DGIF backs European Energy's Danish e-methanol project with EUR 53m

Danish renewables developer European Energy said today it has secured EUR 53 million (USD 51.7m) in financing from Danish Green Investment Fund (DGIF) for its e-methanol project in Kasso, southern Denmark.

The Power-to-X facility, touted as the largest one of its kind globally, will produce green hydrogen that will be mixed with carbon dioxide (CO2) sourced from bio-waste. The electrolysis process will be powered by electricity from a nearby 300-MW solar farm, the Kasso Solar Park, which will have an output equal to the power consumption of 75,000 Danish homes.

Apart from DGIF’s funding, European Energy has received debt financing from domestic lender Jyske Bank, it said without providing details.

“We see great potential in the facility, which is a step towards scaling PtX technologies. The entire value chain is conceived by, among other things, using CO2 when the e-methanol is to be refined – and this can help to meet the massive demand for electrofuels,” said Michael Zollner, managing partner at DGIF.

The 50-MW electrolysis plant for the scheme will be supplied by Siemens Energy AG, with commercial e-methanol production expected to commence in the second half of 2023. Fuel retailer Circle K and Danish shipping company AP Moller-Maersk A/S (CPH:MAERSK) will be off-takers of the e-methanol.

(EUR 1.0 = USD 0.976)

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