e-SMR: Bio-methanol

Next Generation Green Methanol by European Energy

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Drone picture of Kassø E-methanol Facility and solar park

In 2025, we started the production of our e-methanol production at Kassø e-Methanol Facility in Denmark. Now, we are launching the solution to scale up green methanol production, making it price competitive and attractive as an alternative fuel for e.g. the shipping industry. Together with SYPOX, we are launching e-SMR as a way to produce bio-methanol.

Scaling up on green methanol production

Why do we need a new generation of green methanol?

With the new generation, we will be able to deliver green methanol at costs significantly lower than conventional e-methanol. It will be close to parity with fossil-derived methanol when carbon pricing is included. At the same time, lifecycle emissions can be reduced by 70–120% compared to fossil methanol, with negative carbon intensity scores achievable when manure-based biogas is used.

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Reducing electricity demand for markets with high energy prices

Methanol differentiation across markets

The new technology to produce green methanol is introduced as an addition to our existing green fuel portfolio. e-SMR integrates biogas into the Power-to-X process, reducing electricity demand and lowering or eliminating the need for an external biogenic CO₂ stream. This enables lower levelised costs in regions with high power prices but ample biomass.

e-SMR-derived methanol qualifies under RED III Annex IX as an advanced biofuel when based on residues such as manure or straw. It can also meet the criteria for RFNBO fuels, when the electricity input is renewable.

Are you looking for green fuels? Visit our methanol sales page

Lower costs

e-SMR reduces methanol production costs by 20–40%, enabling more cost competitive green methanol production.

Low or negative carbon intensity

Lifecycle carbon intensity can fall to 7-30 gCO₂eq/MJ — and even reach negative values (-100 gCO₂eq/MJ) when using manure-based biogas.

RED III & RFNBO

Qualifies under RED III (Renewable Energy Directive) as an advanced biofuel. It can also meet the criteria for RFNBO fuels when the electricity input is renewable, creating a hybrid compliance pathway that strengthens its market value.