Orsted [ORSTED:DC] and Skovgaard Energy, two Danish renewable energy companies, have signed a letter of intent to jointly develop a Power-to-X facility in western Denmark to produce green hydrogen, as reported by Reuters on December 6. The project will be built in several phases, starting with a facility with an expected electrolysis capacity of 150 megawatts (MW) powered by onshore wind and solar photovoltaic (PV) and later scaling up the facility and using electricity generated from wind farms installed in the North Sea. By the completion of the project, the large-scale Power-to-X facility will have approximately 3 gigawatts (GW) of energy generation capacity. Orsted and Skovgaard hope to contribute to Denmark’s ambition to deploy 4 GW to 6 GW of electrolysis capacity by 2030.
Power-to-X is a collective term for technologies that can convert and store excess electric power from renewable energy to fuels such as gases, hydrogen, and methane. Because the hydrogen generated from Power-to-X technology is solely produced by renewable energy, it is known as green hydrogen. Power-to-X and green hydrogen are seen as key drivers to decarbonize and accelerate the green transition. Utilizing Power-to-X technology also enables the European Union to reduce dependence on fossil fuels imported from Russia.