European Energy Secures Grant for New Green Methanol Plant in Denmark
European Energy secures €55 million EU Innovation Fund grant for green methanol production in Denmark. European Energy has received financial support from the European Commission under the EU Innovation Fund to develop a green methanol production project in Denmark. The €55 million grant will enable the expansion of production capacity, creating a facility three times larger than the existing e-methanol plant in Kassø. The official signing of the agreement is expected in early 2025.
Large-scale green methanol production
The new facility is projected to achieve an annual production capacity exceeding 100,000 tonnes of green methanol. This initiative aims to reduce CO2 emissions by 150,000 tonnes annually. Construction is scheduled to commence in 2026, with full-scale production anticipated between 2028 and 2029.
European Energy’s plans in Poland
Earlier this year, European Energy signed agreements with two Polish municipalities, Barwice and Grzmiąca, to explore green fuel production opportunities in Poland. These initiatives include green e-methanol production and renewable energy-based heat generation, aligning with the company’s strategy to advance sustainable energy solutions across Europe.
– “We view Poland as a highly promising market for green synthetic fuels. Implementing these solutions in Poland is a critical step to maintain the competitiveness of the Polish economy in global markets. Danish green hydrogen and e-methanol projects illustrate how the EU values their role in Europe’s energy security,” said Olga Sypuła from European Energy Polska.
Benefits for local communities
European Energy representatives argue that investments in green fuel production could bring multiple benefits to Polish municipalities and local communities. These include increased tax revenues, job creation, enhanced competitiveness of local businesses, and contributions to combating climate change while improving energy independence. However, the proposed project requires extensive evaluation. Initial efforts will focus on environmental impact assessments and engaging in broad consultations with residents, neighboring communities, and key stakeholders.
Source: europeanenergy.com