Under the letter of intent (LoI) the planned facility in Idomlund, western Denmark, is expected to have a 150MW electrolyser capacity, powered by onshore wind and solar PV, which Skovgaard has said it has already commenced the development of.

The Danish partners have said, if the necessary offshore wind capacity and hydrogen infrastructure in and out of the country are established, the Idomlund facility’s electrolysis capacity could be increased to more than 3GW, with intentions of seeing the hydrogen produced exported on a large-scale.

It is hoped the project will contribute to Denmark’s target of 4-6GW of electrolysis capacity by 2030, as a wider part of energy transformation on the European continent.

“It’s a historically good day for the economic development of western Denmark,” said Niels Erik Madsen, CEO of Skogaard Energy. “With this collaboration with Ørsted, we’re shifting gears and accelerating the local, national, and international green transition. We’re proud of the collaboration and of contributing to this development.”

In October (2022), Skovgaard and its partners Topsoe and Vestas said it had broken ground on the ‘world’s first’ dynamic green ammonia plant in Lemvig, Denmark.

Read more: Danish partnership breaks ground of green ammonia plant

Anders Nordstrøm, Chief Operating Officer of Ørsted P2X, commented, “Europe needs green solutions at scale to fight climate change and to secure regional energy independence. Few countries have as strong a potential to become a green energy exporter as Denmark due to its abundant and low-cost offshore wind resources, which are supplemented by onshore wind and solar PV.

“By partnering with Skovgaard Energy on the Idomlund project, Ørsted is entering one of the most strategically advantageous projects to leverage the strong fit between large-scale renewable energy and Power-to-X.”