Kassø E-Methanol: From Plans to Production

Green methanol has moved rapidly from concept to a substantial global project pipeline. As of March 2026, the Methanol Institute and GENA Solutions were tracking 263 renewable methanol projects, representing 48.5 million tonnes of announced annual capacity by 2031—including 23.8 million tonnes of e-methanol. However, announced capacity is not the same as actual production: many projects remain in planning, engineering or construction. Under the strict definition of e-methanol—methanol synthesized from renewable hydrogen and captured CO₂—Kassø remains the clearest publicly documented large-scale commercial facility in operation.

From Renewable Power to E-Methanol

Officially inaugurated in May 2025, the Kassø E-Methanol Facility in Denmark has a design capacity of up to 42,000 tonnes per year. Three Siemens Energy electrolysers, with a combined capacity of 52.5 MW, produce green hydrogen on site using electricity mainly from the adjacent 304 MW Kassø Solar Park.

The carbon feedstock is biogenic CO₂ captured from agricultural-waste-based biogas at Tønder Biogas. It is purified and liquefied by Ammongas before being transported to Kassø.

The facility was developed by European Energy and is jointly owned by European Energy and Mitsui & Co. European Energy designed and constructed the methanol synthesis loop, while Siemens Energy supplied the electrolysis system. KAPSOM contributed to this landmark project by supplying the core reactor unit, where green hydrogen and biogenic CO₂ are converted into methanol.

Commercial Demand Across Industries

Kassø’s offtakers demonstrate that e-methanol can serve multiple markets. A.P. Moller–Maersk uses it as marine fuel, while the LEGO Group and Novo Nordisk use it to replace fossil-based methanol in selected plastics applications. In August 2026, OMV also signed a multi-year offtake agreement for transport-fuel applications.

Kassø shows that commercial e-methanol requires more than renewable electricity. It depends on reliable hydrogen production, a qualified CO₂ supply, an integrated synthesis loop and long-term demand.

KAPSOM believes green methanol and green ammonia will both play important roles in the future Power-to-X economy. Building on our experience supplying critical reactor equipment for Kassø, we look forward to contributing to more green methanol projects worldwide.