Ørsted has shut down a large e-methanol project in Sweden and is writing off an amount of billions invested in the project. The plan was to build a plant - Flagship One - in Örnsköldsvik, with an expected capacity of 55,000 tonnes of e-methanol per year.

The project was launched in 2022, and was planned to be the largest e-methanol project in Europe at the time. Construction started last year, but now everything has been put on hold. Ørsted justifies the decision with low market growth and difficulties in securing long-term customers.

"Although we were aware of the significant uncertainties and risks associated with the development of a pioneering and immature e-fuel project and market at the time of decision, it was a strategic choice to take a leading position in shaping the industry", Ørsted writes about the matter in its half-year accounts.

"The business case has worsened due to the inability to enter into long-term off-take contracts at sustainable prices and significantly higher project costs," the report further states.

The plan was for the plant to start production next year.