The Esbjerg-based Power-to-X (PtX) project which will produce green ammonia for agriculture and shipping is still under development. The signing of the grid connection agreement is an important step on the way to bringing the 1GW plant in service by 2027.
The agreement means that the plant will be connected to the electric grid enabling it to receive electricity, but at the same time the plant will be able to function as a buffer or storage facility, which in a sense can return surplus electricity to the grid in times of electricity shortage.
PtX goes hand in hand with wind and solar
As we phase out fossile energy forms and our reliance upon fluctuating power sources such as wind and solar increases, balancing the production and use of electricity in the electric grid will pose a far bigger challenge in the future than today. Large-scale PtX plants are part of the solution as they are particularly adept at making the most of renewable energy sources when they are abundant, and can source energy back to society when the sun is not shining or the wind is not blowing.
- The signing of the grid connection agreement is a key milestone which showcases the continued development of the PtX industry in Denmark, and we are thrilled to be first movers on this together with Energinet. The green transition demands rethinking and rebuilding large parts of the existing energy infrastructure, and we are happy to make a financial contribution to those efforts. The continued build-out of renewable energy is dependent on PtX as balancing agent, and that symbiosis will become decisive for the green transition and ultimately benefit people and enterprises across society, says David Dupont-Mouritzen, Project Director at HØST PtX Esbjerg.
Keeping momentum is key
For the HØST project director, the signing of the grid connection agreement is a milestone that maps out the future energy landscape. In order for the upcoming Danish PtX industry to realize its potential and commit to significant investments, it is essential that a framework for taxation and regulations is sanctioned by Danish regulators very soon.
- We are planning a 1.4bn EUR project without actually knowing the exact taxation and tariff scheme which we will be operating under. Needless to say, it is paramount that Danish authorities act in accordance with the development in the industry, says David Dupont-Mouritzen, who hopes that the grid connection agreement can help to accelerate matters.
- Keeping momentum is decisive these years where we need to create new solutions that will benefit the climate and at the same time make us independent of Russian gas. We need to speed up the processes for establishing green plants, while of course still adhering to current legislation and consulting all affected parties. But it is also extremely important that we act on the alarming situation we are in. CIP is taking one step ahead which hopefully raises the bar and points towards a path which leads Esbjerg and Denmark to a position as PtX first movers. There is a need to make the industry, the market, regulations and the energy infrastructure act together in harmony, and the grid connection is but one example of how important infrastructure is to the future of the plants, David Dupont-Mouritzen underlines.
The electric grid of the future
Danish transmission system operator (TSO) Energinet is busy shaping an electric grid that is geared to a future with renewables as main power source. The grid connection agreement with HØST is a central exercise in this process.
- We are facing a gigantic task in securing the stability and balance of the future electric grid where the large PtX plants will both consume power but also act as important, stabilizing hubs in our infrastructure. The PtX plants allow us to balance the increased share of renewable energy in our energy mix, and it follows that the plants will have a huge impact on the way we plan for the future. That is also why we take great care to engage in close dialogue with alle stakeholders, and we expect more of these agreements in the coming years, says Henrik Riis, Director for Transmission systems at Energinet, and elaborates;
- The development of the infrastructure is essential to meet future needs, and it is a joint task. With the first grid connection agreements for large-scale PtX plants we are taking a novel step to create better conditions for security of supply and full utilization of renewable energy
Photo: (From the left) David Dupont-Mouritzen, Project Director HØST; Henrik Riis, Director Transmission Systems, Energinet and Claus Vissing-Jørgensen, EPC Project Director HØST.