New e-methanol project in Estonia targets bunker market

Singapore-based renewable energy startup Destiny Energy plans to build a 10,000 mt/year e-methanol plant in Estonia, chief executive Vijay Sirse told ENGINE.

IMAGE: Aerial view of Port of Tallinn in Estonia. Port of Tallinn

E-methanol is produced using 100% biogenic carbon dioxide (CO2) and green hydrogen. The biogenic CO2 is typically sourced from bioenergy with carbon capture and storage (BECCS) or through direct air capture (DAC).

For this project, Destiny Energy will source biogenic CO2 from two local biomethane producers, while green hydrogen will be produced on site.

“We have signed an MoU [memorandum of understanding] with an Estonian energy company to offtake the full volume of e-methanol. They will act as the bunker supplier to shipping companies,” Sirse said, without revealing the company's name.

The project is currently in the Front-End Engineering Design (FEED) stage, which will define the technical requirements and cost estimates before a final investment decision expected in 2026.

E-methanol production is expected to start by 2028, Sirse confirmed.

Destiny Energy is also pursuing three additional projects, including e-methanol and green ammonia in Egypt, Malaysia and India, which are in early-stage feasibility studies. Discussions with potential bunker suppliers for offtake agreements on these projects are set to begin later this year, Sirse added.

By Konica Bhatt

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