European Energy to add biomethanol to bunker fuel portfolio

Danish methanol producer European Energy will use a technology developed by Germany’s SYPOX to produce biomethanol, with output expected from 2026 onwards.

IMAGE: Methanol-capable dual-fuel containership, Laura Maersk, docked in Copenhagen, Denmark. X of @Maersk

Conventional steam methane reforming (SMR) uses natural gas both as a feedstock and as a heat source, producing direct CO2 emissions during combustion. In contrast, electric SMR (e-SMR) replaces natural gas combustion with electric heating, theoretically eliminating CO2 emissions from the heat supply stage.

European Energy will use renewable electricity to convert biogas or biomethane feedstock into synthesis gas (syngas) via SYPOX’s e-SMR technology. The syngas will then be processed into biomethanol using its own proprietary methanol synthesis process.

This production route will lower biomethanol costs and reduce the fuel’s carbon intensity, the company said.

European Energy already produces about 42,000 mt/year of e-methanol at its Kassø plant in Denmark, with A.P. Moller–Maersk as a key offtaker. It now plans to supply biomethanol to the shipping, aviation and chemical sectors.

It has not disclosed the new plant’s location or start date, but SYPOX’s e-SMR technology is set for commercialisation in 2026, production is likely to begin thereafter.

“With growing demand from shipping, chemicals, and sustainable aviation fuel production, e-SMR provides a practical next step for scaling green fuels to meet climate and compliance goals,” the company said.

By Konica Bhatt

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