The largest e-methanol project in Europe has shut down.
In a significant move, Ørsted has decided to terminate its FlagshipONE project, which was once the largest e-methanol plant in Europe.
And it boils down to one reason.
Insufficient market demand.
This decision highlights a broader trend within the maritime industry, where companies like MAERSK are shifting their focus from (e-)methanol to (e-)LNG (electric Liquefied Natural Gas).
Why?
Because they can build up on existing infrastructure and achieve their emissions targets for the coming years by switching to fossil LNG.
The chemical industry, a potential major buyer of green methanol, is also facing tight margins and relocating operations to China, further dampening demand.
One of the key reasons for the project's failure was the absence of secured long-term offtake agreements.
This underscores the importance of securing reliable market demand before committing to large-scale renewable energy projects.
In contrast, at TURN2X, we’ve factored that into our approach by ensuring robust off-take contracts before building.
We also deliberately decided to focus on renewable natural gas (RNG) first and not e-methanol as the RNG market has an established 3 to 4x green premium thanks to the biomethane market which is heavily supply-capped.
Don’t get me wrong: e-methanol is a great product and is needed to reach our decarbonization pathways.
It is just important to use it for the right industries at the right time.
You can read more about the plant shut-down here:
https://lnkd.in/d44AzAvb
Illustration / Courtesy of Ørsted
#renewableenergy #sustainablebusiness #emethanol #eLNG #greenpremium
Environmental Lead at Neptune Energy Norge AS
2moGratulerer! 🙌💕