Ørsted will develop a wind powered, 3 GW green hydrogen facility in Denmark

The Danish energy group Ørsted and renewable energy developer Skovgaard Energy have partnered to jointly develop a Power-to-X facility to produce green hydrogen in Idomlund near Holstebro, on the Jutland peninsula (western Denmark). The project, which will be built in several phases, will have an initial electrolysis capacity of 150 MW powered by onshore wind and solar PV.

For the following stages, the partners plan to expand the capacity and use electricity from offshore wind parks installed in the North Sea. Ørsted expects that the facility’s electrolysis capacity will be able to increase to more than 3 GW in later phases, provided the necessary offshore wind capacity and hydrogen infrastructure inside and outside of Denmark are established.

Holstebro, where the project will be located, is set to become the landfall for parts of the large offshore wind projects built in the North Sea, which enables easy access to renewable energy resources and an important scaling potential. Indeed, the EU countries bordering the North Sea have set combined offshore wind targets of 65 GW by 2030 and at least 150 GW by 2050.

This project is expected to contribute significantly to Denmark’s target of reaching 4 GW to 6 GW of electrolysis capacity by 2030.