Company achieves world-first breakthrough that could redefine fuel production: 'This is a pivotal moment'

In March 2025, European Energy successfully commissioned the first methanol reactor at its Kassø Power-to-X facility, producing Denmark's first batch of e-methanol.

"We are thrilled to have produced the first e-methanol at our Kassø facility," said Emil Vikjær-Andresen, head of Power-to-X at European Energy. "This is a pivotal moment on the journey that started four years ago."

This achievement is a significant milestone in the development of sustainable fuels. Electric vehicles are extremely useful to consumers and are growing in popularity. However, industries like shipping and aviation have difficulty decarbonizing.

These sectors require high-energy fuels that batteries cannot easily replace, resulting in fossil fuel reliance. This reliance results in further global air pollution.

European Energy's solution to the problem? E-methanol — a carbon-neutral alternative fuel that mimics the energy content and usability of traditional fossil fuels.

The facility uses Power-to-X technology to create e-methanol. Electrolyzers powered by solar energy split water into hydrogen, which they then combine with biogenic CO₂ to create e-methanol.

E-methanol is a synthetic fuel that, when burned, releases the same CO₂ used to make it. Fossil fuel sources produce traditional methanol, while renewable energy sources create e-methanol.

While the concept isn't new, European Energy's implementation is groundbreaking since it's Denmark's first large-scale commercial production of e-methanol. The facility first began producing green hydrogen in January 2025, demonstrating a shift from pilot projects to industrial fuel production.

Global shipping giant Maersk plans to use e-methanol in its next generation of low-emission vessels. Rabab Raafat Boulos, chief operating officer at Maersk, stated: "Bio- and e-methanol continues to be the most promising alternative shipping fuels to scale up in this decade."

Not only will it produce large amounts of e-methanol for industrial use, but excess heat from production will provide district heating for up to 3,300 local households.

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This project wasn't just an innovative win. It's a huge step forward for sustainability. Facilities like this one reduce fossil fuel dependence while creating a carbon-neutral fuel. E-methanol burns cleaner and releases fewer particulates and harmful pollutants. 

The facility's production will now be ramped up, with plans to produce 42,000 tonnes (roughly 46,000 tons) of e-methanol. Meanwhile, consumers could see environmental benefits within the next year or two, particularly in global shipping routes.

"The lessons learned will enable us to refine the process, improve efficiencies, and bring down costs for future projects," Vikjær-Andresen said.

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