The Danish developer of renewable energy European Energy and Denmark’s largest inland port, Port of Aalborg, signed a letter of intent that secures European Energy an option for a 25-hectare area at the Eastern Port in Aalborg, which is planned to be the location for a new electrolysis plant with a capacity of 120 MW and an associated e-methanol plant.

The plant is set to be ready for use as early as 2025 and will produce 75,000 metric tons of e-methanol per year.

The so-called e-fuels such as e-methanol will play a crucial role in the green transition with major players such as Maersk and Circle K already in the process of building a solid demand in the market. Therefore, it is crucial that we build up a large production capacity, which is why we have worked for a period of time with various projects to be able to establish a plant in Aalborg, which has a unique value chain within Power-to-X. We greatly appreciate a very constructive dialogue with Port of Aalborg, which has been decisive for us now being ready to enter the next phase.

—Emil Vikjær-Andresen, Head of Power-to-X at European Energy

In recent years, we are investing heavily in creating an optimal framework for innovative environments and clusters that bring Aalborg into the world elite within the technologies of the future. With a new, large Power-to-X facility, Aalborg will truly consolidate itself as a world-leading hub for modern and green energy technology, which will strengthen our ability to attract even more investments and players from both home and abroad.

—Lasse Frimand Jensen, Chairman of the Board, Port of Aalborg

The green power for the plant will primarily come from new renewable energy plants with European Energy currently having a significant pipeline of projects in Denmark towards 2025. Furthermore, European Energy also hopes to get permission to establish solar parks in the immediate area of the new Power-to-X plant.

With a goal of production already in 2025, it is crucial that work on the project starts this year. Next step will be the further technical planning of the project, which will form the basis for a regulatory handling.

Vikjær-Andresen says that with the newly established business consortium CCUS Fyrtårn Nordjylland, which consists of a number of public players and 27 companies, the parties will apply for support for the project. Earlier in March, a broad majority in the Danish Parliament reached an agreement to allocate DKK 1.25 billion (US$186 million) for investment in Power-to-X technology.

China-based Geely has begun test runs of green e-methanol vehicles—two sedans and a heavy-duty truck—in Aalborg.