European Energy and Mitsui secure green financing for Kassø e-methanol facility, advancing Power-to-X technology and industrial decarbonization.
European Energy A/S, in partnership with Mitsui & Co., Ltd., has successfully arranged a green-financing bridge facility to support their joint venture at the Kassø site, encompassing both the Solar Park Kassø (SPK) and the associated e-methanol production plant. This financing agreement underpins one of Europe’s most advanced Power-to-X initiatives, ensuring the continued development of sustainable e-fuels aimed at sectors where decarbonization remains particularly complex.
The Kassø project represents a cutting-edge integration of large-scale renewable electricity generation with e-methanol production, demonstrating how Power-to-X technologies can provide low-carbon solutions in industries where direct electrification is either technically challenging or economically unfeasible. Construction commenced in 2023, and the facility celebrated a milestone in May 2025 when its first batch of e-methanol was delivered to the container vessel Laura Mærsk, operated by the key offtaker A.P. Moller – Maersk. In addition, the facility has secured long-term offtake agreements with prominent global companies, including the LEGO Group and Novo Nordisk.
Designed to produce up to 42,000 tonnes of e-methanol annually, the Kassø plant leverages renewable electricity from the adjacent solar park, providing traceable and locally sourced energy directly to the production process. This model highlights the potential of combining solar power with synthetic fuel production to accelerate industrial decarbonization.
Financially, the green-bridge facility was structured with Nordea and SMBC serving as Bookrunners and Mandated Lead Arrangers, while Nordea also acted as Documentation Agent and Security & Facility Agent. The facility benefits from a partial guarantee provided by EIFO, which continues its active engagement with the project.
The solar park at Kassø, which began feeding electricity to the grid in 2023, remains one of the largest of its kind in Northern Europe. Its direct linkage to the Power-to-X facility reflects European Energy’s broader strategic vision to scale e-fuel production in Denmark and internationally.
Jens Peter Zink, Deputy CEO of European Energy, commented: "Projects like Kassø demonstrate how renewable energy can be seamlessly integrated into industrial processes that demand low-carbon fuels or raw materials. This financing agreement supports sustainable e-methanol production in Denmark and fosters the adoption of electrofuels across industries committed to reducing emissions. Collaborating with Mitsui & Co., Ltd. and long-term partners such as A.P. Moller – Maersk, the LEGO Group, and Novo Nordisk provides a strong foundation for this energy transition."
Peder Bach, Head of Large Corporates & Institutions Denmark at Nordea, added: "The Kassø facility is setting new standards for decarbonization in Europe. We are proud to support this project and remain committed to advancing green financing solutions for our clients."
Peter Boeskov, CCO Large Corporates at EIFO, noted: "Kassø exemplifies the type of large-scale, innovative projects EIFO aims to support. With established technology, strong ownership, and committed offtakers, the project enables scaling of e-methanol production and strengthens Europe’s energy resilience."
Through this collaboration, Kassø underscores the potential for Power-to-X technologies to contribute significantly to global decarbonization while showcasing Danish innovation at scale.
