Ørsted and Skovgaard Energy, a Danish renewable energy developer, have signed a letter of intent to cooperate on the development of a Power-to-X facility in one of Denmark’s most attractive sites. The facility will be constructed in stages and can thus play a crucial part in both the construction of a large-scale renewable hydrogen export industry for the green transformation of Europe as well as in the launch of the Danish Power-to-X industry.
The project’s initial phase will be powered by onshore wind and solar PV, with an anticipated electrolysis capacity of 150 MW. Skovgaard Energy has already commenced the development of both the Power-to-X project and the associated onshore wind and solar PV, which can enable a fast development of the project, if the regulatory work goes according to plan.
The Power-to-X plant will be situated in Idomlund, near Holstebro, in western Denmark. This is an ideal strategic location that enables the project to be scaled up significantly. It is anticipated that Idomlund will serve as the landfall for some of the massive offshore wind build-out in the North Sea, allowing for easy access to extremely large renewable energy resources. The total offshore wind targets for the EU countries around the North Sea are 65 GW by 2030 and at least 150 GW by 2050. Ørsted and Skovgaard Energy will be able to use their respective generating portfolios to maximise the project’s proximity to large-scale offshore wind, in which Ørsted is the world leader.