EE North America (EENA), a subsidiary of Denmark-based European Energy, has signed a Letter of Intent (LOI) with Pennsylvania-based Montauk Renewables to purchase biogenically produced CO2 for the production of e-methanol which will be used as a marine fuel.
The strategic agreement will grant EENA the option to all biogenic CO2 from Montauk’s Texas facilities sufficient for large-scale production of e-methanol.
The initial delivery period is expected to begin in 2026 and last for 15 years upon final agreement, with the potential for extension thereafter.
European Energy is currently constructing a Power-to-X plant in Denmark (Kassø) which will be a first-of-its-kind facility supplying e-methanol to the global logistics company Maersk among others.
The company intends to use biogenic CO2 sourced from Montauk for e-methanol facilities in Texas which is currently being developed.
According to Montauk, the planned delivery would prevent a critical amount of biogenic CO2 from entering the atmosphere and put it to beneficial use, creating a new fixed-price commodity revenue stream for the company.
READ MORE World’s largest e-methanol facility gets €53 million boost World’s 1st large-scale e-methanol project to fuel Maersk’s boxships “The expected agreement between Montauk and EE North America will have a positive impact on the global reduction of CO2, a greenhouse gas that contributes to climate change, while continuing to expand and diversify our revenue sources, in this case with fixed-price commodity sales,” said Sean McClain , CEO of Montauk.
EE North America’s CEO, Lorena Ciciriello , stated: “By thinking creatively, building robust relationships, and strategically assembling the pieces for long-term growth, we are at the forefront of the clean energy transition. With genuine excitement and a shared vision, EE North America and Montauk are forging a powerful partnership, propelling us towards a brighter and more sustainable tomorrow. Our passion for driving the transition to cleaner energy fuels our dedication every step of the way.”
Jaime Casasus-Bribian , European Energy’s Head of Power-to-X Projects for the Americas & Iberia, added: “With a holistic approach to project development and strong strategic partnerships, we are leveraging the expertise from our blueprint e-methanol project in Denmark (Kassø), maximizing our first mover advantage in the U.S., together with our group company Ammongas that provides solutions for capturing and cleaning CO2. Our aim is to be a key player in the U.S. across e-fuels and hydrogen, driving innovation and forging a sustainable energy future.”
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