Danish energy giant Ørsted has abandoned its investment in Flagship One, a planned e-methanol facility in Örnsköldsvik, a town 245 kms south of Skellefteå, that was set to become Europe's largest. 

The project, which had attracted a significant investment of over 1.3 billion kronor from Bill Gates's Breakthrough Energy, was expected to produce 50,000 tons of fossil-free fuel annually, reducing emissions by 100,000 tons per year.

Ørsted cited slower-than-expected market development for e-methanol in Europe as the reason for pulling out. The company has recorded a write-down of 2.3 billion kronor in its first-half report.

The decision has dealt a significant blow to Övik Energi, the local energy company that was to supply the plant with residual heat.

– This was unexpected news, said Övik Energi CEO Roland Nordin.