High activity level at European Energy in H1 2024

Production of renewable electricity at European Energy reached an all-time high in the first half of 2024.

European Energy made significant progress in the first half of 2024 across several key parameters with 28 projects under construction across eight countries and nine PPA’s signed.

The increase in construction activity and Power Purchase Agreements (PPA’s) are both indications of increased demand for renewable energy delivered at stable prices.

Several European countries have also started to introduce Contracts for Difference (CFD) support regimes for new renewable energy projects. Italy, Romania, and Estonia are among the latest countries to support the installation of new renewable capacity with long-term price regimes. European Energy looks forward to the implementation of these measures and their impact on the market.

“It is very positive that the demand for fixed long-term contracts on renewable electricity keeps increasing, as the contracted capacity has more than tripled from 2020 to 2023,” said Knud Erik Andersen, CEO of European Energy.

Advancements in Power-to-X and Battery Storage

European Energy’s efforts in Power-to-X have also begun to materialise, with the test production of the first green hydrogen at its Måde facility in June 2024. This marks a key step towards the commercial operation of European Energy’s Power-to-X projects. The Måde and Kassø projects are expected to enter commercial operation by the end of 2024. With Kassø Power-to-X facility becoming operational, it will be the first time that e-methanol is produced for a commercial purpose.

Additionally, European Energy has approved its first battery storage project, slated for operation in early 2025. This initiative aims to enhance energy storage capabilities, ensuring a steady supply of green power to the grid and optimising revenue by storing and selling power when market prices are favourable.

Robust pipeline

European Energy continues to advance a robust construction pipeline totalling 1.2 GW. During the past 12 months, the company commissioned 600 MW of new projects and added another 700 MW to its pipeline, ensuring diversified investments across multiple countries and technologies.

Electricity production reached a historic high in H1 2024, with a 24% increase from the previous year, totalling 1,020 GWh of renewable energy produced. This contributed to a reduction of 237,252 tonnes of CO2e greenhouse gas emissions.

Financial performance and market conditions

The investment environment for renewable energy projects has changed over the past year as projects have become larger and more complex, which has lengthened the divestment processes. The expected interest rate cut in the first half of 2024 did not materialise, further postponing investor willingness to commit to long-term assets such as renewable energy parks.

“Despite the challenges faced in the first half of the year, our continued focus on innovation, sustainability, and strategic growth ensures that we are well-positioned to capitalise on the increasing demand for renewable energy solutions,” said Jens Due Olsen, Chair of the Board of Directors at European Energy.

For H1 2024, EBITDA was EUR -2.4m, a decrease from EUR 49.1m in H1 2023. Profit before tax was EUR -49.6m in H1 2024, compared to EUR 22.3m in H1 2023.

Although it has been a financially moderate start to 2024, our activities within PPAs signed, high construction activities, deployment of battery storage and the near-term completion of our Power-to-X activities have generated additional economic value to the company.

With 1.7 GW of projects in active sales processes, we maintain our 2024 financial outlook of an EBITDA of EUR 230m but with an increased risk margin of +/- 20% up from +/- 10%. Profit before tax is also expected to continue to grow, though at a lower rate than EBITDA, with the majority of this year’s earnings expected to occur in the fourth quarter.

Read the report here.

Contact

Ming Ou Lü

PR Manager

miol@europeanenergy.com

+45 3126 9376