Orsted Partners with Breakthrough Energy Catalyst and European Commission to Decarbonize Shipping Industry

Strategic Insights -

Ørsted, the Danish energy company, has partnered with Breakthrough Energy Catalyst, the European Commission, and the European Investment Bank to support its FlagshipONE project, which aims to decarbonize the heavy shipping industry. FlagshipONE is Europe's largest e-methanol plant and is expected to produce up to 55,000 tonnes of e-methanol each year to enable shipping companies to achieve a 95% reduction in carbon emissions.

Key Takeaways:

  • The EU-Catalyst Partnership, led by the European Commission, will provide up to €820 million in funding to accelerate the deployment of innovative technologies in five sectors, including renewable hydrogen and sustainable aviation fuels.
  • Breakthrough Energy Catalyst will acquire a 15% equity interest in FlagshipONE and provide a grant to the project, subject to the fulfillment of funding conditions.
  • FlagshipONE is expected to produce up to 55,000 tonnes of e-methanol each year, which will be used to fuel dual-fuel ships and achieve a 95% reduction in carbon emissions.
  • The project is located in Örnsköldsvik, Sweden, and will use renewable energy and biogenic carbon dioxide captured from the Härnöberg power plant.
  • Excess heat from the e-methanol production process will be delivered back to Örnik Energi and integrated into their district heating supply.
  • The European Investment Bank has committed to increasing investment in climate action and environmental sustainability to more than 50% of its annual lending by 2025.
  • The EU-Catalyst partnership is one of the key actions through which the European Commission seeks to achieve its goal of cutting greenhouse gas emissions by at least 55% by 2030.

Statistics:

  • 230 dual-fuel ships are in operation or on order, with 47% of them announced this year.
  • Breakthrough Energy Catalyst focuses on five technology areas: clean hydrogen, sustainable aviation fuel, direct air capture, long-duration energy storage, and manufacturing decarbonization.
  • The European Investment Bank has invested in over 100 projects through its Innovation Fund, with a total of €6.9 billion in grants provided.
  • The EU's climate action budget for 2023-2027 is €95.5 billion, with 35% of the budget dedicated to climate action.

Sources:

  • Orsted News Release, December 1
  • About Orsted
  • About EU-Catalyst partnership
  • About Breakthrough Energy
  • About the European Investment Bank
  • About the European Commission