The developer of solar and wind farms, European Energy, can now also call itself an e-methanol producer. Yesterday, the company signed an agreement to acquire co-ownership of the Danish Power-to-X startup Reintegrate. This will give European Energy a say in the development and construction of e-methanol plants in Denmark. Production is expected to begin in 2022, and more plants will follow in the coming years both in Denmark and the rest of Europe.
Power-to-X is no longer distant science fiction: on Tuesday, Circle K announced its intention to take off 50 million liters of liquid electricity from REintegrate, and yesterday European Energy signed an ownership agreement with Reintegrate. This move will ensure the flow of green electricity directly into future production of liquid electricity or e-methanol. As such, Denmark now gets its first total Power-to-X production: made from locally sourced Danish green electricity, produced by a Danish company and sold to the Danish market.
REintegrate has already established itself as the first Danish company on a commercial basis that can produce green fuel using green electricity and CO2 from Danish biogas plants. CEO Lars Udby looks forward to the collaboration with European Energy:
- The investment enables us to realize our ambition to produce e-methanol on a large scale and thereby contribute to Denmark getting started on the green transition of the transport sector and chemical industry. It also gives us the opportunity to get our company closely connected to a central, European player in the green transition, says Lars Udby.
According to Knud Erik Andersen, CEO of European Energy, the agreement between European Energy and REintegrate will pave the way for more Power-to-X plants around Denmark, but also outside Denmark's borders:
- Our involvement in REintegrate will not only make it possible to ensure the roll out of more Power-to-X plants around Denmark, but also export the technology to all our solar parks and wind farms throughout Europe, says Knud Erik Andersen, who points out, that the investment is the company's first - but not the last - financial contribution to the vision of connecting sectors to the green transition shared by not only the Danish government and energy sector but also the European Commission among others.
The Power-to-X of the future is subsidy-free
The development of green fuels is still at an early stage, and the first small steps in the development of a real Power-to-X industry requires close cooperation with all actors - including the state - in order to accelerate its development. However, all three REintegrate, European Energy and Circle K consider it to be realistic to get the prices of e-methanol so far down that in the long run no subsidies will be required.
- If we place our Power-to-X plants appropriately, we can supply green power to the Power-to-X systems with minimal use of the grid. This should make it possible to ensure cheap green power that enables competitive Power-to-X products, says Knud Erik Andersen.
European Energy has previously announced possible site locations for Power-to-X projects in Denmark including the former coal power plant site at Stigsnæs as well as Kalundborg and Kassø by Aabenraa where the company is actively developing major solar and wind farms.
European Energy becomes a minority owner of REintegrate and joins the management at the same time.
Contact
Head of Communications and Regulatory Affairs
Thomas Beck Sørensen.
E: tbs@europeanenergy.dk
T: +45 25 57 21 73.
