Today at a press conference in Esbjerg, CIP has unveiled plans for the establishment of Europe’s largest production facility of CO2-free green ammonia.
The project will be located in the town of Esbjerg on the west coast of Denmark, where the Power-to-X-facility will convert power from offshore wind turbines to green ammonia. This will be used by the agriculture sector as CO2-free green fertilizer and by the shipping industry as CO2-free green fuel. The excess heat will be used to provide heating for around one third of the local households in Esbjerg. The facility will consist of 1GW electrolysis. Ultimately, this is expected to reduce CO2-emissions by about 1.5 million tons CO2 yearly – or the equivalent to removing 730,000 cars from the roads permanently.
The announcement is made in collaboration with market leaders within the agriculture and shipping industries. Together with CIP, they have signed a memorandum of understanding, in which the signatories commit themselves to work towards realizing the establishment of the facility.
CIP, the world’s largest dedicated fund manager within greenfield renewable energy infrastructure investments, is looking forward to further collaboration with the companies, to bring the facility from the planning stage to the building stage:
“With this project, we support further development to cut CO2 emission from agriculture and shipping in Denmark, through the use of CO2-free green fertilizers and green fuel. The agriculture and shipping industries are industries, which are embarking on a journey of decarbonization. Solutions such as Power-to-X are key for these industries to take the next big leap within the decarbonization,“ says Christian Skakkebæk, Senior Partner in CIP, responsible for the Energy Transition Fund.
Part of CIPs new Energy Transition Fund
Next generation renewable energy infrastructure assets, such as P-t-X, have become attractive as industrial scale investment opportunities. This has been driven by rapid technological advancements, significant cost reductions in renewable energy, and the global energy transition with an ambition to achieve net-zero companies and economies.
As market pioneer and global market leader in renewable infrastructure investments, CIP is uniquely positioned to capture this new market opportunity and has recently announced its new Energy Transition Fund to invest in P-t-X and other next generation renewable technologies. This enables investors to participate in the decarbonization of sectors, such as agriculture and transportation, in addition to renewable electricity generation.
About Copenhagen Infrastructure Partners (CIP)
Copenhagen Infrastructure Partners (CIP) is a Danish fund management company focused on renewable energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, storage, transmission and distribution, Power-to-X and other energy assets. CIP has approximately 130 employees and offices in Copenhagen, New York, London, Hamburg, Utrecht and Tokyo.
CIP manages seven funds with around EUR 14 billion in commitment under management. The funds have made more than 20 investments in large scale energy infrastructure assets totaling almost 8 GW in capacity (including transmission projects) across the US, Canada, the UK, Germany, Spain, and Taiwan. In addition, more than 20 green-field energy infrastructure projects are in process to reach final investment decision and start of construction within the next 3 years. Investors in the funds include several blue-chip institutional investors from the Nordics, Continental Europe, the UK, Israel, Taiwan, Korea, Australia, and multilateral organizations e.g. EIB. The investors in CIP’s funds comprise mainly pension and life companies and large family offices
CIP was established in 2012 by senior executives from the energy sector in cooperation with PensionDanmark and is today a global leader, market pioneer and the largest financial sponsor with a dedicated energy infrastructure focus. In December 2020, Vestas acquired a 25% stake in the CIP parent companies and will get representation at the CIP Holding board maintaining unchanged fund management activities carried out by CIP.