Orsted abandons flagship e-methanol project

Danish firm takes $220m hit as it halts Europe’s largest project in setback for transition to green shipping fuels

Danish renewable energy company Orsted has halted construction of Europe’s largest synthetic methanol production project, citing the slower-than-expected development of Europe’s green fuels markets. The FlagshipONE project, based at Ornskoldsvik in northern Sweden, had been scheduled to start up in 2025, with initial output of 55,000t/yr of e-methanol produced from electrolytic hydrogen and biogenic CO₂. Orsted’s decision to abandon the project more than a year into its construction has resulted in it booking a DKK1.5bn ($220m) impairment loss. “The liquid e-fuel market in Europe is developing slower than expected, and we have taken the strategic decision to de-prioritise our efforts within