European Energy and Mitsui Secure Green Bridge Financing for E-Methanol Plant in Denmark

European Energy A/S and Mitsui & Co., Ltd. have concluded a green bridge financing agreement with Nordea and Sumitomo Mitsui Banking Corporation (SMBC) for their joint venture Solar Park Kassø (SPK). This facility benefits from a partial guarantee from the Export and Investment Fund of Denmark (EIFO). The financing aims to optimize short-term liquidity while enabling the partners to pursue the structuring of long-term project financing.

A Pioneering Facility Operational Since 2025

The Kassø plant produced its first e-methanol in May 2025, according to data released by the partners. The first delivery was made during the inauguration ceremony on 13 May 2025, to the container vessel Laura Mærsk, operated by A.P. Moller-Maersk. The facility would have a production capacity of up to 42,000 tonnes of e-methanol per year, depending on operating conditions. Construction of the site began in 2023.

The project combines large-scale renewable electricity generation with e-methanol production, illustrating the application of Power-to-X technologies for hard-to-decarbonize sectors. The plant sources renewable energy from the adjacent solar park, which has been supplying electricity to the grid since 2023. This park is among the largest of its kind in Northern Europe, according to European Energy.

Offtake Agreements with Industrial Groups

In addition to A.P. Moller-Maersk, offtake agreements have been concluded with the LEGO Group and Novo Nordisk. These commercial partnerships support the project’s economic viability by securing outlets for e-methanol production. The fuel produced targets the maritime sector in particular, where direct electrification remains technically challenging.

Nordea and SMBC acted as Bookrunners and Mandated Lead Arrangers on this transaction. Nordea also serves as Documentation Agent and Security Agent. Jens Peter Zink, Deputy CEO of European Energy, states that the collaboration with Mitsui & Co., Ltd. and long-term customers forms a foundation for the development of the electrofuels sector.

Institutional Support for the Power-to-X Sector

Peter Boeskov, CCO Large Corporates at EIFO, indicates that the institution’s continued engagement reflects the project’s ability to demonstrate Danish innovation at scale. EIFO considers that the project meets the necessary conditions to contribute to the commercialization of Power-to-X solutions. The Kassø facility is part of European Energy’s strategy to expand its electrofuel production capacity in Denmark and internationally.

The growth of this sector will depend on stakeholders’ ability to secure long-term financing and maintain offtake agreements with industrial players committed to reducing their emissions.