Energy company Ørsted has announced its decision to pull out of the FlagshipONE project, under which it was building a large plant intended to produce methanol for ship fuel using renewable energy
The plant, in Northern Sweden, was expected to produce about 50,000t/yr of e-methanol from renewable energy and captured CO2, and was scheduled to begin production in 2025. The project had been acquired by Ørsted in 2022 from e-fuels company Liquid Wind.
Mads Nipper, Ørsted Group President said: “The liquid e-fuel market in Europe is developing more slowly than expected, and we have taken the strategic decision to de-prioritise our efforts within the market and cease the development of FlagshipONE.”
The reasoning behind the decision to defer FlagshipONE is said to be the slow take-up of methanol fuel by the shipping industry, and te difficulty in securing long-term contracts to supply the fuel at a viable price.
Ørsted says it will focus on renewable hydrogen, which is seen as essential for decarbonising key industries in Europe and is closer to the group’s core business.
Image: The proposed FlagshipONE e-methanol plant (source: Ørsted)
