Orsted aims to produce its first green hydrogen by the end of this year after a final decision to build a pilot plant in Copenhagen that it said will mark “a new era” for the global offshore wind giant.

Orsted will press ahead with the H2RES demonstration project that will link a 2MW onshore electrolyser with a pair of 3.6MW Siemens Gamesa offshore wind turbines at Avedøre Holme on the outskirts of the Danish capital.

H2RES will be Orsted’s first green H₂ project, but is expected to be just the first step by the Danish group and many other major renewables players to meet surging demand for the key energy transition fuel, which is central to plans by the EU and individual European nations to hit climate and energy targets.

Orsted alone has joined seven renewable hydrogen projects across Denmark, Germany, the Netherlands, and the UK.

The company said H2RES marks “a new era in Orsted's green journey, where the power of offshore wind will be harnessed to decarbonise society beyond direct electrification, offering a path towards zero emissions for otherwise hard to abate sectors”.

Martin Neubert, CEO of Orsted Offshore, said: "We see renewable hydrogen and other sustainable fuels as cornerstones in reaching net-zero emissions by 2050, and H2RES will contribute with key learnings to turn Europe's ambitious build-out targets for renewable hydrogen into a new industrial success story.”

The H2RES project is expected to produce its first hydrogen by the end of 2021, said Orsted as it announced the final investment decision.

The facility is expected to churn out around 1,000kg of H₂ daily, which will be used as fuel for regional transport users.

The H2RES project has previously been backed by DKr34.6m ($5.7m) from the Danish Energy Agency.

"H2RES is an example of how public co-funding coupled with a committed hydrogen industry and ambitious offtakers can drive the decarbonisation of the transport sector,” said Anders Nordstrøm, head of Orsted's hydrogen activities.

“H2RES is a small but important step towards large-scale renewable hydrogen production, and it will allow us to demonstrate how offshore wind combined with onshore electrolysis can offer decarbonisation beyond direct electrification."

Initiatives to link offshore wind to green hydrogen electrolysis both onshore and at sea are underway across Europe in an effort to drive down the currently high cost of renewable H₂ and allow it to compete with existing production methods based on fossil fuels.

Orsted itself earlier in January said it would work with turbine OEM Siemens Gamesa and others to produce a “fully marinised” system for green hydrogen production directly linked to offshore wind turbines.

Offshore wind is seen as a potentially ideal fit with hydrogen electrolysis thanks to a number of factors, including stronger winds at sea, plentiful supply of water and the ability to decouple H₂ production from electrical infrastructure with its additional costs.

Transition

'New era': Orsted to make first hydrogen from offshore wind this year after project green light