Ørsted and the Danish renewable energy developer, Skovgaard Energy, have signed a letter of intent to develop a large-scale Power-to-X (P2X) facility in western Denmark.

The first phase of the project will have an expected electrolysis capacity of 150 MW and will be powered by onshore wind and solar. Skovgaard Energy has begun the development of the P2X and associated onshore wind and solar PV. This can enable rapid development, barring any hitches in the regulatory work. The facility has the potential to play a central role in the Danish P2X industry, and in the establishment of large-scale exports of renewable hydrogen.

The facility will be built in several phases, in Idomlund, a strategic location expected to be the landfall for offshore wind in the Danish North Sea, thus enabling access to large renewable energy resources. The European Commission expects that tens of billions of euros will be invested in Power-to-X towards 2030, and Denmark, with its strong offshore wind resources, is well-positioned to play a leading role in the development of this industry.

Anders Nordstrøm, Chief Operating Officer of Ørsted P2X, says: “Europe needs green solutions at scale to fight climate change and to secure regional energy independence. Few countries have as strong a potential to become a green energy exporter as Denmark due to its abundant and low-cost offshore wind resources, which are supplemented by onshore wind and solar PV. By partnering with Skovgaard Energy on the Idomlund project, Ørsted is entering one of the most strategically advantageous projects to leverage the strong fit between large-scale renewable energy and Power-to-X.”