Danish energy company Ørsted has announced the cancellation of FlagshipONE, its first commercial-scale Power-to-X project, in favor of prioritizing renewable hydrogen development. The decision, revealed in the firm's H1 2024 interim report, was driven by the sluggish growth of Europe's e-fuel market. Ørsted's CEO, Mads Nipper, explained that the liquid e-fuel market in Europe was developing slower than anticipated, leading to the strategic shift. The company is focusing on renewable hydrogen as a key element in decarbonizing essential European industries. The cancellation of FlagshipONE incurred an impairment charge of DKR3.2 billion, prompting Ørsted to reiterate its commitment to de-risking project execution and pursuing high-value options. FlagshipONE, located in Sweden, was designed to produce e-methanol but faced challenges such as high production costs, regulatory risks, and lack of commercial viability. Additionally, a Woodmac report highlighted the issues hindering e-fuel market growth, including high costs associated with green hydrogen production, CO2 capture, and the energy-intensive conversion process to e-fuel.