popular articles

Ørsted abandons Swedish FlagshipONE e-methanol project

Orsted halts development of FlagshipONE, its e-methanol project in Sweden, due to rising costs and the absence of long-term purchase contracts.

Please share:

Ørsted has decided to put an end to the development of its FlagshipONE project in Sweden.
The project, which aimed to produce 55,000 metric tons of e-methanol per year by 2025, was part of a strategy to meet the growing demand for alternative fuels in the maritime sector. Ørsted had acquired the project in 2022 and aimed to produce green hydrogen from a 70 MW electrolyzer, which would then have been combined with biogenic CO2 from the Horneborgsverket power plant to produce e-methanol.
However, several economic obstacles led Ørsted to reconsider its position.
Project costs far exceeded initial estimates, while commercial prospects proved less promising than anticipated.
In particular, the difficulty of securing long-term purchase contracts at competitive prices called into question the financial viability of the project.

Ørsted strategic reappraisal

The discontinuation of the FlagshipONE project reflects the challenges facing the e-fuel sector, which is still in its development phase.
Ørsted, while recognizing the long-term potential of e-fuels, has had to prioritize more technologically and economically mature initiatives.
The company thus maintains its commitment to renewable hydrogen, which it sees as an essential pillar of Europe’s industrial future, particularly in sectors such as steel and chemicals.
The financial repercussions of this decision are significant, with cancellation costs amounting to DKK 300 million and write-downs of DKK 1.5 billion.
These figures illustrate the risks inherent in investing in technologies that are still emerging.
The decision to refocus on hydrogen projects reflects a pragmatic approach in the face of market uncertainties.

Impact on the e-fuels sector

Ørsted’s abandonment of FlagshipONE underlines the difficulties faced by e-fuel projects in a slowly evolving market context.
Competition with fossil fuels, whose prices remain significantly lower, poses an additional challenge to the profitability of e-fuels.
Platts’ valuations for fossil methanol, for example, show a significant cost difference with green methanol, making the latter difficult to commercialize on a large scale.
This decision could serve as a warning to other players in the sector, prompting a reassessment of investments in similar technologies.
The e-fuels market will have to overcome considerable obstacles before it becomes a viable alternative to traditional fuels.

Register free of charge for uninterrupted access.

Publicite

Recently published in

TotalEnergies has completed strategic acquisitions in the wind, solar and hydropower sectors across Europe, Africa and Canada, thereby reinforcing its integrated power business in several key markets.
Trinasolar ISBU will supply solar electricity to Equinix for 20 years through an agreement centred on the 30 MW Yufutsu Abira project in Hokkaidō Prefecture.
Trinasolar ISBU will supply solar electricity to Equinix for 20 years through an agreement centred on the 30 MW Yufutsu Abira project in Hokkaidō Prefecture.
TerraForm Power reached a $34.5mn court settlement with its former chairman Carlos Domenech, nine years after his dismissal, ending a case tied to SunEdison's financial management.
TerraForm Power reached a $34.5mn court settlement with its former chairman Carlos Domenech, nine years after his dismissal, ending a case tied to SunEdison's financial management.
Chinese group Sinopec reported annual revenue of CNY 3,070 bn and net profit of CNY 48.94 bn, achieving record performance across its oil, gas and chemical segments.
Chinese group Sinopec reported annual revenue of CNY 3,070 bn and net profit of CNY 48.94 bn, achieving record performance across its oil, gas and chemical segments.
Maurel & Prom confirmed that US authorities cancelled its operating licence in Venezuela, while allowing it to finalise operations until 27 May.
Estonian state-owned energy group Eesti Energia plans to acquire all shares in its subsidiary Enefit Green in a voluntary takeover bid worth over €200mn, set to begin on April 8.
Estonian state-owned energy group Eesti Energia plans to acquire all shares in its subsidiary Enefit Green in a voluntary takeover bid worth over €200mn, set to begin on April 8.
Orano's French hydrometallurgy project has been designated as strategic by the European Commission under the Critical Raw Materials Act, aimed at securing the supply of critical raw materials.
Orano's French hydrometallurgy project has been designated as strategic by the European Commission under the Critical Raw Materials Act, aimed at securing the supply of critical raw materials.
TotalEnergies reported a 2.9% drop in emissions for 2024, reaffirming its climate strategy ahead of a key general meeting.
TotalEnergies reported a 2.9% drop in emissions for 2024, reaffirming its climate strategy ahead of a key general meeting.
Shell Global Solutions International B.V. has awarded McDermott a three-year framework agreement for engineering, procurement and project management services across several strategic markets.
Australian company Earth AI confirms six new mineral prospects, including cobalt and tungsten, discovered through its predictive exploration software based on artificial intelligence.
Australian company Earth AI confirms six new mineral prospects, including cobalt and tungsten, discovered through its predictive exploration software based on artificial intelligence.
Nexans is expanding its industrial capacity near Noyelles-Godault to recycle more copper, as global demand outpaces primary mining production.
Nexans is expanding its industrial capacity near Noyelles-Godault to recycle more copper, as global demand outpaces primary mining production.
Naturgy secures shareholder approval to buy back 10% of its shares to increase free float and boost market visibility.
Naturgy secures shareholder approval to buy back 10% of its shares to increase free float and boost market visibility.
Investment firm Ardian has completed the acquisition of renewable energy producer Akuo, active in photovoltaics, wind and storage, with stated ambitions for international expansion and increased capacity.
Shell aims to increase its cost reductions to USD 7 billion by 2028, leveraging artificial intelligence and targeted restructurings in its chemical divisions.
Shell aims to increase its cost reductions to USD 7 billion by 2028, leveraging artificial intelligence and targeted restructurings in its chemical divisions.
Global energy consumption growth doubled in 2024 compared to its ten-year average, fuelled by rising electricity use in advanced and emerging economies, according to a report by the International Energy Agency.
Global energy consumption growth doubled in 2024 compared to its ten-year average, fuelled by rising electricity use in advanced and emerging economies, according to a report by the International Energy Agency.
Crowley, in partnership with Naturgy, has launched LNG transport to Puerto Rico, bypassing restrictions imposed by the Jones Act to meet the island's energy demand.
Crowley, in partnership with Naturgy, has launched LNG transport to Puerto Rico, bypassing restrictions imposed by the Jones Act to meet the island's energy demand.
Abastible, a Chilean company specializing in liquefied gas and electricity, has signed a power purchase agreement with Zelestra. This hybrid project combines 220 MWdc of solar energy and 1 GWh of battery storage to support night-time energy supply.
Brookfield has completed the acquisition of 97.73% of Neoen, a French renewable energy producer, and has initiated the process to withdraw the company from the Paris Stock Exchange.
Brookfield has completed the acquisition of 97.73% of Neoen, a French renewable energy producer, and has initiated the process to withdraw the company from the Paris Stock Exchange.
Octopus Energy Generation announces four new investments in renewable energy in France, bringing the total capacity of its assets in the country to over 500 MW, with a target of one billion euros invested by 2025.
Octopus Energy Generation announces four new investments in renewable energy in France, bringing the total capacity of its assets in the country to over 500 MW, with a target of one billion euros invested by 2025.
Nexans has announced that it has entered into exclusive negotiations with the investment fund Latour Capital for the sale of Lynxeo, its industrial cable division, for an amount of 525 million euros. This transaction is part of the group’s strategy to focus on electrification.
Nexans has announced that it has entered into exclusive negotiations with the investment fund Latour Capital for the sale of Lynxeo, its industrial cable division, for an amount of 525 million euros. This transaction is part of the group’s strategy to focus on electrification.
In Fos-sur-Mer, the transformation of the industrial-port zone into a low-carbon industrial hub raises both ambitions and questions. Despite announced investments, challenges related to infrastructure, energy, and timelines remain significant.
Ecopetrol S.A. has initiated a market maker program in collaboration with Andes Investment Group Inc. and Valores Bancolombia S.A. Comisionista de Bolsa, aiming to improve trading conditions and the liquidity of its shares on the Colombian Stock Exchange.
Ecopetrol S.A. has initiated a market maker program in collaboration with Andes Investment Group Inc. and Valores Bancolombia S.A. Comisionista de Bolsa, aiming to improve trading conditions and the liquidity of its shares on the Colombian Stock Exchange.
TotalEnergies faces multiple lawsuits initiated by international NGOs over environmental and social issues related to its global projects. While several cases remain ongoing, the majority have been dismissed or dropped by the courts, questioning their legitimacy.
TotalEnergies faces multiple lawsuits initiated by international NGOs over environmental and social issues related to its global projects. While several cases remain ongoing, the majority have been dismissed or dropped by the courts, questioning their legitimacy.
Enel doubled its net profit to €7 billion in 2024, despite the decline in electricity and gas prices. The company also reduced its net debt through asset disposals and implemented a strategy focused on profitability.
Enel doubled its net profit to €7 billion in 2024, despite the decline in electricity and gas prices. The company also reduced its net debt through asset disposals and implemented a strategy focused on profitability.

Advertising