Orsted Secures $100 mn in Federal Funding for Power-to-X Facility in Texas

By Editor


Orsted, a prominent U.S. clean energy developer, has announced its selection by the Department of Energy (DOE) Office of Clean Energy Demonstrations to enter negotiations for up to $100 million in federal funding. The funding aims to facilitate the construction of a pioneering Power-to-X facility, named Star e-Methanol, situated along the Texas Gulf Coast.

Orsted’s project stands among the 33 selected initiatives spanning over 20 states, chosen to showcase commercial-scale decarbonization solutions crucial for transitioning energy-intensive sectors towards achieving net-zero emissions.

Melissa Peterson, Head of Onshore and P2X Americas at Orsted, underscored the pivotal role of e-methanol production in expediting decarbonization efforts within the hardest-to-electrify sectors.

Melissa Peterson highlighted the potential of Orsted’s investments in Texas and the e-fuels industry to generate employment opportunities and foster economic growth within local communities.

With the U.S. industrial and transportation sectors responsible for approximately 65 percent of the nation’s greenhouse gas emissions, Orsted aims to harness its renewable energy portfolio to produce green hydrogen and e-methanol, effectively curbing emissions from these pivotal sectors.

Orsted said the Star e-Methanol facility is anticipated to yield up to 300,000 metric tons of e-methanol annually, offering a sustainable alternative for marine shipping fuel, aviation fuel, and chemical production, traditionally reliant on fossil-derived fuels.

The design of the Star e-Methanol project integrates multiple components to achieve a net-neutral carbon solution. This entails the construction of new onshore wind and solar projects in Texas to power electrolysis for green hydrogen production, alongside the capture of biogenic carbon from industrial operations.

Subsequently, the captured biogenic carbon will be synthesized with green hydrogen to produce e-methanol, resulting in a remarkable reduction of over 90 percent in CO2 emissions compared to conventional marine fuels.

The project’s implementation is forecasted to create 300 employment opportunities during the construction phase and an additional 50 permanent positions for operations and maintenance. A significant portion of the workforce supporting the project will be centered in Houston, where Orsted established a new office in early 2024.

Moreover, Orsted has committed to collaborating with the University of Houston to devise a comprehensive community benefits plan, encompassing workforce development training, STEM initiatives at educational institutions, and support for environmental justice endeavors.

GreentechLead.com News Desk

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