawatts, the facility could become the largest in the world of its kind. It would reduce annual carbon emissions by 850k t.

COWI and BCG act as knowledge partners for the project, and the project is supported by the Municipality of Copenhagen in line with Copenhagen's policies for decarbonisation. The partners believe, that the project could act as a catalyst for similar initiatives in other parts of Denmark, as well as internationally.

Planned location for the plant is in the Greater Copenhagen Area. Produced fuels could supply renewable hydrogen for zero-emission busses tendered by Movia and heavy-duty trucks managed by DSV Panalpina, renewable methanol for A.P. Moller - Maersk vessels and renewable jet fuel (e-kerosene) for SAS airplanes and air transport out of Copenhagen Airports. The project will require a large-scale supply of renewable electricity, which could potentially come from offshore wind power produced at Rønne Banke off the island of Bornholm.

The project will be developed in three phases. Phase one, aimed to become operational in 2023, comprises a 10MW electrolyser which can produce renewable hydrogen used directly to fuel busses and trucks. Phase two comprises a 250MW electrolyser facility which could be operational by 2027 and supply renewable methanol for maritime transport and renewable jet-fuel (e-kerosene) for the aviation sector. Phase three, aimed to become operational in 2030, would upgrade the project’s electrolyser capacity to 1.3GW and reach the production and emission reduction goals mentioned earlier.

Next items on the to-do list for the project is working out the necessary framework and policies with the regulatory authorities, and seeking public co-funding in order to conduct a full feasibility study. Should the latter confirm the viability of the project, a final investment decision for phase one could be made as soon as 2021.