Message from the Chair and CEO

Dear stakeholders,

In our industry, 2025 was a positive year for the general competitiveness and deployment of renewable energy internationally, but also a challenging one for renewable energy producers and developers.

Worldwide, construction of renewable energy parks hit an all-time high, surpassing other energy investments. Solar PV led this growth, with more than 700 GW of new capacity installed, making it the most cost-competitive energy source globally.

Demand must match the increased green energy supply  

However, rapid renewable energy deployment brings its own challenge: demand must keep pace with supply on an hourly basis. In many markets, grid capacity and consumption patterns do not align with generation. This imbalance caused price volatility and curtailment, as negative prices forced energy parks offline.

The most effective mitigation is integrating Battery Energy Storage Systems (BESS) at both park and system levels. With high-capacity storage costs falling by 40% during the year, adoption accelerated. This global context shaped our own performance. Improved competitiveness drove record investment, yet curtailment reduced earnings from both project sales and power generation.

Revenue amounted to EUR 766m, an increase from EUR 416m in 2024, reflecting a materially elevated activity level Gross profit likewise increased, rising from EUR 224m in 2024 to EUR 258m in 2025. EBITDA totalled EUR 170m, exceeding the 2024 result of EUR 155m and within the revised guidance range of EUR 200m ±15%, though below the original guidance of EUR 200–300m. Pre‑tax earnings improved year‑on‑year, reaching EUR 39m in 2025 compared with EUR 29m in 2024.

Project sales totalled EUR 620m, significantly higher than. Our IPP portfolio grew, but curtailed production limited power sales to EUR 138m, only marginally above last year.

“Battery storage will be central to future system flexibility and represents one of the most consequential strategic shifts for our company in recent years.”

Battery storage to unlock value

To address curtailment and protect margins, we launched a fast-track programme to roll out Battery Energy Storage Systems (BESS) in mid-2025. This includes retrofitting existing assets and integrating storage into all new projects. Seven months later, our first large-scale hybrid solar and BESS park was grid-connected, in Denmark.

BESS now offers a viable alternative to curtailment, enabling energy to be stored and released when demand and grid capacity allow. This will improve realised prices, reduce grid stress, and enhance project value. We expect the first financial impact in the second half of 2026. This year, our BESS pipeline more than tripled from 2.4 GW in 2024 to 7.4 GW in 2025.

A breakthrough year for Power-to-X 

2025 also marked the inauguration of Kassø, the world’s largest commercial e-methanol facility. During the year, we achieved first production and delivered the first shipments to customers. Kassø represents a breakthrough in scaling renewable fuels and positions European Energy at the forefront of both innovation and industrial production.

The renewable fuel received ISCC EU and ISCC PLUS certification, confirming at least a 70% reduction in greenhouse gas emissions compared to fossil-based methanol.

We continue to advance the underlying technologies. Our collaboration with SYPOX on electrified Steam Methane Reforming (e-SMR) completed successful pilot testing in 2025, marking an important step towards lowering production costs and improving scalability.

Furthermore, in Måde, Denmark, we strengthened our hydrogen platform by upgrading production capacity and onboarding new customers, reinforcing our position across the green hydrogen value chain.

Beyond technological progress, the price of renewable electricity remains critical to green fuels competitiveness. Expanding our battery storage capacity helps address this challenge. By storing renewable electricity that would otherwise be curtailed and using it later for e-methanol production, we can lower costs and reduce the need to buy power on the market.

We will continue investing across the broader renewable energy ecosystem to capture these synergies and strengthen our position in integrated green energy production.

A strengthened organisational backbone equips us to scale 

Despite financial headwinds, operational delivery remained strong. In total, we grid-connected 662 MW across 14 projects in five countries, and together with our managed assets, we produced 4.5 TWh of renewable electricity, enough to power 1.2 million European households annually and avoided over 1 million tonnes of CO₂e GHG emissions.

Our pipeline advanced significantly. At the end of 2025, 6 GW of projects were under structuring, 58% higher than in 2024. 1.2 GW reached final investment decision; and 1.3 GW is now under construction.

We also strengthened our organisational backbone through leadership development, governance, financial management, and digital systems to support future growth.

All of European Energy’s economic activities are Taxonomy-eligible and meet the technical screening criteria for substantial contribution to climate change mitigation, as well as the Minimum Safeguards. In 2025, we made measurable progress in aligning our revenue with the Do No Significant Harm criteria. For the first time, we have assessed and documented the alignment of our revenue, resulting in 81% Taxonomy-aligned revenue.

Entering 2026 with real momentum and improved market conditions 

As we turn the page to 2026, our priorities are clear. We will maintain disciplined execution, improve cost efficiency, and continue converting our pipeline into commercial outcomes. With the combination of our international capabilities in renewable electricity generation, world-leading Power-to-X capabilities, and an accelerating deployment of battery storage, we enter the new year with real momentum.

For 2026, we expect an improvement in our financial results and anticipate EBITDA in the range of EUR 200– 300m. While uncertainties remain in our sector, we also see encouraging signs of improving market conditions for renewable energy.

Thank you for your trust, your collaboration, and your belief in our mission. Together, we are building the renewable energy systems on which future generations depend.

Knud Erik Andersen
CEO and co-founder

Jens Due Olsen
Chair