Siemens Energy Wins Contract to Design, Supply, and Commission Electrolysis System Comprising the Latest and Most Powerful Transformers, Rectifiers, and Electrolysis Products for the World’s First Large-Scale e-Methanol Project

Siemens Energy Secures Electrolyzer Order From European Energy. The End Users of e-Methanol Will Be the Shipping Company Maersk, Fuel Retailer Circle K, Among Others.

Siemens Energy has secured a contract from European Energy for the supply of an electrolyzer plant. The Danish multinational developer and operator of ecological energy projects is implementing the first commercial project for large-scale global e-Methanol production, with hydrogen supplied by a 50-megawatt (MW) electrolyzer plant from Siemens Energy.

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The plant will be built in Kassø, a region located west of Aabenraa in southern Denmark, near the border with Germany. Utilizing a 300 MW solar park near Kassø, developed by European Energy, the project will use low-cost renewable electricity necessary to produce e-Fuel at a competitive price. The end users of e-Methanol will be the shipping company Maersk, fuel retailer Circle K, among others.

The project guarantees the supply of e-Methanol for Maersk’s first eco-fuel powered container ship, thereby marking the starting point for large-scale CO2-neutral transport. The start of commercial methanol production is expected in the second half of 2023.

Siemens Energy, Together With European Energy, Takes the First Step Toward Decarbonization of the Maritime Sector

Siemens Energy will design, supply, and commission the electrolysis system, consisting of three complete sets from its latest and most powerful product line for PEM (Proton Exchange Membrane) electrolysis, including transformers, rectifiers, a distributed control system (DCS), as well as equipment to produce demineralized water. European Energy is the project owner and will be responsible for engineering, procurement, and construction, as well as operation of the facility.

Stefano Innocenzi, Senior Vice President of News Energy Business at Siemens Energy, stated: “Climate change requires immediate action. Together with our partner European Energy, we are taking the first step toward decarbonizing the maritime sector. With this project, we will bring large-scale e-Methanol to market. E-methanol or e-Fuels derived are intended for long-distance road and maritime transport as well as aviation. The project will be proof of the successful commercialization and scaling of our PEM technology.”

Knud Erik Andersen, CEO of European Energy, said: “We are pleased to place this important order in what we believe is the first commercial Power-to-X project of its kind in the world at scale. This is a crucial moment in the green transition as we advance with the decarbonization of hard-to-abate sectors, such as the maritime sector, and we trust that Siemens Energy’s excellent know-how regarding electrolyzers will translate into a solid foundation for expanding our business of supplying sustainable fuels to the world.”

The Shipping Sector Is Estimated to Emit About 1 Billion Tons of CO2 Per Year, About 13% of Global Transport Sector Greenhouse Gas Emissions

Global transport consumes about 3,050 terawatt-hours (TWh) of the world’s final energy consumption. For comparison, this is more than five times Germany’s total electricity consumption. And virtually all of it is based on fossil fuels, primarily fuel oil.

The shipping sector is estimated to emit about 1 billion tons of CO2 per year, about 13% of global transportation sector greenhouse gas emissions. The International Maritime Organization (IMO) has already secured the shipping sector’s commitment to halve greenhouse gas (GHG) emissions by 2050 (based on 2008 levels) to meet the goals of the Paris Agreement.

Measures include: new logistical approaches, greater efficiency, speed/power reductions, and – as the most effective path – the use of sustainable fuels, i.e., electricity-based fuels, largely carbon-neutral (e-Fuels), for propulsion.