NEWS COMMENTARY

Maersk, Ørsted, and other Danish companies embark on full-scale electrofuels production by 2030

Published:
May 28, 2020
Coverage:
Owning the Energy Transition More...
Activities:
Project
by Yuan-Sheng Yu
Very important

In what is likely the most high-profile and large-scale electrofuels project to date, a total of 1.3 GW of electrolyzer capacity is planned to come online by 2030 to produce 250,000 MT of fuels – hydrogen for buses and trucks, methanol for shipping, and electrofuels for aviation. The applications align with the roadmap for the decarbonization of transportation unlikely to be fulfilled through electrification, as both shipping and aviation demand is expected to grow substantially. However, the economics remains a major barrier, as hydrogen, methanol, and electrofuels depend highly on access to cheap renewable electricity. While a possible 2021 start time has been set, clients should expect significant delays but monitor this project closely.

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