In this list
Agriculture | Coal | Electric Power | Energy Transition | Metals | Petrochemicals | Shipping

Denmark's CIP proposes 1 GW electrolyzer for green ammonia production at Esbjerg

Commodities | Energy | Electric Power | Renewables | Natural Gas

Hydrogen: Beyond the Hype

Electric Power

Platts Forward Curves – Gas and Power

Oil | Crude Oil | Coronavirus | Energy Transition | Macroeconomics

37th Asia Pacific Petroleum (APPEC 2021)

Agriculture | Biofuels | Oil | Refined Products

Brazil confirms lower biodiesel blend into diesel oil

Oil

Brent/Dubai spread an indicator to watch amid shifting crude oil flows

Denmark's CIP proposes 1 GW electrolyzer for green ammonia production at Esbjerg

Highlights

Leading shipping, agriculture firms involved

4 GW wind planned offshore West Denmark

Raft of giga-scale electrolyzers proposed

London — Copenhagen Infrastructure Partners has announced plans for what would be Europe's largest green ammonia production facility with a 1 GW electrolyzer at Esbjerg, the Danish fund said Feb. 23.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The Power-to-X facility will convert offshore wind power to ammonia used as fertilizer or as CO2-free fuel in the shipping industry, it said.

Excess heat from the electrolyzer plant will be used to provide heat for one third of households in Esbjerg, it added.

CIP signed a memorandum of understanding with leading Danish agriculture and shipping companies to develop the project.

Project companies include Arla, Danish Crown and DLG, some of Europe's biggest dairy and pork producers, as well as shipping companies Maersk and DFDS.

CIP also launched a new Energy Transition Fund for new and existing investors.

Next generation renewable energy infrastructure assets have become attractive as industrial scale investment opportunities, CIP said.

"More than 10 years ago, we were a first mover into renewable infrastructure investments including offshore wind. We are excited about the opportunity to continue investing with CIP at the forefront of the energy market developments," PensionDanmark CEO Torben Moger Pedersen said.

The Esbjerg project is planned to replace all imported fertilizers in Denmark, it added.

Hydrogen combined with nitrogen using the Haber-Bosch process forms ammonia, which when burned turns back into nitrogen and water with no CO2 emissions.

Ammonia production contributes to roughly 1.4% of global CO2 emissions, while shipping contributes around 2% globally.

For the shipping industry, there was a "very real sense of urgency in curbing emissions," container ship operator Maersk and ferry operator DFDS said in the statement.

Maersk plans to have its first carbon neutral vessel on the water by 2023, while DFDS is working on a hydrogen-fueled ferry by 2030.

Esbjerg mayor Jesper Frost Rasmussen said it was only natural, that this facility is placed in Esbjerg describing his town as the center of Europe's shipping of wind turbines over the past ten years.

"Our target is that Esbjerg is CO2-neutral in 2030," the mayor said.

Denmark's government plans a further expansion of offshore wind - currently tendering for the 1 GW Thor project just north of Esbjerg.

Denmark also decided to build an artificial island offshore the coast of Jytland with 3 GW wind by 2030.

Last year, CIP proposed a similar project in the Copenhagen area starting with a 10 MW electrolyzer 2023, rising to 250 MW by 2027 focusing more on road and air transport operators.

Giga-scale green hydrogen proposals have mushroomed in early 2021 with ammonia/fertilizer as well as steel making with little alternatives to decarbonize key areas of focus.

Sweden's H2 Green Steel on Feb. 23 proposed a green steel plant powered by a 800 MW electrolyzer near Lulea in northern Sweden. The estimated Eur2.5 billion project secured Eur50 million in a first phase of financing with a number of Swedish investors including Northvolt and Spotify founders.

Construction at a greenfield site could start 2022 pending a second round of financing in Q4 2021.

Last week, Statkraft and Norwegian fertilizer maker Yara signed an MoU to develop a 450 MW electrolyzer for green ammonia at Heroya on Norway's southeast coast.

S&P Global Platts offers a range of hydrogen pathway assessments.

The price of green hydrogen (Netherlands, alkaline electrolysis including capex) was assessed at Eur3.53/kg on Feb. 18 compared to Eur1.54/kg for so-called gray hydrogen (SMR without CCS including carbon and capex).

SCALING UP ELECTROLYZERS (selected project updates Q1 2021)

Project/Location
Capacity (MW)
Use
Developer
Start
Notes
Vienna-Schwechat, AT
10
Refinery
OMV
2023
Eur25 million investment
Puertollano, ES
20
Fertilizer
Iberdrola, Fertiberia
2021
Eur150 mln FIDed, scalable
Leuna, DE
24
Refinery
Linde
2022
Contract signed Jan. 2021
La Mede, FRA
40
Refinery
Total, Engie
2024
Applied for funding
Ludwigshafen, DE
50
ChemPark
BASF, Siemens Energy
tba
MoU Feb. 2021
Charleroi, BE
75
Lime kiln
Carmeuse, Engie, Electrochaeo
2025
IPCEI request for Eur150 mln
Bilbao, ESP
100
Refinery
Repsol consortium
2024
EU funding application
Sines, POR
100
Solar
Fusion Fuel
2024
EU funding application
Castellon, ESP
100
Ceramics
Enel GP, partners
2024
EU funding application
Hamburg-Moorburg, DE
100
Coal unit
Vattenfall, Shell
2025
LoI Jan. 2021
Rotterdam-Maasvlakte, NL
100
Coal unit
Uniper, PoR
2025
Feasibility study
Port Jerome Normandy, FR
200
ChemPark
Air Liquide, H2V, Siemens
2023
IPCEI request Feb. 2021
Heroya, NO
450
Fertilizer
Yara, Statkraft, Aker
2027
MoU signed Feb. 2021
Lulea, SW
800
Steel
Investors
2024
Proposal, first round of funding
Esbjerg, DK
1,000
Fertilizer, shipping
CIP, Arla, DFDS others
tba
MoU with sector leaders
Dunkirk, FR
1,000
Steel
Liberty Steel
tba
Proposal

Source: S&P Global Platts, developers

Platts Atlas of Energy Transition