Ørsted and partners secure EUDP funding for renewable hydrogen project
Within energy, Avedøre in Denmark is best known for housing Ørsted's large biomass-fuelled combined heat and power (CHP) plant, Avedøre Power Station. In the future, the area outside Copenhagen might become home to more than heat and power production. This became clear when the Energy Technology Development and Demonstration Programme (EUDP) under the Danish Energy Agency decided to support the H2RES project with DKK 34.6 million (≈ EUR 4.63 million) in funding.
Hydrogen is widely used in heavy industry in Europe, but it is mainly produced by converting fossil fuels in a process that emits large amounts of greenhouse gases (GHGs). Hydrogen may also be produced by means of electrolysis, a process in which electricity is used to split water into hydrogen and oxygen.
If the power used for electrolysis originates from renewable energy sources, the hydrogen produced will be renewable. Therefore, the H2RES project, for which Ørsted and six partners have received funding, will be using power directly from Ørsted’s two 3.6 MW offshore wind turbines at the Avedøre Power Station.
The integration of energy from offshore wind into heavy transport is a main challenge in the green transformation. With H2RES, we’ll have the possibility of testing how hydrogen and offshore wind can best complement each other. Both with each other, with the transport sector and the collective energy system. It’s a very important step for hydrogen as a key technology in the green transformation, said Tejs Laustsen Jensen, CEO of Hydrogen Denmark.
Together with partners Everfuel Europe A/S, NEL Hydrogen A/S, GreenHydrogen A/S, DSV Panalpina A/S, Hydrogen Denmark, and Energinet Elsystemansvar A/S, Ørsted has received DKK 34.6 million (≈ EUR 4.63 million) from the Danish Energy Agency’s EUDP programme for the construction of a 2 MW electrolysis plant with appurtenant hydrogen storage.
Denmark is a global front runner within renewable energy and has a pole position in leading the way for renewable hydrogen to be the energy source of choice for heavy-duty transportation. The realisation of the H2RES project will be an important step towards developing a nationwide infrastructure for renewable hydrogen, and we look forward to working with Ørsted and the H2RES partners on this and future projects, said Jon André Løkke, CEO, Nel ASA.
H2RES is a demonstration project for renewable hydrogen production for road transport based on offshore wind power. In general, the power for the demonstration project will be sourced directly from Ørsted’s two 3.6 MW offshore wind turbines at Avedøre.
The electricity from offshore wind turbines will produce renewable hydrogen for heavy-duty vehicles (HDVs) and potentially taxis.
Renewable hydrogen could potentially form a cornerstone of Denmark’s ambition to reduce greenhouse gas emissions by 70 percent in 2030 and of the transition to a world that runs entirely on green energy. Heavy road transport is one of the sectors which can be made greener by indirect electrification with hydrogen produced from renewable sources. However, renewable hydrogen is currently more expensive than hydrogen produced from gas or coal. Therefore, it’s important for us to be able to demonstrate the technology and gather experience, that will make it possible to scale up the technology and make it more efficient so that we’ll be able to produce renewable hydrogen at a price which can compete with the price of the fossil-based alternatives, said Anders Nordstrøm, Vice President and Head of Ørsted’s hydrogen activities.
The daily hydrogen production is expected to total around 600 kg, enough to power 20-30 buses, while also making testing its use in trucks and taxis possible. Moreover, electrolysis can be run flexibly, thereby helping to ensure flexible use of the fluctuating power production from the offshore wind turbines.
The interest in green zero-emission fuel is enormous, especially in the Greater Copenhagen area. Hydrogen produced on surplus renewable energy gives us the possibility to make 100 percent green, pollution-free fuel. The energy can be stored, distributed and used flexibly without the need for further substantial investments in new electricity infrastructure for heavy transport in, for example, the city environment. Everfuel is responsible for distributing renewable hydrogen, including establishing hydrogen stations for owners and operators of zero-emission vehicles – without limitations to existing operational needs. The H2RES project at Avedøre is completely unique with strong partners and close proximity to Copenhagen, said Jacob Krogsgaard, CEO, Everfuel.
The funding awarded to the H2RES project is the largest among the 53 projects which have received funding from the EUDP in this second 2019 call for applications.
This is a very important project for us to be a part of, and we’re looking forward to the cooperation. Ørsted is leading the way for the wind industry when it comes to the concrete use of hydrogen. The project will give GreenHydrogen valuable experience and a unique foundation to further develop our electrolysis facilities to meet the requirements of the wind industry, which will be among the very largest players within hydrogen for energy storage, said Niels-Arne Baden, CEO of Green Hydrogen.