ADP A/S invests heavily in PtX infrastructure
ADP A/S establishes the subsidiary ADP Energy Infrastructure A/S and strengthens its market-oriented efforts in the development of key infrastructure for the benefit of Denmark's green transition. With estimated investments of more than DKK 1 billion by 2030, the new subsidiary will be the next strategic step in the further development of Fredericia and the Triangle area's infrastructure into the future hub for PtX,CO2 capture and storage and production of green fuels.
The combination of the right infrastructure, Denmark's major energy and utilities companies, a refinery, heat transmission and a future hydrogen plant, as well as customers for green fuels in aviation, shipping and road freight transport, gives the Triangle area, and Fredericia in particular, the very best prerequisites for becoming one of Denmark's leadingCO2 hubs and a hub for the production and sale of green fuels.
"The establishment of the subsidiary is a natural extension of ADP's strategic development, where significant investments in new and future-proof infrastructure will support the green transition objectives of the Triangle region and Denmark. Based on ADP's ports and Taulov Dry Port, we are establishing the necessary infrastructure, which is a key element in further developing our position as an infrastructure provider. In this way we can continue to grow and exploit the future business potential of becoming the link in the PtX value chain", says Erik Østergaard, Chairman of ADP A/S.
Infrastructure is a prerequisite for sector coupling
The establishment of the new infrastructure company was preceded by a lengthy strategic process of analysis and mapping of the potential of the Triangle area and Fredericia for further development of the area's central infrastructure. The infrastructure will support sectoral interconnection across the supply, production and distribution ofCO2 and green fuels in support of Denmark's climate objectives up to 2030. Analyses have shown that the total potential forCO2 is more than 1 million tonnes by 2030 and several million tonnes by 2040. In addition, hydrogen is needed for the future large-scale production of green fuels such as e-methanol for shipping and sustainable aviation fuels.
"ADP has been working on strategy processes as well as concrete business cases for the past 2 years and already has the first infrastructure projects under planning. Our analyses indicate that in an initial phase there will be business potentials in infrastructure investments of up to DKK 1 billion by 2030, which is why we are already in serious dialogue with potential investors. However, we have not yet closed any deals, so the process remains open", explains Rune D. Rasmussen, CEO of ADP A/S.
The green hub of the future
With its geography and infrastructure, the Triangle is the only place in Denmark where the integration of infrastructure, supply, production, distribution and utilisation of surplus heat can form the framework for Denmark's future large-scale production of green fuels. It would be natural for ADP, which has already delivered a climate-focused effort by linking the Port of Fredericia and Taulov Dry Port to the transformation of heavy transport, to play a key role in the PtX value chain.
"Our central location in Denmark's largest transport and logistics centre means that there will soon be a large potential market for green fuels for heavy transport, such as Billund Airport. The fact that we, as an infrastructure owner, can develop new infrastructure for the transport of all types of products that are part of processes related to the green fuels of the future, is within our existing core business. In this way, we see ourselves as a future key player when it comes to transportingCO2, hydrogen, technical water and methanol, whereCO2 is naturally the focus here in a first phase", continues Rune D. Rasmussen.
The realisation of a leading hub for future PtX andCO2 capture and storage will naturally take place in partnerships and through sector integration between actors in the Triangle area such as Crossbridge Energy, Billund Airport, Ørsted, Everfuel, TVIS, Nature Energy, Triangle Energy Alliance and the municipalities in the Triangle area.
By 2026, ADP Energy Infrastructure A/S will have established infrastructure that will link the various pivotal points so that the players in the Triangle region can together realise the potential of Denmark's green transition. At the same time, companies will be able to make a significant contribution to growth and job creation in industry.
"With the infrastructure we plan to establish, we have prioritised an overall flexibility that allows us to support both multiple types ofCO2 suppliers and buyers, while enabling both storage and use ofCO2 depending on the current market situation. Our approach is to scale up the infrastructure and investments to enable industrial growth based on increasing exports and imports for the production of green fuels, so that Denmark and the Triangle area can act and create an international positioning", concludes Rune D. Rasmussen.