Ørsted and Skovgaard Energy partner on green hydrogen in Denmark


Denmark – A letter of intent was signed by Ørsted and Skovgaard Energy, a Danish renewable energy developer, to work together to create a Power-to-X facility in one of Denmark’s most desirable sites.

The facility will be constructed in stages and can thus play a crucial part in both the construction of a large-scale renewable hydrogen export business for the green transformation of Europe as well as in the launch of the Danish Power-to-X sector.

The project’s initial phase will be powered by onshore wind and solar PV, with an anticipated electrolysis capacity of 150 MW. If the regulatory work proceeds as planned, Skovgaard Energy has already started developing the Power-to-X project as well as the related onshore wind and solar PV. This could permit a quick development of the project.

Strategic location

The Power-to-X plant will be situated in Idomlund, next to Holstebro, in western Denmark. This is an ideal strategic location that enables the project to be scaled up significantly. Parts of the massive offshore wind build-out in the North Sea are anticipated to make landfall near Idomlund, making it simple to access extremely sizable renewable energy resources. The total offshore wind ambitions for the EU nations bordering the North Sea are 65 GW by 2030 and at least 150 GW by 2050.

Due to the project’s closeness to large-scale offshore wind, a sector in which Ørsted leads the globe, Ørsted and Skovgaard Energy will be able to maximize the value of their respective generation portfolios. Additionally, the project’s scalability fits in well with Ørsted’s tiered strategy to building Power-to-X initiatives, where lessons learned from one project can be used to the next in the technology’s anticipated rapid scale-up.

The facility’s electrolysis capacity will be able to rise to more than 3 GW, and the hydrogen can be exported on a massive scale and contribute to the green transition across Europe if the appropriate offshore wind capacity and hydrogen infrastructure are developed in and outside of Denmark. This could make the facility one of the biggest in Europe and will help Denmark reach its 2030 goal of 4-6 GW of electrolysis capacity. Tens of billions of euros are anticipated to be invested in Power-to-X by 2030, and Denmark, with its abundant offshore wind resources, is well-positioned to take the lead in the growth of this sector.