Offshore wind developer Orsted abandons plans for green ‘mega’ power plant
Blow: Orsted is the largest offshore wind developer
The world’s largest offshore wind developer, Orsted, has abandoned plans for a mega-plant to develop green fuels, the latest company to scale back on commitments to switch to cleaner energy sources such as hydrogen and wind.
The company was building a hub in Sweden, which would be used by sectors such as shipping and aviation.
By combining hydrogen and carbon dioxide, the plant would produce 55,000 tons of e-methane per year.
But managing director Mads Nipper said: ‘The business case has deteriorated due to the inability to secure long-term offtake contracts at sustainable prices and the significant increase in project costs.’
The measure to halt work has cost £172 million.
Ørsted is a major player in the sector and plans to build an £8 billion offshore wind farm in the North Sea by the end of 2027, which will power more than 3.3 million UK homes.
DIY INVESTMENT PLATFORMS
AJ-Bel
AJ-Bel
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free Fund Trading and Investment Ideas
interactive investor
interactive investor
Fixed investment costs from £4.99 per month
Saxo
Saxo
Get £200 back on trading fees
Trading 212
Trading 212
Free trading and no account fees
Affiliate links: If you purchase a product, This is Money may earn a commission. These deals are chosen by our editorial team because we think they are worth highlighting. This does not affect our editorial independence.