**Ørsted Abandoning Wind-Powered Green Hydrogen Projects in Denmark: A Paradigm Shift**
In a significant move, Ørsted, Denmark’s leading offshore wind energy developer, has decided to withdraw from several wind-powered green hydrogen initiatives. This decision comes after a comprehensive review of Ørsted’s Power-to-X (P2X) projects, which involve converting wind energy into alternative forms, including green hydrogen.
Ørsted’s withdrawal from these projects includes the “Green Fuels for Denmark” program, a government-backed initiative aimed at establishing 1.3GW of electrolyser capacity to produce green fuels like hydrogen and e-methanol. The project aimed to utilize between 2-3GW of offshore wind capacity from North Sea wind farms, with the initial 10MW phase scheduled for 2025, scaling up to 1.3GW by 2030 at Avedøre combined heat and power station near Copenhagen.
Additionally, Ørsted is exiting the smaller 2MW hydrogen production project called H2RES. This project was designed to demonstrate the potential use of offshore wind for green hydrogen production near Copenhagen. H2RES planned to utilize 7.2MW of offshore wind capacity to power a 2MW electrolyzer, producing green hydrogen intended for road transport in the greater Copenhagen area.
Robert Duncalf, who heads Ørsted’s business development and P2X activities in Europe, explained the rationale behind this decision. He noted that the sub-scale demonstration plant (H2RES) no longer has relevance in the current market. However, the learnings from this project will play a crucial role in the development of future green hydrogen solutions, and all consortium members see fundamental potential in green hydrogen. Despite Ørsted stepped out, individual members will continue exploring opportunities as the market matures.
The consortium working on H2RES included green fuel firms such as Everfuel Europe, Nel Hydrogen, Green Hydrogen Systems, DSV Panalpina, Hydrogen Denmark, and Energinet Elsystemansvar. The consortium will reportedly be dissolved following Ørsted’s decision.
Ørsted has also decided to step out of the Oyster green hydrogen project and the first phase of a joint P2X project targeting 150MW electrolysis capacity with Danish firm Skovgaard Energy. These decisions align with Ørsted focusing on its core business—wind energy—with green hydrogen