REG-Ørsted A/S Ørsted partners with Breakthrough Energy Catalyst, the European Commission, and the European Investment Bank for FlagshipONE

Oersted A/SAnnouncement

01/12/2023 12:00

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   Ørsted A/S (Orsted)
   Ørsted partners with Breakthrough Energy Catalyst, the European
   Commission, and the European Investment Bank for FlagshipONE

   01-Dec-2023 / 12:45 CET/CEST

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   1.12.2023 12:45:16 CET | Ørsted A/S | Investor News

   Today, at COP28, Ørsted announced that the EU-Catalyst Partnership, which
   consists of the European Commission, Breakthrough Energy Catalyst, and the
   European Investment Bank, has vowed to support Ørsted’s FlagshipONE
   project, highlighting the innovative nature of this project and its
   potential to contribute to the decarbonisation of shipping. FlagshipONE is
   Europe’s largest e-methanol plant and is currently the world’s strongest
   proof point that carbon-neutral shipping is possible.

   Breakthrough Energy Catalyst is a first-of-its-kind model, bringing
   together government partners and leading organisations from across the
   private sector to fund and scale emerging climate technologies.
   Breakthrough Energy Catalyst will acquire a 15 % equity interest in
    1 FlagshipONE and provide a grant to the project, subject to the
   fulfilment of funding conditions. With the funding supporting the project,
   Ørsted will seek to sign long-term offtake agreements, creating a new
   model for the shipping industry to purchase fuel, which will be needed for
   future projects to secure the capital required to scale production of
   green fuels.

   In addition, the project is also expected to receive a grant from Horizon
   Europe and a quasi-equity investment from EIB through InvestEU. EU funding
   for the partnership is from Horizon Europe and the EU Innovation Fund
   within the framework of InvestEU according to the established governance
   procedures. The EU funding will contribute to the first commercial
   demonstration of the technology of FlagshipONE. Located in Örnsköldsvik in
   northern Sweden, FlagshipONE is expected to produce up to 55,000 tonnes of
   e-methanol each year to enable the shipping industry offtakers to achieve
   a >95 % reduction in carbon emissions versus when using conventional
   fossil fuels.

   Werner Hoyer, President of the European Investment Bank, says: “Putting
   the world on track for net-zero will require game-changing technologies,
   especially for the hard-to-abate sectors in the economy. Today, we’re
   announcing our intention to support – under the EU-Catalyst Partnership –
   Ørsted’s FlagshipONE project to decarbonise the heavy shipping industry.
   Through our cooperation with the European Commission and Breakthrough
   Energy Catalyst, we seek to finance the development and scale-up of
   innovative solutions that are essential for transitioning to climate
   neutrality.”

   Mads Nipper, Group President and CEO of Ørsted, says: “We're extremely
   proud to partner with three of the most forward-thinking and ambitious
   leaders in the green transformation, highlighting that FlagshipONE is
   truly a breakthrough project. Ørsted’s history of scaling technologies
   from first-of-a-kind to widespread adoption – often with support from EIB
   – gives us confidence that, together with Breakthrough Energy Catalyst,
   the European Commission, and EIB, we can apply that hard-won experience to
   delivering the maturation of the European P2X industry.”

   Rodi Guidero, Executive Director of Breakthrough Energy and Managing
   Partner of Breakthrough Energy Ventures, says: “Today’s announcement
   demonstrates the tangible impact of Breakthrough Energy Catalyst’s
   approach. This collaboration helps advance FlagshipONE – from finalising
   development, commencing construction, and, ultimately, achieving
   operations. Together, we’re providing a blueprint for accelerating
   first-of-a-kind solutions that will help Europe meet its decarbonisation
   goals.”

   Global shipping accounts for around 3 % of global carbon emissions, and
   the sector is a focus area for Ørsted as the company expands its presence
   in green fuels across Northern Europe and the US. FlagshipONE is the first
   e-methanol project in Ørsted’s green fuels pipeline. The company is also
   developing a 300,000 tonnes/year e-methanol project in the US Gulf Coast
   area, which was recently awarded funding by the US Department of Energy as
   part of the US ‘Hydrogen Hubs’ initiative. There are 230 dual-fuel ships
   in operation or on order, 47 % of which were announced this year,
   highlighting the rising interest from shipping companies.

    2 FlagshipONE is located on the grounds of the Swedish biomass-fired
   combined heat and power plant ‘Hörneborgsverket’ in Örnsköldsvik, operated
   by Övik Energi. The e-methanol from FlagshipONE will be produced using
   renewable energy, which is almost exclusively the electricity source in
   this part of Sweden, and biogenic carbon dioxide captured from
   Hörneborgsverket. In addition, FlagshipONE will use steam, process water,
   and cooling water from Hörneborgsverket, and excess heat from the
   e-methanol production process will be delivered back to Övik Energi and
   integrated into their district heating supply.

   For further information, please contact:

   Media Relations

   Jakob Gøtzsche Vesterager

   +45 99 55 78 21

    3 javen@orsted.com

   Investor Relations

   Rasmus Keglberg Hærvig

   +45 99 55 90 95

    4 ir@orsted.com

   About Ørsted

   The Ørsted vision is a world that runs entirely on green energy. Ørsted
   develops, constructs, and operates offshore and onshore wind farms, solar
   farms, energy storage facilities, renewable hydrogen and green fuels
   facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate
   Change A List as a global leader on climate action and was the first
   energy company in the world to have its science-based net-zero emissions
   target validated by the Science Based Targets initiative (SBTi).
   Headquartered in Denmark, Ørsted employs approx. 8,000 people. Ørsted's
   shares are listed on Nasdaq Copenhagen (Orsted). In 2022, the group's
   revenue was DKK 132.3 billion (EUR 17.8 billion). Visit  5 orsted.com or
   follow us on  6 Facebook,  7 LinkedIn,  8 Instagram and  9 X.

   About EU-Catalyst partnership

   The EU-Catalyst Partnership brings together the Commission, the European
   Investment Bank, and Breakthrough Energy Catalyst. It was first announced
   at the Mission Innovation Ministerial Conference in June 2021 by
   Commission President Ursula von der Leyen and Bill Gates, founder of
   Breakthrough Energy. The partnership will mobilise up to EUR 820 million
   between 2022-2026 to accelerate the deployment and rapidly commercialise
   innovative technologies that will help deliver on the European Green Deal
   ambitions and the EU's 2030 climate targets. Each euro of public funds is
   expected to leverage three euros of private funds. Investments will be
   directed towards a portfolio of EU-based projects with high potential in
   five sectors: renewable hydrogen; sustainable aviation fuels; direct air
   capture; long-duration energy storage, and decarbonisation of industry.

   About Breakthrough Energy

   Breakthrough Energy is committed to accelerating the world’s journey to a
   clean energy future. The organization funds breakthrough technologies,
   advocates for climate-smart policies, and mobilizes partners around the
   world to take effective action, accelerating progress at every stage. 

   Breakthrough Energy Catalyst is a novel platform that funds and invests in
   first-of-a-kind commercial projects for emerging climate technologies. By
   investing in these opportunities, Catalyst seeks to accelerate the
   adoption of these technologies worldwide and reduce their costs.

   Catalyst currently focuses on five technology areas: clean hydrogen,
   sustainable aviation fuel, direct air capture, long-duration energy
   storage, and manufacturing decarbonization. In addition to capital,
   Catalyst leverages the team’s energy-infrastructure-investing and
   project-development expertise to work with innovators on advancing their
   projects from the development stage to funding and ultimately, to
   construction. Learn more about Breakthrough Energy and Catalyst at
    10 breakthroughenergy.org.

   About the European Investment Bank

   The EIB is the lending institution of the EU, owned by its Member States
   and makes long-term finance available for sound investment to advance the
   EU’s policy goals. In 2019, the EIB’s Energy Lending Policy was adopted to
   end financing to any unabated fossil fuels energy projects, including
   natural gas, the first Multilateral Development Bank (MDB) to do so. In
   2021, the EIB became the first MDB to align our financial activities with
   the Paris Agreement.

   Through its  11 Climate Bank Roadmap, the EIB Group aims to support €1
   trillion of investment in climate action and environmental sustainability
   through the critical decade, 2021-2030. The EIB committed to increasing
   investment in climate action and environmental sustainability to more than
   50 % of the EIB’s annual lending by 2025 – last year, that was exceeded
   with 58%.

   About the European Commission

   The European Commission is part of the executive of the European Union.
   The Commission has a range of policies and programmes to deliver on its
   climate ambitions. Under the European Green Deal, the ‘Fit for 55' package
   was adopted in July 2021 with the aim of cutting greenhouse gas emissions
   by at least 55% by 2030.The EU-Catalyst partnership is one of the key
   actions through, which the European Commission seeks achieve this goal
   through mobilizing private funding through public support. 

    12 Horizon Europe is the EU's research and innovation framework programme
   worth €95.5 billion (2021-2027). It dedicates 35% of its budget to climate
   action. At the same time, the programme also supports a range of
   partnerships which mobilise private funding to deliver on pressing global
   challenges and modernise industry through research and innovation. The
   programme also includes the  13 European Innovation Council (EIC) that
   supports start-ups and companies in the whole innovation chain, from
   research to validation, acceleration and commercialization. 

   The  14 Innovation Fund is one of the world’s largest funding programmes
   for the demonstration of low- and zero-carbon innovative solutions and
   technologies funded entirely from  15 EU Emissions Trading System (EU ETS)
   revenues and estimated at €40 billion until 2030. The Fund has so far
   provided almost €7 billion in grants for over 100 projects through calls
   for proposals. On 23 November 2023, the Innovation Fund opened its 7^th
   call for proposals and its first auction.

   The InvestEU programme provides the European Union with crucial long-term
   funding by leveraging substantial private and public funds in support of a
   sustainable recovery. It also helps mobilise private investments for the
   European Union’s policy priorities, such as the European Green Deal and
   the digital transition. The InvestEU programme brings together under one
   roof the multitude of EU financial instruments currently available to
   support investment in the European Union, making funding for investment
   projects in Europe simpler, more efficient and more flexible. The
   programme consists of three components: the InvestEU Fund, the InvestEU
   Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented
   through financial partners that will invest in projects using the EU
   budget guarantee of €26.2 billion. The entire budget guarantee will back
   the investment projects of the implementing partners, increase their
   risk-bearing capacity and thus mobilise at least €372 billion in
   additional investment.

       Attachments

     •  16 FlagshipONE Digital Rendering.jpg
     •  17 FlagshipONE EN.pdf

   News Source: Ritzau

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          DK0060094928
   Category Code: MSCM
   TIDM:          Orsted
   Sequence No.:  289250
   EQS News ID:   1787733


    
   End of Announcement EQS News Service

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