Orsted has halted the development of its FlagshipONE eMethanol project in northern Sweden, citing slow market progress and difficulty in securing long-term offtake contracts. Announced in 2022, the project aimed to produce e-methanol from green H₂ and biogenic CO₂ using renewable energy.

However, challenges including the high cost of sustainable methanol and a lack of commitment from shipping firms for long-term contracts led to the decision. Orsted's regional CEO noted that the industry’s regulatory and economic environment has not yet matured enough to support such projects, leading to the cancellation. The decision resulted in significant financial impacts, including cancellation fees and impairments. Despite this setback, Orsted continues to believe in the future of renewable H₂ and plans to focus on this area.

Source: Hydrogen Economist

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