GreenGo Energy develops 4GW, 8 billion EUR green energy park in Ringkøbing-Skjern municipality
GreenGo Energy cooperates with Ringkøbing-Skjern Municipality to develop a green energy park based on 4GW of renewable hybrid solar and wind energy, which is fed directly to a new Energy Park, where the core will be 2GW electrolysis. The Energy Park will be established at the future Stovstrup 400kV substation east of Tarm in Ringkøbing-Skjern municipality.
The ambition is a production of over 1 million tons of green fuels annually and Megaton, as the project is called, will be one of the largest fully integrated energy parks in the world. The project can become a new landmark for Denmark and help position Denmark as a pioneer in the new P2X industry and hydrogen economy. The Energy Park and the fully integrated renewable energy projects can be operational before 2030 and can thus contribute significantly to achieving Denmark's 2030 targets.
The total investment in the Megaton project is expected to be around DKK 60 billion or 8 billion EUR, more than the budget for two Storebælt (Great Belt) bridges. It is expected that 300-500 permanent local jobs will be created in connection with the Energy Park, renewable energy projects and spin-off companies that will be created by by-products such as surplus heat.
The investment will be made by GreenGo Energy's clients and partners, which include some of the world's largest investors in renewable energy and infrastructure. The Consulting Engineering team working with GreenGo Energy in Megaton's development are COWI, Arkitema, who are specialists in P2X, and New Power Partners, who are specialists in offshore wind energy.
Megaton Energy Park: Architecture
4GW dedicated on- and offshore renewable energy for the Megaton Energy Park
A core prerequisite for competitive P2X projects, besides the need for significant scale, is control of renewable energy in sufficient quantities and with the right pricing. Likewise, it is crucial that the renewable energy production is evenly distributed over the year so that the electrolysis runs optimally with a high constant capacity factor. This requires the right combination of solar and wind energy.
The starting point and prerequisite for Megaton is thus GreenGo Energy’s development portfolio of 4,000 hectares of onshore solar and wind projects in the municipality and in addition 2GW offshore wind that is taken out of GreenGo Energy's development portfolio of offshore wind projects in Denmark, which are primarily applied for under the open-door scheme. The final locations for the energy-producing assets have not yet been determined but will be qualified in close cooperation with Ringkøbing-Skjern municipality and local stakeholders over the coming period. The location in Ringkøbing-Skjern municipality benefits from complementary solar and wind production profiles - a hybrid that can be balanced so that the Megaton electrolysis runs optimally all year round.
The 4GW solar and wind projects will produce 11.5 TWh of green power annually – this corresponds to more than 30% of Denmark's current total power consumption. More than 85% is expected to be consumed directly in the Megaton Energy Park for the production of green fuels.
Karsten Nielsen, CEO of GreenGo Energy comments:
"With the Megaton project and the development of one of the world's largest energy parks in Western Jutland, we will once again put Denmark on the world map as a leader in the transition to 100% green power and the green fuels that are necessary to achieve the global climate goals towards 2050". Karsten Nielsen continues: "We are pleased that the city council in Ringkøbing-Skjern municipality is just as ambitious on the green transition as GreenGo Energy."
New standard for local anchoring and value creation
An infrastructure project of this magnitude will, in addition to a significant contribution to Denmark's transition and direct contribution to achieving the 2030 goal of a 70% reduction in CO2 emissions, create value in many new dimensions for Ringkøbing-Skjern surroundings.
Hans Østergaard, mayor of Ringkøbing-Skjern municipality comments:
"This is by far the most ambitious and promising project we as a city council have been presented with. As Denmark's no. 1 climate municipality, we have for many years been at the forefront of the fight for the climate. Now we have the opportunity to take the lead again. Therefore, I am also excited that GreenGo Energy sees an opportunity to implement a project of this caliber in Ringkøbing-Skjern.
As a municipality, we have some of Denmark's most ambitious climate goals, and the project will be able to fully meet our goal of becoming completely self-sufficient in renewable energy. At the same time, the Megaton project has the potential to add great opportunities to both Tarm and the rest of the municipality simply because of the economy behind the project. In addition, there are the business opportunities that will arise in the wake. Vertical farming can be mentioned here, but it is only one of many possible new professions.
For all these and many more reasons, the city council agrees to cooperate with GreenGo Energy on the development and realization of the Energy Park in Stovstrup with associated energy production."
In addition to the 300-500 permanent local jobs expected because of the project, part of the surplus heat of more than 1TWh will be able to contribute to the local district heating system, which can be expanded as part of the project. This will help ensure a green and affordable heat supply for the long-term benefit of a large part of the municipality's citizens. Surplus heat and green power from the portfolio of new wind and solar parks on land and water are also intended to be used for new industries such as greenhouses and vertical farming on the industrial area directly south of the Energy Park, which is zoned for such purposes according to the existing municipal plan.
Finally, work is underway on new sustainable and long-term solutions to local co-ownership and local anchoring. The individual elements that can be included in the overall solution will be specified together with the municipality over the coming period to ensure the greatest possible value.
In addition, it is the intention that project shares will be offered locally in a new model developed by GreenGo Energy, to ensure the possibility of true co-ownership locally. The final models for local value creation will be developed as part of the project.
Stovstrup 400kV substation as a neighbor – a hub for green electricity and hydrogen
For some time, GreenGo Energy has worked closely with landowners and neighbors of the 350-hectare land adjacent to the future Stovstrup 400kV substation east of Tarm – areas that the municipality has already designated for energy-intensive industries such as P2X.
A location at one of the country's largest substations is seen as strategically important. Here you can handle and balance the large amounts of energy and overproduction on sunny days with wind, but you can also have an alternative to the planned strategy of using direct lines, where all production from the associated solar and wind parks is taken directly to your own substation station and consumed in the Energy Park.
" The location at the Stovstrup substation is ideal as an existing hub for power transmission with the 400kV expansion, but also in light of the planned hydrogen pipeline to Europe, which is under development and is planned to be established by 2030. There are also ample amounts of wastewater available at Tarm. Water is often a scarce resource at major P2X plants both in Denmark and internationally. When using wastewater, the concept only becomes more circular," says Anders Heine Jensen, Director of P2X and Offshore Wind at GreenGo Energy, about the primary considerations in relation to the choice of location for GreenGo Energy's first Megaton Energy Park.
The project is in line with the municipality's strategy
Ringkøbing-Skjern municipality has always been a leader in the green transition. The municipality has a long history and experience in setting up wind farms, solar parks and biogas plants, and based on this experience, the municipality therefore wants new electricity production plants to contribute multifunctionally and value-creating rather than just being energy production plants.
Ole Nyholm Knudsen, chairman of the Technical and Environmental Committee in Ringkøbing-Skjern municipality says: "In connection with the national screening of possible locations for Energy Parks, a unanimous city council has indicated a possible location for an energy park at Stovstrup. I am therefore pleased that GreenGo Energy chooses to work from this area, and that they also present a concept with great value creation and understanding of the local area.
In the current energy crisis, it is of particular interest that the project opens the possibility of offering cheap district heating to the municipality's citizens. In addition, the project's goal is that areas for solarparks will continue to be used for agricultural operations through co-operation with biogas plants, where the purpose is to capture CO2, which will be used to make green e-methanol. The project is also in accordance with the municipal strategy in the energy area and with respect for the Master Plan for Tarm."
Megaton Energy Park: Integration in surroundings with new recreative areas
Inspiration for other municipalities
By 2030, Denmark’s ambitions is to quadruple the amount of green power on land and build an electrolysis capacity of 4-6GW. Here, the Megaton Energy Park plays a significant role in fulfilling these ambitions.
Kristian Jensen, CEO of Green Power Denmark says:
"This project is big in every possible way. A lot of praise should go to GreenGo Energy for making the green investment and, together with Ringkøbing-Skjern municipality, showing the way for how to work together effectively and with local support to establish green energy projects. There is a lot of learning to be gained from the project, and I hope that other municipalities will be inspired. Because we need more people to take responsibility for the climate crisis and make decisions to build more renewable energy. The municipalities that dare to take the lead will also reap the benefits in the form of jobs. At the same time, we need clarity on the regulatory framework for Power-to-X and hydrogen infrastructure."
Megaton Energy Park: A P2X atoll that creates a holistic green experience
In collaboration with COWI and Arkitema, a unique concept has been created for the Energy Park's design and integration into the local environment – a concept that interacts with the local master plan.
Lars Toghill, Vice President of Energy International at COWI, comments:
"Our analyses during the concept development and the first design process of the Megaton project have shown that the location and the supporting elements give the project the right conditions that we are looking for in competitive Power-to-X projects. It is primarily the dedicated portfolio of 4GW wind and solar projects that can ensure power at competitive prices and efficient use of the plant. In addition, there are the obvious advantages of the location of the Stovstrup substation and the fact that we have a project area available that allows for a well-thought-out integration into the landscape."
In connection with the establishment of the Energy Park, all surplus soil will be used to build a hilly terrain landscape around the Energy Park to establish an organic curved "P2X atoll", a hilly island landscape that shields from views to the Energy Park from the surrounding landscape in the otherwise completely flat landscape area with fields and forest.
Megaton Energy Park: Administration building and experience center integrated into surrounding hilly landscape
The surrounding hill landscape is planted with spruce, pine, grass, and wildflowers to support and develop biodiversity and also establish a beautiful landscape carpet that surrounds the plant.
The concept directly supports the existing vision and master plan for Skjern and Tarm by establishing nature trails, mountain bike routes and nature playgrounds including a lookout tower, from which a view of the entire Energy Park area and the surrounding energy production, which is an integral part of the Energy Park, is established. This creates a green and inviting total experience.
Offshore wind is a prerequisite for the right electricity production mix
The Energy Park has been combined and optimized from the start to ensure the best use of the renewables resources and thus to use the electrolysis as efficiently as possible, so offshore wind plays an important role in the wind farm's overall energy mix.
Victor Hoffmann-Brogaard, Head of Green Transition at New Power Partners, explains:
"The project has the right conditions to be realized, especially given the opportunity to develop offshore wind under the open-door scheme. The wind resources in the area ensure an optimal production profile for a project of this scale, which makes it competitive. We look forward to a constructive dialogue with authorities and local people in the near future about the further development of this exciting project, which is an international milestone in the green transition."
Megaton Factory I: View from Vejlevej. Only flare and distillation columns visible
Cooperation, integration and respect are the basis for the realization of Megaton
The size of the Megaton Energy Park means that from the start there has been extra focus on rethinking how to collaborate locally and optimize and get value creation realized with respect for the area.
Jacob Hänel Christensen, Business Development Director at GreenGo Energy concludes: "We are honored and humbled by the trust placed in us by the city council in Ringkøbing-Skjern, the local landowners and the neighbors of the Megaton Energy Park in connection with such a large project. It is a goal of the project to create as much cohesion and integration with local infrastructure and as many recreational areas as possible and to develop new opportunities for agriculture and industry locally for long-term benefit and value creation for the citizens and Ringkøbing-Skjern municipality. The consideration for nature and the master plan for Skjern and Tarm have thus been considered from the start. We look forward to the cooperation in the coming years. "
About GreenGo Energy
GreenGo Energy was founded in 2011 with the vision to accelerate conversion to renewable energy generation, by an innovative and scalable business model. GreenGo Energy’s 360 full services platform includes origination, investment structuring, development, offtake, engineering, procurement, construction management, O&M and asset management services, fully tailored and bespoke to our client’s needs and investment profile.
GreenGo Energy now has 14 GW of solar, wind and P2X projects in various stages of development and construction in selected U.S. states and Northern Europe, of which 3.9GW has been contracted through partnership agreements with tier 1 investors in the renewable space.