Denmark Launches Europe's Largest Green Methanol Facility

In Denmark, Europe's most significant green methanol production facility, known as Kasso, has begun operations. Located near northern Europe’s largest solar farm and a major power transformer station, the plant will generate e-methanol—a synthetic fuel derived from renewable electricity and carbon dioxide.

Kasso is now one of only three e-methanol plants globally, alongside those in the United States and China, according to the French Bureau of E-Fuels. Developed by Danish firm European Energy in partnership with Japan’s Mitsui, the plant is a key step toward scaling up sustainable fuel technologies.

The plant is capable of producing up to 42,000 tonnes of e-methanol annually, equivalent to 50 million liters. This clean fuel will be used by companies such as Maersk for its cargo fleet, Lego for its plastics, and Novo Nordisk for its medical devices.

Despite its significance for Europe, the plant's output is modest in the global context. Maersk alone estimates it will need two million tonnes of green methanol per year by 2030 to cut its emissions by just 10%.

The port of Aabenraa, located nearby, will serve as a refueling station for Maersk’s e-methanol-powered vessel, the Laura Maersk, once every quarter.

Experts, including Yann Lesestre, author of a global e-fuel report, see the project as a promising but small-scale initiative that will help assess commercial-scale viability. It has received €53 million in funding from a Danish green investment program.

Globally, China leads the e-methanol industry, accounting for 60% of planned capacity, while Europe represents 19%. China’s Jiangsu Sailboat plant, operational since 2023, produces 100,000 tonnes annually.

Denmark, a leader in wind energy, has fast-tracked the Kasso project, completing it in under two years. According to Camilla Holbech of Green Power Denmark, e-fuels are essential for decarbonizing industries that can’t be electrified, such as maritime shipping.

While the current production costs are higher than fossil fuels, significant investments could make e-methanol competitive by 2040. Unlike the U.S. and Chinese plants that use recycled carbon, Denmark’s facility uses biogenic carbon sourced from biomass, combined with green hydrogen created through solar-powered electrolysis.