Ørsted scraps flagship European green fuels project
Danish company says market for e-fuels is developing more slowly than expected
Ørsted, the offshore wind developer blighted by a botched expansion in the US, has scrapped plans for a plant in Sweden to develop greener fuels just over a year after starting construction.
The Danish company said on Thursday it would no longer build the plant in Örnsköldsvik, saying that the market for so-called e-fuels in Europe was developing more slowly than expected.
The decision left Ørsted with an impairment charge of DKr3.2bn ($470mn) in the first half, which also included the costs of a delay to an offshore wind farm in the US and other factors.
Ørsted had previously described the proposed plant in Örnsköldsvik as “the largest e-methanol project under construction in Europe” and intended to open it next year.
The abandonment of the project came as Ørsted’s results showed signs that the company was beginning to recover from a bruising period in which an overly aggressive expansion in the US left it with significant impairment charges on projects and triggered a dividend cut.
Mads Nipper, chief executive, said he was “pleased” with the company’s half-year results, with operations performing well and higher earnings from offshore wind farms.