Orsted has withdrawn from the Green Fuels for Denmark (GFDK) project and the consortium behind the 2MW H2RES hydrogen production development.
The developer said H2RES was created as a demonstration project which in its four-year project period gave the consortium’s partners invaluable insights that will benefit future projects and further advance the development of Denmark’s green energy sector.
Head of Europe business development and P2X activities in Europe Robert Duncalf said: “The consortium has jointly decided not to continue the project since a sub-scale demonstration plant like this no longer has a relevance in the current market.
“The learnings from H2RES will play a key role for the partners in the consortium in the development of future green hydrogen solutions and all parties in the consortium see fundamental potential in green hydrogen and will individually continue to explore opportunities in the area as the market matures.”
As part of this decision the consortium is to be dissolved.
The move to step out of Green Fuels for Denmark follows the Danish developer’s decision to de-prioritise its efforts within efuels in Northern Europe and “as such the project is no longer in line with our strategy”.
It added it was aware other partners in the scheme are “exploring options for continuing Green Fuels for Denmark”.
The consortium working on H2RES included Green Hydrogen Systems, Everfuel Europe, DSV Panalpina, Nel Hydrogen, Energinet Elsystemansvar, and Hydrogen Denmark.
Duncalf said: “We still think the vision behind Green Fuels for Denmark is good.
“However it is no longer the right fit for Orsted since we are focusing on our core business which is wind energy with green hydrogen as a relevant and complementary technology.”
The developer said the decision not to move ahead with GFDK and H2RES is in line with its decision to de-prioritise the development of efuels and evaluate all projects against their value creation.
“The decision does not change our existing guidance,” it said.
“Orsted will, as already communicated, keep the door open for green hydrogen projects, where these can complement offshore wind activities and meet our financial return requirements.”