European Energy of Denmark has placed an order for a 50 MW electrolyzer plant with Siemens Energy to be powered by its 300 MW Kassø Solar Park, and for the green hydrogen thus generated to be used to produce cost-effective e-Methanol.
European Energy secured clearance for the 300 MW solar farm in December 2021, touting it to be the largest solar project in the country back then (see 'Largest' Solar Farm With 300 MW In Northern Europe).
This e-Methanol will be used by the global shipping company Maersk and fuel retailer Circle K, among others. For Maersk, the project secured the e-Methanol supply for its 1st e-Methanol driven container vessel as it works towards decarbonization of its shipping fleet.
The electrolyzer plant will be designed, supplied and commissioned by Siemens Energy in Kassø, west of Aabenraa where European Energy is developing the 300 MW PV facility. As per the schedule, the duo aim for H2/2023 to start commercial production of methanol on site.
European Energy said it will build the project as EPC partner and will also own and operate the same.
e-Methanol as green transportation fuel
"Together with our partner European Energy we are taking over a first mover's role in decarbonizing the marine industry. With this project we will bring e-Methanol to market at scale," said Senior Vice President of Siemens Energy's New Energy Business, Stefano Innocenzi. "E-Methanol or derived e-Fuels are predestined for long-distance ship and road transportation as well as for aviation.
Shipping is one of the largest energy consuming industries, accounting for around 3,050 TWh of the global final energy consumption, nearly all of which comes from bunker oil, explain the duo. Sustainable fuels are then necessary for the industry to decarbonize itself as the world goes in for energy transition.
Methanol is a chemical in the form of a colorless, flammable liquid that is water soluble. Mostly natural gas or coal is used to produce it. Among others, it is used as an energy resource for the transportation industry including ships, fuel cars, trucks and the like. When it is produced using green hydrogen, it emits less GHG and is then termed e-Methanol.
According to a recent research report by The Brainy Insights, global methanol market is likely to grow to $66.06 billion by 2030, driven mainly for its increasing use as a marine fuel.
"The marine segment is estimated to grow at the highest CAGR of 6.07% over the forecast period. The segment growth is attributed because methanol is used as a substitute for traditional fuel in the marine industry as it limits the nitrogen oxides, sulfur oxides and other harmful air pollutant emissions in the atmosphere," states The Brainy Insights.
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