Mitsui launches commercial e-methanol production in Denmark

Mitsui & Co. and European Energy have commenced commercial operations at the Kassø e-methanol facility in Denmark. The plant, which has a maximum annual capacity of 42,000 metric tons, is believed to be the first of its kind to produce synthetic methanol at a commercial scale.

The fuel is produced by combining carbon dioxide with hydrogen derived from renewable energy, resulting in a nearly zero environmental impact. While originally intended for plastics and maritime fuels, the facility is seeing significant demand for automotive applications, which are expected to account for approximately one-third of total use.

Through their joint venture, Solar Park Kassø (SPK), Mitsui and European Energy have signed a multi-year offtake agreement with the Austrian energy company OMV. This follows previous agreements with other major entities, including A.P. Moller-Maersk, the LEGO Group, and Novo Nordisk. The demand is driven in part by EU environmental regulations, specifically the RED III directive, which mandates that at least 1% of energy in the transport sector must come from low-carbon synthetic fuels or hydrogen by 2030.