European Energy has been awarded a grant by the European Commission for a power-to-X project in Denmark.
The grant for the green methanol project is for more than €50m and was awarded under the EU Innovation Fund.
The support will help finance the construction of the scheme.
Construction of the project is expected to begin in 2026, with the facility becoming operational by 2028/29.
The plant builds on the unique knowledge European Energy has generated with its first green methanol facility in Kassø, Denmark (pictured), which is being commissioned with a production capacity of approximately 32,000 tonnes of green methanol annually.
The new project will produce over 100,000 tonnes of green methanol annually.
The final grant is subject to negotiations will be signed off in early 2025.
Executive vice president and head of power-to-X at European Energy Emil Vikjær-Andresen said: “With this project, we take the development of large-scale green methanol facilities to the next stage.
“Our firm target is to increase size and reduce cost while improving efficiency as this is required to drive down the cost of the green transition.
“We thank EU’s Innovation Fund for supporting us in this challenge and look forward to bringing the project into construction and operation.”