Denmark-headed renewable energy provider and Power-to-X (PtX) developer European Energy A/S, and the Port of Aalborg have signed a Letter of Intent (LoI) for a large Power-to-X plant. Planned to be built at the Eastern Port in Aalborg, it could be operational as early as 2025.
For European Energy, the agreement secures an option for a 25-hectare site in Denmark’s largest inland port for a new electrolysis plant with a capacity of 120 MW and an associated e-methanol plant.
So-called e-fuels such as e-methanol will play a crucial role in the green transition with major players such as Maersk and Circle K already in the process of building a solid demand in the market, said Emil Vikjær-Andresen, Head of Power-to-X at European Energy.
The plant will produce around 75 000 tonnes per annum of e-methanol, approximately twice the size of the plant European Energy is currently in the process of establishing in Aabenraa in Southern Denmark.
Therefore, it is crucial that we build up a large production capacity, which is why we have worked for a period of time on various projects to be able to establish a plant in Aalborg, which has a unique value chain within Power-to-X, said Emil Vikjær-Andresen.
The green power for the plant will primarily come from new renewable energy plants with European Energy currently having a significant pipeline of projects in Denmark towards 2025.
Furthermore, European Energy also hopes to get permission to establish solar parks in the immediate area of the new Power-to-X plant.
We greatly appreciate a very constructive dialogue with Port of Aalborg, which has been decisive for us now being ready to enter the next phase, Emil Vikjær-Andresen remarked.
A methanol mecca
Port of Aalborg, Chairman of the Board Lasse Frimand Jensen is pleased with the prospect of a project that unites green transition, job creation, and growth opportunities.
In recent years, we have invested heavily in creating an optimal framework for innovative environments and clusters that bring Aalborg into the world elite within the technologies of the future, said Lasse Frimand Jensen.
In addition to the construction itself, it is expected that the plant will initially generate 10-15 jobs for the operation.
With a new, large Power-to-X facility, Aalborg will truly consolidate itself as a world-leading hub for modern and green energy technology, which will strengthen our ability to attract even more investments and players from both home and abroad, Lasse Frimand Jensen said.
Detailed planning underway
With a goal of production already in 2025, it is crucial that work on the project starts already this year. The next step will be the further technical planning of the project, which will form the basis for regulatory handling.
In addition, we are in the process of exploring the market for possible carbon sources, which looks really promising. But we will also work to enter into more symbioses with the nearby area by, among other things, offering surplus heat to Aalborg’s district heating network, said Emil Vikjær-Andresen.
With the newly established business consortium CCUS Fyrtårn Nordjylland, which consists of a number of public players and 27 companies, the parties will apply for public support for the project.
We estimate that we will be able to supply approximately 10 percent of the heat that normally comes from the heat and power plant Nordjylland Power Station, meaning we can play a role in the plant’s phase-out of coal, Emil Vikjær-Andresen said.
Earlier in March, a broad majority in the Danish Parliament reached an agreement to allocate DKK 1.25 billion (≈ EUR 168 million) for investment in Power-to-X technology.
According to the Mayor of Aalborg Municipality, Thomas Kastrup-Larsen, the politicians should look in the direction of Aalborg when resources are allocated.
Aalborg has a fantastic position in terms of Power-to-X specifically and energy technology in general. Among other things, in the form of world-leading research centers at Aalborg University as well as a visionary business community that is engaged in both the development and testing of Power-to-X and fuel cell technology as well as carbon capture, Thomas Kastrup-Larsen said.
At the same time, we have a fantastic platform for running green projects through partnerships between both public and private players in the form of Green Hub Denmark. So, I have great confidence that Aalborg will be an important priority for the Danish Parliament, ended Thomas Kastrup-Larsen.
