Ørsted has scrapped its plans for making e-fuels citing a slower than expected market development.

The FlagshipONE project, would have been the largest e-methanol project in Europe. Planned Örnsköldsvik in northern Sweden it was scheduled to start operating in 2025 and produce 55,000 tonnes of e-methanol per year from hydrogen and carbon dioxide.

The company has also suffered reversal of fortunes recently in the US where it has cancelled two major windfarm projects.

Mads Nipper, group president and CEO of Ørsted, said: “The liquid e-fuel market in Europe is developing slower than expected, and we have taken the strategic decision to de-prioritise our efforts within the market and cease the development of FlagshipONE. We will continue our focus and development efforts within renewable hydrogen, which is essential for decarbonising key industries in Europe and closer to our core business.”

Operating profit for the first half year increased despite cancelled projects to DKK 14.1bn. The company stated that impairment losses amounted to DKK 1.5bn from the scrapping of FlagshipONE.

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