- Denmark opened Europe’s largest green methanol plant, Kasso, producing 42,000 tonnes of e-methanol annually.
- The plant, co-owned by European Energy and Mitsui, uses solar-powered electrolysis and biogenic CO₂, positioning Denmark as a key player in green fuel.
On Tuesday, May 13, Denmark inaugurated Europe’s largest green methanol plant, marking a significant step in the continent’s efforts to cut carbon emissions. Major companies, including shipping giant Maersk, toymaker Lego, and pharmaceutical firm Novo Nordisk, will use the plant’s output to support their green transition.
Located in the Danish countryside beside northern Europe’s largest solar panel field and a major transformer station, the facility will produce e-methanol. This synthetic fuel is made using renewable energy and captured carbon dioxide.
European Energy, a Danish firm, co-owns the Kasso plant with the Japanese company Mitsui. Kasso is only the third operational e-methanol plant in the world, following sites in China and the United States. “Our strategy is to scale up. The next plant will be three times bigger,” said Jaime Casasus-Bribian, Head of Projects at European Energy.
The Kasso facility will produce up to 42,000 tonnes of e-methanol annually, equivalent to 50 million litres. Maersk will use the fuel to power its vessels, while Lego and Novo Nordisk will use it as raw material for plastic bricks and insulin injection pens.
Although significant for Europe, the plant remains modest on a global scale. Maersk estimates it will need two million tonnes of green methanol annually by 2030 to reduce its fleet’s carbon footprint by just 10 per cent.
Maersk’s Laura Maersk, the company’s first container ship to run on e-methanol, will refuel at the nearby Aabenraa port every quarter, enough for one month of sailing. “This is an encouraging initiative for the sector’s potential development,” said Yann Lesestre, author of an international e-fuels report. However, he noted the plant’s limited scale and highlighted the need to test the technology in commercial use.
The project received €53 million in funding from a Danish green investment fund. Lesestre’s report estimates that Europe accounts for 19 per cent of planned global e-methanol capacity, while China leads with 60 per cent. China’s Jiangsu Sailboat plant, operational since 2023, produces 100,000 tonnes yearly.
Denmark, a pioneer in renewable energy, particularly wind power, completed the Kasso plant in less than two years after securing the construction permit.
“This is an essential stepping stone in scaling up production capacity,” said Camilla Holbech, Head of Renewable Energies, Green Transition, and International Cooperation at Green Power Denmark. She stressed the importance of green fuels for decarbonising sectors like shipping, which cannot easily switch to electricity.
Holbech attributed the prevalence of smaller projects to the high-cost gap between green and fossil fuels. A report by Green Power Denmark predicts that green methanol could match fossil fuel prices by 2040, provided the sector attracts major investment.
Unlike plants in the US and China that rely on recycled carbon, the Danish site uses biogenic carbon derived from natural sources such as trees, plants, and biomass. The production process combines this biogenic CO₂ with green hydrogen created through electrolysis powered by solar energy.