European Energy continued to strengthen its position in the renewable energy sector during the first quarter of 2026, advancing a number of large-scale hybrid energy projects across its core markets while further expanding its Power-to-X operations. Although the company’s financial performance was lower than the corresponding period last year, primarily due to the timing of project sales, it achieved significant progress across both its renewable energy and e-methanol portfolios.
For the quarter, European Energy reported revenue of EUR 80.3 million and EBITDA of EUR 5.3 million, while profit before tax amounted to EUR -21.5 million. The decline in earnings compared to the previous year was largely attributed to the absence of major project divestments during the quarter, as several planned transactions were deferred to later in the year.
Commenting on the results, Deputy CEO Jens-Peter Zink noted that earnings were impacted by the timing of project sales, seasonal market conditions, and ongoing geopolitical uncertainty. Despite these short-term challenges, he emphasized that the long-term market outlook for renewable energy remains strong, driven by increasing demand for energy independence, electrification, and more resilient energy infrastructure.
He also highlighted the growing interest among investors and energy markets in projects that integrate renewable power generation, battery storage, and grid connectivity into a single solution.During the quarter, European Energy continued expanding its Battery Energy Storage Systems (BESS) portfolio, which has become a central component of the company’s hybrid energy strategy. Battery storage projects were advanced across several countries, including Denmark, Lithuania, the United Kingdom, Australia, and Poland.
By the end of the first quarter, approximately 400 MW of battery storage projects, representing around 1,100 MWh of capacity, had reached Final Investment Decision (FID), demonstrating the company’s commitment to strengthening energy storage infrastructure alongside renewable generation assets.A major milestone was achieved in February with the inauguration of the Kvosted facility in Denmark.
The project is currently recognised as Northern Europe’s largest combined solar and battery energy park, featuring 50 MW of solar generation capacity and 200 MWh of battery storage. The facility represents another important step in European Energy’s transition toward integrated hybrid energy systems that can improve grid stability, increase flexibility, and optimize the use of renewable power.
The company’s growing focus on battery storage reflects a broader strategic transformation that has taken place over recent years. Originally known primarily as a solar and wind developer, European Energy has increasingly evolved into a hybrid energy company that combines solar power, wind energy, and battery storage technologies.
This integrated approach is designed to maximize grid utilization, enhance energy system flexibility, and support the growing demand for reliable renewable energy solutions. As part of this strategy, European Energy expects to install more than 1 GWh of battery storage capacity across European markets by 2027.Beyond Europe, the company also continued to advance major international hybrid energy developments.
During the quarter, progress was made on the 1.5 GW Upper Calliope project in Australia, one of the company’s flagship hybrid projects. The project combines large-scale solar generation with battery storage and reached an important stage with the securing of local agreements necessary for its development.European Energy also reported significant developments within its Power-to-X business.
The Kassø e-methanol facility successfully demonstrated full operational capability during the quarter and has now begun supplying e-methanol to customers under existing commercial agreements. The facility remains a landmark project for the European renewable fuels industry, as it is currently the only operational e-methanol plant in Europe producing methanol that fully complies with the European Union’s Renewable Fuels of Non-Biological Origin (RFNBO) regulations
.According to the company, the successful operation of Kassø demonstrates the growing commercial viability of renewable fuel production and reinforces the role that Power-to-X technologies can play in supporting the decarbonisation of hard-to-abate sectors such as shipping, aviation, and heavy industry.
Looking ahead, European Energy remains optimistic about market conditions and expects financial performance to improve during the second half of 2026. The anticipated completion of deferred project sales, combined with increasing contributions from operational renewable energy assets, is expected to strengthen earnings over the remainder of the year.
Reflecting this confidence, the company has maintained its full-year EBITDA guidance of between EUR 200 million and EUR 300 million.As governments and industries continue to prioritize energy security, electrification, and decarbonisation, European Energy believes demand for integrated renewable energy and hybrid infrastructure solutions will continue to grow.
The company’s ongoing investments in battery storage, large-scale renewable generation, and Power-to-X technologies position it to capitalize on these long-term market opportunities while supporting the transition to a more sustainable energy system.
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