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Siemens Energy secures Danish electrolyzer deal

Siemens Energy secures Danish electrolyzer deal
A schematic of European Energy's e-methanol power-to-fuel process (graphic courtesy European Energy).

Denmark-headed renewable energy major and Power-to-X (PtX) developer, European Energy A/S has revealed that it has placed an order for a 50 MW electrolyzer with Siemens Energy. The plan is that the plant will be built in Kassø, located west of Aabenraa in the South of Denmark, near the German border.

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Through the nearby 300 MW solar park of Kassø, developed by European Energy, the project will have access to the low-cost renewable electricity needed to produce cost-effective electro-fuels (e-Fuels), in this case, e-methanol.

We are pleased to place this important order on what is believed to be the first large-scale commercial Power-to-X-project of its kind in the world, said Knud Erik Andersen, CEO of European Energy.

According to European Energy, end-users of the e-methanol will be the shipping company Maersk and the fuel retailer Circle K among others.

The Kassø project will secure the e-methanol supply for Maersk`s first e-methanol-powered container vessel, and thus marks the starting point for carbon-neutral shipping at scale.

The start of commercial methanol production is planned for the second half of 2023.

State-of-the-art system

Siemens Energy will design, supply, and commission the electrolysis system consisting of three full arrays of its latest and most powerful line of Proton Exchange Membrane (PEM) electrolysis products including transformers, rectifiers, and distributed control system (DCS) plus the equipment to produce demineralized water.

Climate change requires urgent action. Together with our partner European Energy we are taking over a first mover’s role in decarbonizing the marine industry, said Stefano Innocenzi, SVP of New Energy Business at Siemens Energy.

European Energy is the owner of the Kassø project and will be responsible for the engineering, procurement, and construction (EPC), as well as for the operation of the facility.

With this project, we will bring e-Methanol to market at scale. E-Methanol or derived e-Fuels are predestined for long-distance ship and road transportation as well as for aviation. The project will be proof of the successful commercialization and scaling of our PEM technology, Stefano Innocenzi said.

First drops in the ocean

According to European Energy, global shipping consumes around 3 050 TWh of energy annually, which is over fivefold Germany’s annual electricity consumption.

As nearly all maritime fuels are fossil-based, mainly bunker oil, the shipping sector emits about 1 billion tonnes of carbon dioxide (CO2) per year, about 13 percent of the greenhouse gas (GHG) emissions from global transport.

The International Maritime Organization (IMO) has already committed the shipping sector to halve greenhouse gas (GHG) emissions by 2050 (based on the 2008 level) to meet Paris Agreement targets.

Measures include new logistics approaches, increased efficiency, speed/power reductions, and – as the most effective pathway – the application of sustainable maritime fuels including e-Fuels, for propulsion.

This is a crucial moment in the green transition as we move forward with the decarbonization of hard-to-abate sectors such as the shipping industry, and we trust that Siemens Energy’s outstanding know-how of electrolyzers will become a strong foundation to expand our business of delivering sustainable fuels to the world, ended Knud Erik Andersen.

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