Firms collaborate on industrial-scale green fuel production

Will Green is news editor of Supply Management
28 May 2020

A partnership of Danish companies including Maersk and Scandinavian Airlines (SAS) is planning to develop industrial-scale production of sustainable fuels.

The partnership aims to build a hydrogen and e-fuel production facility as soon as 2023. When scaled up by 2030, the project could deliver more than 250,000 tonnes of fuel each year for buses, trucks, maritime vessels and aeroplanes.

The project has the potential to displace 5% of fuel at Copenhagen Airport by 2027 and 30% by 2030. It could reduce Denmark’s total annual carbon emissions by 850,000 tonnes.

The partnership also includes transport and logistics firm DSV Panalpina, ferry operator DFDS and power company Ørsted.

The facility, planned for the Copenhagen area, would provide hydrogen for buses and trucks, methanol for maritime transport and “e-kerosene” – synthetic fuel made from renewable electricity – for the aviation sector.

The plant’s electrolyser, which produces hydrogen, would need a large-scale supply of renewable electricity, which could come from offshore wind power.

“Although several partners are challenged by the deep impact of Covid-19, the partnership’s long-term commitments to fighting climate change remain intact,” said Maersk. “The industrial partners see this project as a way to combine the dual objectives of accelerating the green transformation and providing economic stimulus to the Danish economy post the Covid-19 crisis.”

Talks will take place with regulatory authorities and funding will be sought for a full feasibility study. A final investment decision could be taken as early as 2021.

Torben Carlsen, CEO of DFDS, said: “The ability to establish a vision of an industrial-scale sustainable fuel production facility is due to the power of partnerships. The cooperation of fuel users and producers along with scientists and society is the fastest way to make sustainable fuels available as realistic alternatives to the fossil fuels we combust in our vehicles and vessels today.”

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