European Energy will buy biogenic CO2 to produce e-methanol in US

A subsidiary of European Energy will buy biogenic carbon dioxide (CO2) from Montauk Renewables for e-methanol production in Texas, US.

PHOTO: European Energy's solar park in Kasso, Denmark. European Energy

Denmark–based European Energy will source biogenic CO2 over the next 15 years through its US-based subsidiary EE North America to produce e-methanol.

“The e-methanol would then be used to fuel vessels for maritime shipping operations,” said Houston-based renewable energy company Montauk Renewables.

E-methanol, or synthetic methanol, is produced using 100% biogenic CO2 and green hydrogen. The biogenic CO2 is typically captured through either bioenergy with carbon capture and storage (BECCS) or through direct air capture (DAC). E-methanol produced by this method is virtually free of greenhouse gases and can cut a vessel's CO2 emissions by 95% compared to conventional marine fuels on a well-to-wake basis.

In this case, biogenic CO2 will be captured from Montauk Renewables' renewable natural gas processing plants in Texas, US. The delivery will commence in 2026 and last for 15 years, Montauk Renewables said.

Rising maritime demand

European Energy is also building a large-scale commercial e-methanol plant in Denmark, which will produce 42,000 mt/year of e-methanol from 2024.

The company has signed two separate agreements with Danish and Korean shipping giants A.P. Moller – Maersk and Hyundai Merchant Marine (HMM) for e-methanol offtake from its Danish facility starting from 2024 and 2026, respectively. Maersk's order book has 25 methanol dual-fuel vessels, while HMM has ordered nine.

Moreover, Japan's Mitsui & Co, the parent company of shipping giant Mitsui O.S.K. Lines (MOL), has also acquired a large stake in the Danish facility. As of now, MOL has 23 methanol dual-fuel tankers in its order book.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online