Container shipping group AP Moller-Maersk, airline SAS, logistics group DSV Panalpina, ferry line DFDS, Copenhagen Airports and renewable energy company Orsted have brought together the demand and supply side of sustainable fuels in a unique partnership with the concrete vision to develop a new ground-breaking hydrogen and e-fuel production facility as soon as 2023 as they try to help Denmark achieve carbon neutrality by 2050. When fully scaled-up by 2030, the project could deliver more than 250,000 tonnes of sustainable fuel for busses, trucks, maritime vessels, and airplanes every year.
The project would use renewable energy to produce hydrogen instead of the current way of using natural gas, before using it to make methanol that could be used in ships and aircraft by 2027. A peak capacity employing a 1.3GW electrolyser to make hydrogen from water, the project could save 850,000 tonnes of carbon emissions annually but would need a 3GW offshore wind farm, one of the world’s largest, to power it.
Today, such sustainable fuels come at a higher cost than fossil-based fuels. To become competitive with fossil fuels, the production of sustainable fuels will need to be matured, built at industrial scale, and go through a cost-out journey similar to what has been seen over the past decade in other renewable energy technologies, such as offshore wind, onshore wind and solar PV. As an example, the cost of offshore wind has declined by approximately 70 percent in Northwest Europe since 2012. For this to happen, governments and industry must come together to create a framework that incentivizes private investments in large-scale sustainable fuel production.
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