INTERVIEW | Why Orsted's new green hydrogen and methanol plant in Sweden will change the 'energy landscape in Europe'
Anders Nordstrom says Scandinavian countries, UK and Netherlands could export 'surplus' renewable H2 to European neighbours for e-fuels production
Northern Europe has a huge potential to produce hydrogen and e-fuels for other regions that is likely to lead to the emergence of “a new energy landscape”, said Orsted’s Power-to-X chief operating officer, Anders Nordstrom, as the global renewables giant began construction of the continent’s largest green methanol project.
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For sectors that cannot directly be electrified, hydrogen and e-fuels are “the missing piece” in the net-zero puzzle, he added, pointing to shipping, the chemicals industry and steel making.
“In certain regions with surplus renewable potential, the conversion to hydrogen or e-fuels is going to play a major role.”
But what happens in regions not equally blessed with a huge potential for renewable energy generation as thinly populated and windy northern Sweden?
“Countries like Denmark, the Netherlands, [or] the UK, for instance, have a huge coastline and more renewable potential for instance in offshore than is actually needed domestically.”
Those nations could export green hydrogen to more densely populated economies with lesser renewable generation potential such as Germany, he added.
“For instance, moving renewable hydrogen from Denmark to Germany will be a key element,” he said. “I think you’ll see a new energy landscape in Europe.”
But to build up a hydrogen and e-fuels economy, initial support is needed, Nordstrom insisted, pointing to a significant cost gap between fossil fuels today — which had more than 100 years to mature and bring cost down — and green fuels.
As part of its Klimaklivet (Climate Life) scheme for local climate-related investments, Sweden has granted SKr151m for the FlagshipONE project.
“It's important that there is a bit of support in terms of capex [capital expenditure] or risk relief, because, of course, the first project is more difficult and more costly than the second project and the third project,” Nordstrom argued.
“It's going to be hydrogen for mobility for heavy trucks and then it scales from there basically,” Nordstrom said. “We don’t see [the first phase] as much as a pilot, but more as a production plan for the transport sector.”