DSV Panalpina joins forces with Danish companies on a sustainable fuel project


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Copenhagen Airports, Maersk, DSV Panalpina, DFDS, SAS and Ørsted have formed a partnership to develop a hydrogen and e-fuel production facility in the Greater Copenhagen Area, as soon as 2023.

When fully scaled-up by 2030, the project could deliver more than 250,000 tonnes of sustainable fuel for busses, trucks, maritime vessels, and aeroplanes annually. Production would potentially be based on a total electrolyser capacity of 1.3GW, which would likely make it one of the world’s largest facilities of its kind. The production from the fully scaled facility can reduce annual carbon emissions by 850,000 tonnes.

COWI and BCG act as knowledge partners for the project and the project is supported by the Municipality of Copenhagen in line with Copenhagen’s ambitious policies for decarbonisation.

If executed as planned, the project will supply renewable hydrogen for zero-emission busses tendered by Movia and heavy-duty trucks managed by DSV Panalpina, renewable methanol for Maersk vessels and renewable jet fuel (e-kerosene) for SAS aeroplanes and air transport out of Copenhagen Airports. The project will require a large-scale supply of renewable electricity, which could potentially come from offshore wind power produced at Rønne Banke off the island of Bornholm.

The industrial partners see this project as a way to combine the dual objectives of accelerating the green transformation and providing economic stimulus to the Danish economy post the COVID-19 crisis. The vision of the partnership is set to develop the project in three stages:

  1. The first stage, which could be operational by 2023, comprises a 10MW electrolyser which can produce renewable hydrogen used directly to fuel busses and trucks.
  2. Stage two comprises a 250MW electrolyser facility which could be operational by 2027 when the first offshore wind power from Bornholm could be delivered. This facility would combine the production of renewable hydrogen with sustainable carbon capture from point-sources in the Greater Copenhagen area to produce renewable methanol for maritime transport and renewable jet-fuel (e-kerosene) for the aviation sector.
  3. Stage three, which could be operational by 2030 when the offshore wind potential at Bornholm has been fully developed, would upgrade the project’s electrolyser capacity to 1.3GW and capture more sustainable CO2, enough to supply more than 250,000 tonnes of sustainable fuels to be used in busses, trucks, maritime vessels and aeroplanes. The project has the potential to displace 5% of fossil fuels at Copenhagen Airport by 2027 and 30% by 2030.

The partnership will now meet with the regulatory authorities to discuss the framework and policies needed to support the development of using sustainable fuels at scale in Denmark’s transport sector, and to seek public co-funding to conduct a feasibility study for the project. If the feasibility study confirms the viability of the project vision, a final investment decision for the first stage of the project could likely be taken as soon as 2021.

Source: DSV Panalpina

 

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