Siemens Energy wins contract to design, supply and commission the 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 European Energy electrolyser order. The end users of e-Methanol will be the shipping company Maersk, fuel retailer Circle K, among others.

Siemens Energy won a contract from European Energy for the supply of an electrolyser plant. The Danish multinational developer and operator of green energy projects is implementing the first commercial project for a world-wide large-scale e-Methanol production facility, with hydrogen supplied by a 50 megawatt (MW) electrolyser plant from Siemens Energy. 

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

The project secures the supply of e-Methanol for Maersk's first container ship powered by green fuel and thus marks the starting point for large-scale CO2-neutral transport. The start of commercial methanol production is scheduled for the second half of 2023.

Siemens Energy, together with European Energy, takes the first step towards decarbonizing the maritime sector

Siemens Energy will design, supply and commission the electrolysis system, comprising three complete sets of its latest and most powerful product line for PEM (proton exchange membrane) electrolysis, including transformers, rectifiers, distributed control system ( CDS), in addition to equipment to produce demineralized water. European Energy owns the project and will be responsible for the engineering, procurement and construction, as well as the operation of the facility.

Stefano Innocenzi, Senior Vice President, News Energy Business at Siemens Energy, said: “Climate change demands immediate action. Together with our partner European Energy, we are taking the first step towards decarbonising the maritime sector. With this project, we are going to take e-Methanol to the market on a large scale. E-methanol or derived e-Fuels are intended for long-distance road and maritime transport and also for aviation. The project will be a testament to the successful commercialization and scaling of our PEM technology.”

Knud Erik Andersen, CEO of European Energy, stated: “We are pleased to place this important order in what we believe is the world's first large-scale commercial Power-to-X project of its nature. This is a crucial moment in the green transition, as we move forward with the decarbonization of sectors that are difficult to reduce their environmental impact, such as the shipbuilding sector, and we trust that the excellent know-how Siemens Energy's commitment to electrolysers will translate into a solid foundation to expand our business of delivering sustainable fuels to the world."

It is estimated that the shipping sector emits around 1 billion tonnes of CO2 per year, around 13% of the greenhouse gas emissions of the global shipping sector.

Global transport consumes about 3.050 terawatt hours (TWh) of the world's final energy consumption. For comparison purposes, this is more than five times Germany's total electricity consumption. And practically almost everything is based on fossil fuels, mainly fuel oil.

It is estimated that the maritime transport sector emits around 1 billion tonnes of CO2 per year, about 13% of the greenhouse gas emissions of the global transport sector. The International Maritime Organization (IMO) has already obtained a commitment from the maritime transport sector to reduce greenhouse gas (GHG) emissions by half by 2050 (based on the 2008 level), to meet the targets of the Paris Agreement.

The measures are: new logistical approaches, greater efficiency, speed/power reductions and – as the most effective way – the use of sustainable fuels, i.e. electricity-based fuels, which are largely carbon neutral (e.g. -Fuels), for propulsion.