Mitsui buys 49% of Danish e-methanol plant from European Energy A/S
(Reuters) - Japan's Mitsui has agreed to buy 49% of a Danish e-methanol plant and a connected solar plant from the privately-owned renewable energy firm European Energy A/S, the Danish firm said on Wednesday.
The e-methanol facility is the world's largest, Kenichi Hori, President and Chief Executive Officer, Mitsui & Co., Ltd, said in a statement.
"Mitsui will leverage its expertise in chemicals, renewable energy, shipping, and other industries to enhance the competitiveness of this e-methanol facility," he said.
The 304 megawatt (MW) solar PV plant is located in Kassoe in the Aabenraa municipality in Denmark, and the connected 52 MW e-methanol facility has production of up to 42,000 metric tons of e-methanol per year, European Energy said.
Shipping company Maersk, which has 19 vessels on order that can sail on methanol, last year agreed to purchase half of the plant's output, and the LEGO Group and Novo Nordisk have since signed up as offtakers from 2024.
The deal is expected to close in the third quarter of 2023.
Interest in methanol as an alternative fuel has grown in the shipping industry, which seeks to achieve net-zero emissions by 2050.
Mitsui is involved in establishing the world's first methanol bunkering pilot in Singapore this year, along with Maersk Oil Trading, Mitsui & Co Energy Trading Singapore, and American Bureau of Shipping.
Solar projects are this year expected for the first time to attract more investments than oil production, the International Energy Agency said in May.
European Energy develops solar, wind and sustainable fuel projects in 19 countries globally with the aim of eventually selling them.
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