Ørsted and Esvagt Enter Agreement on New Green Fuel Vessel for Offshore Wind Operations

Published on: 13 April 2022
by KnowESG

Ørsted, a Danish-based multinational power company, has signed an agreement with Esvagt, in the offshore wind and oil & gas business, to construct the world's first green fuel vessel for offshore wind operations. Both companies have committed to decarbonising the maritime industry and reducing emissions from offshore operations.

The new service operational vessel (SOV) is the world's first green fuel vessel under construction to accelerate the decarbonisation of both the maritime and offshore wind sectors.

With the help of batteries and duel-fuel engines, the green fuel vessel would run on renewable e-methanol produced from wind energy and biogenic carbon.

Esvagt will start the construction later this year, with Ørsted providing the vessel with e-methanol.

The vessel is expecting commissioning in 2024, which serves the Hornsea 2 offshore wind farm off the east coast of the UK.

Esvagt chief strategy and commercial officer Søren Karas said: “This is an important milestone with a meaningful impact on the green transition. Ørsted and Esvagt share an ambition for a sustainable future, and as an industry leader, we are committed to taking the lead in decarbonising the maritime industry.”

Ørsted can support carbon-neutral initiatives in operations by 2025 through the investment. It also helps it achieve net-zero emissions across its value chain by 2040.

Over the last two years, Ørsted invested in developing several green fuel projects, including three focused on producing e-methanol for maritime transport. The project on the US Gulf Coast will provide 3,00,000 tonnes of e-methanol for AP Moller-Maersk's fleet of zero-emissions vessels.

Another project located in Sweden, the Green Fuels for Denmark and FlagshipONE, will provide around 50,000 tonnes of e-methanol for shipping between 2024 and 2025.

Ørsted offshore operations head Mark Porter said: “We have set clear targets and a clear direction towards net-zero emissions, and this new methanol-powered SOV is a tangible proof of our clear commitment to realise these targets.”