European Energy has entered a strategic cooperation with German company SYPOX and will use their new technology, electric steam methane reforming (e-SMR), to reduce costs and accelerate green methanol production for the shipping and chemical sectors.

• European Energy adds bio-methanol made with e-SMR to its green fuel portfolio
• The production process will decrease production costs while lowering the carbon intensity of methanol
• The addition of e-SMR-based bio-methanol will broaden European Energy’s green methanol portfolio
• The e-SMR technology can also be deployed in conventional methanol production, reducing CO₂ emissions from natural-gas-based methanol
• First commercial 10-MW unit planned for 2026 following more than 80,000 hours of prototype testing

European Energy will begin integrating the next generation of bio-methanol into its portfolio of green fuels.

The bio-methanol will be produced through an innovative technology known as electrified steam methane reforming (e-SMR), where renewable electricity is used to process biogas or biomethane into synthesis gas, which is then converted into green methanol using European Energy’s proprietary methanol technology.

The e-SMR technology is not a replacement but a complementary addition to European Energy’s green fuel offering. By advancing green hydrogen, e-methanol, and bio-methanol in parallel, European Energy ensures greater flexibility across markets. Together, the three products form a diversified technology platform that accelerates the transition from fossil fuels to scalable, carbon-neutral fuels.

The technology has been developed by SYPOX, a spin-off from the Technical University of Munich, with which European Energy is now cooperating. Following over 80,000 test hours and successful demonstrations under real-life conditions at biogas plants in Germany, the first 10-MW commercial e-SMR unit is scheduled for delivery in 2026.

“With SYPOX’s e-SMR technology, we can reduce the production costs of green methanol while lowering its carbon intensity – enabling the shipping and chemical sectors to decarbonize faster,” says Emil Vikjær-Andresen, Executive Vice President and Head of Power-to-X at European Energy.

“By adding bio-methanol made with e-SMR technology, we strengthen our ability to deliver competitive green fuels across different regulatory and market conditions. This is not a pivot but a complementary pathway that expands the technology solutions needed to scale green methanol globally.”

European Energy began green fuel production at its Kassø e-methanol facility in May 2025, making it the world’s first large-scale commercial e-methanol facility, with a potential production capacity of 42,000 tpy of e-methanol.

“European Energy brings unique expertise as a frontrunner in scaling green methanol production, and their commitment is a strong validation of our technology. Together, we can accelerate the industrial deployment of e-SMR and make green methanol a competitive global fuel,” says Gianluca Pauletto, CEO of SYPOX.

“Our e-SMR systems have undergone more than 80,000 hours of successful testing, including a pilot and demo installation in the field, providing both efficiency and stability. With European Energy, we can now take the next step into commercial-scale deployment, optimizing the technology for large production units and further reducing the carbon footprint of methanol synthesis.”

Methanol plays a central role in the global energy and chemical economy, serving as a fuel for the shipping sector, a feedstock for the chemical industry, and potentially also as a fuel for aviation. Today, most methanol is produced from fossil fuels, such as natural gas and coal, making the transition to green alternatives essential for meeting climate targets and reducing emissions.

The global methanol market exceeds 100 MM tonnes today and is projected to reach 500 MM tonnes by 2050. With growing demand from shipping, chemicals, and sustainable aviation fuel (SAF) production, e-SMR provides a practical next step for scaling green fuels to meet climate and compliance goals.