CIP teams with Maersk and DFDS to build Europe’s largest power-to-X facility

The project will be located in the town of Esbjerg on the west coast of Denmark, where the power-to-X-facility will convert power generated by offshore windfarms to green ammonia. This will be used by the agriculture sector as CO2-free green fertiliser and by the shipping industry as green fuel. Excess heat produced will be used to provide heating for around one third of the households in Esbjerg.

The 1-GW electrolysis facility is expected to reduce CO2 emissions by approximately 1.5M tonnes per annum.

CIP’s 23 February 2021 announcement was made in collaboration with market leaders in the agriculture and shipping industries. Arla, Danish Crown and DLG are involved in the project, and represent a significant part of the agricultural value chain for dairy, meat, and crop production. Also involved are AP Moller–Maersk and DFDS, representing the shipping sector.

Together with CIP, they have signed a memorandum of understanding, in which the signatories commit themselves to work towards realising the facility.

CIP senior partner Christian Skakkebæk said, “With this project, we are helping to cut CO2 emissions from agriculture and shipping in Denmark.

“The agriculture and shipping industries have embarked on a journey towards decarbonisation. Solutions such as power-to-X are key for these industries to take the next big step.”

Among the potential investors in the project in Esbjerg is PensionDanmark, whose chief operating officer Torben Möger Pedersen said, “Power-to-X is a new chapter in attractive green investment opportunities. With CIP’s new Energy Transition Fund, we as potential investors are provided with an opportunity to directly participate in the next phase of the energy transition. This is a natural evolution for us at PensionDanmark. More than 10 years ago, we were a first mover into renewable infrastructure investments including offshore wind.”

AP Moller–Maersk chief executive of fleet and strategic brands Henriette Hallberg Thygesen said, “The shipping industry needs to replace fossil fuels with green alternatives. There is a very real sense of urgency in curbing shipping’s emissions, and we must develop scalable carbon-neutral fuels. We welcome this project as an important development in the supply of green ammonia.

“We consider green ammonia a promising option for marine fuels and a dual-fuel engine for ammonia is under development. We are optimistic that ammonia, along with methanol and alcohol-lignin blends will be powering Maersk vessels in the future.”

DFDS chief executive Torben Carlsen highlighted the importance of industrial-scale sustainable fuel production. “I hope that this partnership will help us reach our goal of operating zero-emissions ferries and trucks much faster.”