Maersk's E-Methanol Supplier European Energy Kicks Off Production

European Energy has produced its first e-methanol batch at its Kassø plant in Denmark. Image Credit: European Energy

Danish renewable energy firm European Energy has started e-methanol production at its Kassø plant in Denmark, marking a significant milestone in green fuel development for shipping.

This breakthrough comes as a boost for container firm AP Moller-Maersk, as the company can now start receiving e-methanol from the facility under its existing offtake agreement to fuel its growing methanol-fuelled fleet.

The e-methanol was produced on the plant's first of two methanol lines, utilising locally sourced biogenic CO2 from the biogas facility in Tønder, European Energy said in a statement on its website on Thursday.

So far, more than 5 mt of raw e-methanol has been produced, Emil Vikjær-Andresen, executive vice president at European Energy said in his LinkedIn post.

Production at the facility will be fully ramped up in the second quarter of this year, with output expected to reach 42,000 mt/year. As part of the offtake agreement signed in 2021, European Energy will supply 10,000 mt of this e-methanol to Maersk.

E-methanol is produced by combining green hydrogen with captured biogenic CO2. The company began generating green hydrogen in January using electrolysers powered by solar energy.

"By combining green hydrogen with locally sourced biogenic CO₂, we've successfully demonstrated the functionality of our methanol loop - a key step in scaling up the production of e-methanol, Knud Erik Andersen, CEO of European Energy, said.

"The next step will be to refine the raw e-methanol through distillation so that it becomes pure e-methanol."