ADP A/S makes huge investments in PtX infrastructure

ADP A/S establishes the subsidiary ADP Energy Infrastructure A/S and strengthens its market activities in the development of central infrastructure supporting Denmark’s vision up to 2030 to reduce CO2 emissions. With estimated total investments of more than DKK 1.0 billion within 2030, the new company is the natural next strategic step leading up to the development of the infrastructure supportive Fredericia and the Triangle Region of being a future hub for the production of green fuels.

The Triangle Region has the right combination of central infrastructure, Denmark’s large companies within energy and utility, a refinery, infrastructure for the transmission of heat power and a coming hydrogen plant as well as a high concentration of purchasers of green fuel for the decarbonization within aviation, sea and road transport, all that makes the Triangle Region and especially Fredericia one of the leading hubs for CO2 and production of green fuels.

“The establishment of the subsidiary is a natural extension of ADP’s strategic development with very large investments in new and future proof infrastructure supporting the Triangle Region’s as well as Denmark’s vision for a fossil free society. As an extension of our ports and Taulov Dry Port our investment in new infrastructure is a vital element in our long-term development of our core position as infrastructure provider. In that way we can continue our growth and exploit the business potential being the link in the PtX-value chain”, says Erik Østergaard, Chairman of the Board of Directors in ADP A/S.

Infrastructure for PtX sector coupling
The establishment of the new infrastructure subsidiary is based on a strategic proces with  in-depth analyses and mapping of the commercial potential in the development of the infrastructure in Fredericia and the Triangle Region. The new infrastructure will support the development of new activities due to sector coupling in the PtX value chain with utility, production and distribution of CO2 and green fuels in order to achieve the climate target of 70% reduction by 2030 set by the Danish governement.

Analyses show, that the total potential for CO2 in the Triangle Region amounts more than 1 million tonnes leading up to 2030 and several million tonnes up to 2040. Moreover, hydrogen and e-methanol for heavy transport within shipping as well as green fuels for the aviation industry.  

”ADP has worked with our corporate strategy and concrete business cases in the last 2 years and the first infrastructure projects are already planned. Our analyses indicates, that we will release a large commercial potential by the investment in infrastructure of up to DKK 1.0 billion. Therefore we are already in dialoque with potential investors. We haven’t yet closed any agreements, and the proces is still open, explains Rune D. Rasmussen, CEO in ADP A/S.

Green hub of the future
With its geographical location and existing infrastructure, The Triangle Region is the only place in Denmark where integration of infrastructure, utilities, production, distribution as well as the use of excess heating can provide the production of large-scale green fuels in Denmark. It will be a natural step for ADP, which already has a strong market position within the green transition of the heavy duty transport sector with the development of a multimodal transport hub with the Port of Frederica and Taulov Dry Port to take a leading role in the PtX- value chain.

”Our central location in Denmark’s infrastructure hub with a high concentration of logistic and transport companies demanding green fuels makes us a key player in the decarbonisation of the transport industry – i.e. Billund Airport. The development of infrastructure for the distribution of all kinds of products for PtX-processes is close to our core business as port infrastructure company. Therefore we see us as key player in the transportation of CO2, hydrogen, technical water and methanol, with a natural focus on CO2 in the first step”, continues Rune D. Rasmusen.

The leading hub for PtX and CCUS will be realised in partnerships and sector integration between the large stakeholders in the Triangle Region, i.e. Crossbridge Energy, Billund Airport, Ørsted. Everfuel, TVIS, Nature Energy, Triangle Energy Alliance and the municipalities in the Region.

ADP Energy Infrastructure A/S will by 2026 establish new infrastructure in order to capitalise the areas effecient infrastructure and allow sector coupling between the stakeholders in the green PtX value chain in order to reach the goals for the green transition. At the same time, the stakeholders will contibute to growth and the creation of jobs in the industry. 

”With our planned infrastructure projects, we have prioritized overall flexibility and in that way we will be able to support different types of CO2 supplyers and buyers and at the same time support the total CCUS value chain adapted to the current market situation. Our approach is to scale the investments and the infrastructure in order to facilitate industrial growth by increasing import and export for the production of green fuels, thereby strenthening the postion of Denmark and the Triangle Region”, says Rune. D. Rasmussen.

Watch more in the explainer video:

More informations:
Rune D. Rasmussen
Tel.: 29692011

Erik Østergaard
Chairman of the Board of Directors in ADP A/S