Orsted has announced its withdrawal from the Green Fuels for Denmark (GFDK) initiative and the consortium behind the 2 MW H2RES hydrogen production project. The developer characterized H2RES as a demonstration project that, during its four-year duration, provided invaluable insights for the consortium's partners, which will inform future initiatives and support the advancement of Denmark's green energy sector.
Robert Duncalf, head of Europe business development and Power-to-X activities at Orsted, stated, “The consortium has jointly decided not to continue the project since a sub-scale demonstration plant like this no longer has relevance in the current market. The learnings from H2RES will play a key role for the partners in the consortium in the development of future green hydrogen solutions, and all parties in the consortium see fundamental potential in green hydrogen and will individually continue to explore opportunities in the area as the market matures.”
As part of this decision, the consortium will be dissolved. Orsted's exit from the GFDK project aligns with its strategy to deprioritize efforts within e-fuels in Northern Europe. The company noted that the project no longer aligns with its strategic objectives, although it acknowledged that other partners in the initiative are exploring options for continuing Green Fuels for Denmark.
The consortium involved in H2RES included Green Hydrogen Systems, Everfuel Europe, DSV Panalpina, Nel Hydrogen, Energinet Elsystemansvar, and Hydrogen Denmark. Duncalf added, “We still think the vision behind Green Fuels for Denmark is good. However, it is no longer the right fit for Orsted since we are focusing on our core business, which is wind energy, with green hydrogen as a relevant and complementary technology.”
Orsted emphasized that this decision is in line with its strategy to evaluate all projects based on their value creation potential and does not alter its existing guidance. “Orsted will, as already communicated, keep the door open for green hydrogen projects where these can complement offshore wind activities and meet our financial return requirements,” the company stated.
