Siemens Energy has sealed a deal from Danish developer and green energy operator, European Energy, to deliver an electrolyzer plant for its world’s first high-volume e-methanol production facility project.

According to plan, the first ever large-scale e-Methanol production facility will be built in Kassø, located in the South of Denmark, near the German border. Siemens Energy tasked with providing the hydrogen from its 50 mega-watt electrolyzer plant.

The plant’s location is strategic as it will be established near European Energy’s 300 megawatts solar park of Kasso, providing easy access to low-cost renewable electricity required to power the e-fuel production plant.

The e-Methanol produced will be used by shipping firm Maersk and several fuel retailers, including Circle K. Maersk has launched its first e-Methanol container vessel and will be supplied with e-Methanol from the European Energy’s project, demarking the starting point into CO2-neutral shipping in large scale.

Commercial production of e-methanol is projected to start during the second phase of 2023.

“Siemens Energy will design, supply and commission the electrolysis system consisting of three full arrays of its latest and most powerful line of proton exchange membrane electrolysis products,” read a press release by Siemens Energy.

Project owner European Energy, will foot up the cost for engineering, construction, procurement and smooth running of the facility operations.

“Climate change requires urgent action. Together with our partner European Energy we are taking over a first mover’s role in decarbonizing the marine industry,” said New Energy Business at Siemens Energy Senior Vice President Stefano Innocenzi, adding that they are focused to availing e-Methanol to the market at scale.

According to European Energy CEO Knud Erik Andersen, the project is a crucial moment in the green transition as they strive to decarbonize hard-to-abate sectors such as the shipping industry.