Ørsted Backs Out of Several Green Hydrogen Projects Amid Strategic Shift

Ørsted exits major green hydrogen projects, including H2RES and "Green Fuels for Denmark," to refocus on core wind energy business. Learn more about the strategic shift and its impact on the renewable energy landscape.

In a significant development within the renewable energy sector, Danish offshore wind giant Ørsted has announced its withdrawal from several high-profile wind-powered green hydrogen projects after conducting a strategic review of its Power-to-X (P2X) ventures. The company has decided to step away from the Danish government-backed "Green Fuels for Denmark" project and the smaller H2RES hydrogen production initiative near Copenhagen, according to multiple reports.

Ørsted’s Power-to-X Reassessment

Power-to-X (P2X) refers to the process of converting renewable energy, primarily from wind, into other sustainable energy forms, such as green hydrogen. Ørsted had initially positioned itself as a major player in P2X technologies, with the goal of driving green hydrogen solutions powered by offshore wind.

The H2RES project, which aimed to use 7.2 MW of offshore wind power to fuel a 2 MW electrolyzer for green hydrogen production, will no longer move forward. This project was intended to demonstrate how offshore wind energy could be utilized for green hydrogen production, specifically for road transport in the greater Copenhagen area. Ørsted, alongside its consortium partners Everfuel Europe, Nel Hydrogen, Green Hydrogen Systems, and others, has collectively agreed to dissolve the H2RES consortium, citing changing market conditions.

Also Read: Harvard Study Warns of High Costs for Green Hydrogen

“The learnings from H2RES will play a key role for the partners in the consortium in the development of future green hydrogen solutions,” said Robert Duncalf, Ørsted’s head of business development and P2X activities in Europe. “All parties in the consortium see fundamental potential in green hydrogen and will individually continue to explore opportunities in the area as the market matures.”

Green Fuels for Denmark and Other Projects

Ørsted's exit from the ambitious "Green Fuels for Denmark" initiative marks another key withdrawal. The project had been set to develop large-scale green hydrogen infrastructure to power sectors such as aviation, shipping, and heavy road transport. Ørsted’s decision to step away aligns with its evolving focus on its core wind energy business, which includes green hydrogen only as a complementary technology.

The company has also reportedly stepped back from the Oyster green hydrogen project and the initial phase of a P2X initiative with Danish firm Skovgaard Energy, which had targeted 150 MW of electrolysis capacity.

Despite these withdrawals, Ørsted remains committed to the future potential of green hydrogen. Duncalf emphasized that the company still sees the vision behind "Green Fuels for Denmark" as positive, but it is no longer the right fit for the company’s current strategy.