Orsted, a key player in renewable energy, has received support from the EU-Catalyst Partnership for its FlagshipONE project, marking a significant leap in pioneering carbon-neutral solutions for the shipping industry.
Backed by the European Commission, Breakthrough Energy Catalyst, and the European Investment Bank (EIB), FlagshipONE represents Europe’s largest e-methanol plant and stands as a beacon of possibility in steering shipping towards decarbonization.
This landmark initiative involves Breakthrough Energy Catalyst acquiring a 15 percent equity interest in FlagshipONE, accompanied by a substantial grant. The funding aims to enable Orsted to establish long-term offtake agreements, revolutionizing the fuel procurement model within the shipping sector and paving the way for future projects to secure necessary capital for scaling green fuel production.
Furthermore, Horizon Europe’s grant and EIB’s quasi-equity investment through InvestEU are anticipated to bolster the project. These funds, garnered from Horizon Europe and the EU Innovation Fund within InvestEU’s framework, are earmarked to propel FlagshipONE’s first commercial demonstration of technology.
Nestled in Ornsköldsvik in northern Sweden, the project anticipates an annual production capacity of up to 55,000 tonnes of e-methanol, facilitating shipping industry off-takers in achieving over a 95 percent reduction in carbon emissions compared to conventional fossil fuels.
Werner Hoyer, President of the European Investment Bank, emphasized the pivotal role of innovative solutions in steering the global trajectory towards net-zero emissions. He highlighted the joint efforts with the European Commission and Breakthrough Energy Catalyst to finance groundbreaking projects like FlagshipONE, crucial for transitioning to climate neutrality.
Mads Nipper, Group President and CEO of Orsted, expressed immense pride in collaborating with leading entities at the forefront of green transformation, underscoring FlagshipONE’s status as a trailblazing project. Nipper’s confidence stems from Orsted’s history of scaling pioneering technologies with support from institutions like EIB, aiming to mature the European P2X industry in collaboration with Breakthrough Energy Catalyst and the European Commission.
Rodi Guidero, Executive Director of Breakthrough Energy and Managing Partner of Breakthrough Energy Ventures, highlighted the tangible impact of their collaborative approach in advancing FlagshipONE towards operationalization. Guidero emphasized the collaborative blueprint’s significance in expediting Europe’s decarbonization objectives.
Recognizing shipping’s substantial carbon footprint, Orsted intensifies its focus on green fuel expansion in Northern Europe and the US. FlagshipONE stands as Orsted’s maiden e-methanol project in its green fuels portfolio, accompanied by a 300,000 tonnes/year e-methanol project in the US Gulf Coast area, recently awarded funding as part of the US ‘Hydrogen Hubs’ initiative.
Situated within the grounds of the Swedish biomass-fired combined heat and power plant Horneborgsverket in Ornskoldsvik, FlagshipONE harnesses renewable energy predominantly sourced from the region and biogenic carbon dioxide captured from the facility. The project aligns with sustainability by utilizing resources like steam, process water, and excess heat, contributing to Övik Energi’s district heating supply.
FlagshipONE signifies a groundbreaking venture at the nexus of innovative technology, strategic partnerships, and environmental stewardship, revolutionizing the maritime industry’s carbon-neutral journey.