A. P. Moller – Maersk and DFDS have pledged their support for an ambitious new Power-to-X facility (PtX) in Esbjerg, Denmark, which would be Europe’s largest production facility of CO2 green ammonia.
Unveiled by Copenhagen Infrastructure Partners (CIP) today (23 February), the project will convert power from offshore wind turbines to green ammonia which will be used as marine fuel for vessels as well as fertiliser for the agriculture sector.
The excess heat from the project, which will consist of 1GW electrolysis, will be used to provide heating for around one third of the local households in Esbjerg.
Shipping companies A. P. Moller – Maersk and DFDS, along with agricultural companies Arla, Danish Crown and DLG, have signed a memorandum of understanding committing themselves to working towards establishing the facility.
CIP, which claims to be the world’s largest dedicated fund manager within greenfield renewable energy infrastructure investments, is seeking further collaboration with the companies to bring the facility from the planning stage to the building stage.
‘With this project, we support further development to cut CO2 emission from agriculture and shipping in Denmark, through the use of CO2-free green fertilisers and green fuel. The agriculture and shipping industries are industries which are embarking on a journey of decarbonisation,’ said Christian Skakkebæk, Senior Partner in CIP, responsible for the Energy Transition Fund. ‘Solutions such as Power-to-X are key for these industries to take the next big leap within the decarbonisation.’
PtX is seen as an important means of transitioning from greenhouse gas-emitting to carbon neutral marine fuels in the shipping sector.
‘There is a very real sense of urgency in curbing shipping’s emissions, and we must develop scalable carbon neutral fuels. Therefore, we welcome this project as an important development of green ammonia supply in the future,’ said Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands, A.P. Moller – Maersk.
As previously reported, the Danish shipping giant recently announced that it aims to have its first carbon neutral vessel on the water by 2023 – seven years ahead of the initial target of 2030.
‘This vessel will be running on carbon neutral methanol. Nevertheless, we consider green ammonia as a promising option for marine fuels and a dual fuel engine for ammonia is under development,’ said Thygesen. ‘We are optimistic that ammonia, along with methanol and alcohol-lignin blends, will be powering Maersk vessels in the future.’
International shipping and logistics company DFDS is the second shipping company to sign the memorandum of understanding.
‘Vessels are designed and built for today’s fuelling and a green fossil alternative for vessels does not currently exist. That’s why we’re partnering in projects like Power-to-Ammonia,’ said Torben Carlsen, CEO of DFDS.
‘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.’
Carlsen added: ‘I hope that this partnership will help us reach our goal of operating zero-emission ferries and trucks much faster than without the partnership.’