Ørsted Ends FlagshipONE Project as e-Fuel Market Developments Lag

Danish energy company Ørsted has announced it will halt the development of the FlagshipONE project, which was set to become Europe’s largest commercial-scale e-Methanol facility. This decision comes nearly two years after Ørsted made its final investment decision (FID) on the project. The termination of FlagshipONE was revealed in Ørsted’s interim report for the first half of 2024.

Ørsted's Group President and CEO, Mads Nipper, explained that the slow development of the liquid e-fuel market in Europe has led the company to re-evaluate its priorities. "The liquid e-fuel market in Europe is progressing more slowly than anticipated," Nipper said. "As a result, we have decided to de-prioritize our efforts in this area and cease the development of FlagshipONE. Instead, we will concentrate on renewable hydrogen, which is crucial for decarbonizing key industries in Europe and aligns more closely with our core business. We will continue to focus on de-risking project execution and prioritizing growth opportunities with the highest potential for value creation."

FlagshipONE was originally developed by Swedish company Liquid Wind and was expected to start operations in 2025. The facility was designed to produce up to 55,000 tonnes of e-Methanol annually for the shipping industry. Ørsted acquired the project in December 2022, and construction commenced on May 24, 2023.

The decision to terminate FlagshipONE reflects Ørsted's strategic shift towards renewable hydrogen and away from e-fuels, as the latter’s market maturity does not align with the company's expectations and investment goals. Ørsted aims to streamline its efforts to focus on areas with greater potential for impact and profitability.

Ørsted envisions a future fully powered by green energy. The company develops, builds, and operates offshore and onshore wind farms, solar farms, energy storage systems, renewable hydrogen and green fuels facilities, and bioenergy plants. Acknowledged as a global leader in climate action, Ørsted is featured on the CDP Climate Change A List and was the first energy company to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi). Based in Denmark, Ørsted employs around 8,400 people and is publicly traded on the Copenhagen Stock Exchange under the ticker symbol Orsted. In 2023, Ørsted reported revenue of DKK 79.3 billion (EUR 10.6 billion). Ørsted assists countries and companies in transitioning to green energy by developing large-scale, cost-effective green energy solutions, including offshore wind farms and renewable hydrogen facilities. Ørsted is dedicated to ensuring that green energy is sustainable for the climate, people, and nature.