Danish renewable energy producer Ørsted has announced the cancellation of its FlagshipOne green hydrogen-to-methanol project, despite reporting increased operating profits for the first half (H1) of 2024. Operating profit for Ørsted reached DKr14.1 billion in H1 2024, up from DKr10.2 billion in the same period of 2023.
The company’s interim report, released on 15 August, highlighted growth in earnings from offshore facilities and the commissioning of 2 gigawatts (GW) of renewable energy capacity. Group President and CEO Mads Nipper noted that the Greater Changhua 1 and 2a, South Fork, and Gode Wind 3 wind farms contributed to a DKr2.3 billion increase in offshore wind earnings, totalling DKr11.3 billion.
Despite these positive developments, Ørsted decided to halt the FlagshipOne project, which was designed to produce hydrogen-derived fuel for the shipping industry. The decision to cancel the project, made two years after the final investment decision, was attributed to slower-than-expected growth in the European liquid e-fuel market. The cancellation resulted in a loss of DKr1.5 billion in potential revenue for Ørsted.
However, Ørsted remains committed to advancing renewable hydrogen technologies. Mads Nipper commented that the company’s operations, particularly in offshore wind, are performing well. Ørsted is maintaining its EBITDA guidance for the year and has increased earnings expectations for its offshore wind segment.
Since updating its business plan in February, Ørsted has deployed nearly 2GW of renewable energy capacity, enough to power more than 1.5 million homes across three continents.