EMEA News
Ørsted Cancels Green Methanol Plant Project in Sweden
Green energy firm Ørsted has cancelled plans to build a synthetic methanol plant in Sweden, citing slower-than-expected demand growth.
The firm will now not go ahead with the development of the FlagshipONE project in Northern Sweden, it said in first-half results this week.
The plant was first announced in December 2022, and had been expected to ramp up to producing 55,000 mt/year of synthetic methanol after coming online next year.
"The liquid e-fuel market in Europe is developing slower than expected, and we have taken the strategic decision to de-prioritise our efforts within the market and cease the development of FlagshipONE," Mads Nipper, CEO of Ørsted, said in the statement.
"We will continue our focus and development efforts within renewable hydrogen, which is essential for decarbonising key industries in Europe and closer to our core business.
"We maintain a strong focus on de-risking project execution and prioritising growth options with the highest potential for value creation."
The cancellation of the project led to an impairment loss of DKK 1.5 billion ($221 million).
