On 31 May Ørsted and HOFOR (a Greater Copenhagen utility) entered into an agreement that will secure green power for part of the potential 1.3 GW Green Fuels for Denmark project to produce sustainable fuels in the Greater Copenhagen area.
As part of the agreement, Ørsted and HOFOR will work towards enabling Ørsted to offtake the power produced at Aflandshage, which is HOFOR's 250 MW offshore wind farm project in the Oresund Strait. At the same time, it has been agreed that HOFOR may place the offshore wind farm's substation at the premises of Avedøre Power Station. Together, Ørsted and HOFOR will seek to realise the technical and trading-related synergies of the two projects. The future co-operation and the final design of the link between the wind farm and the PtX plant is subject to all regulatory as well as grid connection matters falling into place.
Provided that a framework is established in Denmark promoting the development of sustainable fuels, the power from Aflandshage could enable parts of Green Fuels for Denmark's second phase of 250 MW and meet the power demand for the project's first phase.
In addition, the agreement on Aflandshage could also cover the power demand of the electrolysis plant that will supply hydrogen to DFDS's proposed hydrogen-powered ferry between Copenhagen and Oslo, if this project is realised.
Aflandshage is being developed, and subject to regulatory approvals, HOFOR expects the project to deliver first power in 2024 or 2025. The power can be brought onshore at Avedøre Power Station, which is owned by Ørsted, and where Green Fuels for Denmark could be located.
Jan Kauffmann, CFO of HOFOR, emphasises that the determining factors for HOFOR have been the broad collaboration on the green energy of the future and the visionary coupling of sectors. "If we're to succeed with the green transformation of our combined energy supply, it's important that major Danish players work together on shared solutions. Not least when it makes a lot of sense for both parties. That's why we also see great potential in this long-term agreement.”