European Energy Partners With Mitsui To Obtain Bridge Financing For Kassø E-Methanol Plant

European Energy A/S and Mitsui & Co., Ltd. have secured a green-financing bridge facility for their joint venture developing the Solar Park Kassø (SPK) and an associated e-methanol production plant. The agreement will support continued operation of one of Europe’s most advanced Power-to-X projects, enabling further development of e-fuels for sectors where reducing emissions is particularly challenging.

The Kassø project integrates large-scale renewable electricity generation with e-methanol production, demonstrating how Power-to-X technologies can facilitate decarbonisation in industries where direct electrification is not technically or economically feasible. Construction of the facility began in 2023, and the first batch of e-methanol was delivered during the inauguration ceremony on 13 May 2025 to the container vessel Laura Mærsk, operated by the key offtaker A.P. Moller – Maersk. Additional offtake agreements are in place with major companies including the LEGO Group and Novo Nordisk.

The facility has been designed to produce up to 42,000 tonnes of e-methanol annually, depending on operating conditions. It draws renewable energy directly from the adjacent solar park, ensuring traceable and locally sourced electricity is used in the production process. The Kassø solar park, which began supplying electricity to the grid in 2023, remains one of the largest in Northern Europe.

Its direct connection to the Power-to-X facility forms part of European Energy’s broader strategy to expand e-fuel production capacity both in Denmark and internationally. Nordea and SMBC acted as Bookrunners and Mandated Lead Arrangers on the bridge financing package, with Nordea serving as Documentation Agent and Security & Facility Agent. The financing is supported by a partial guarantee from EIFO, reflecting continued engagement with the project.

Jens Peter Zink, Deputy CEO of European Energy, said that projects such as Kassø show how renewable energy can be integrated into industrial processes that require low-carbon fuels or raw materials for products like plastics. He noted that the financing agreement supports both the operation and the continued development of e-methanol production in Denmark, while promoting broader adoption of electrofuels among companies seeking to reduce emissions. He highlighted the importance of collaboration with Mitsui & Co., Ltd., and long-term offtakers such as A.P. Moller – Maersk, the LEGO Group, and Novo Nordisk in enabling this transition.

Peder Bach, Head of Large Corporates & Institutions Denmark at Nordea, described the Kassø e-methanol facility as breaking new ground and paving the way for decarbonisation in Europe. He emphasized Nordea’s commitment to supporting green financing initiatives and praised the constructive collaboration with European Energy and Mitsui & Co., Ltd.

Peter Boeskov, Chief Commercial Officer for Large Corporates at EIFO, added that the Kassø project exemplifies the type of initiatives EIFO seeks to support, highlighting its potential to showcase Danish innovation at scale and advance the commercialisation of Power-to-X solutions with global relevance. He noted that the combination of mature technology, strong ownership, and secured offtakers provides the right conditions for scaling e-methanol production and strengthening Europe’s energy resilience.