STORY: Will the price of green fuel like e-methanol be more affordable in the future?
The opening of the world's first commercial-scale e-methanol plant in Denmark might be a start.
:: Sustainable Business
Zero-emission shipping fuels like e-methanol are typically produced using renewable energy.
They tend to be more expensive than conventional fuel largely because they are not produced at scale.
As countries try to meet carbon emission targets set by the International Maritime Organization, the shipping sector is under pressure to find new sources of fuel.
Shipping giant Maersk is set to buy part of the e-methanol production as a low-emission fuel for its fleet of container ships.
Emma Mazhari is Head of Energy Markets at Maersk.
"This is a small step, you should say. So we consume about 10 million tons of fuel oil equivalent on an annual basis in our fleet. So this is a small drop, let's say. But of course, it's the first step. So it's really showing the way."
Located in Kasso, the new plant is owned by Denmark's European Energy and Japan's Mitsui.
Its joint owners said the plant can produce over 46,000 tons of e-methanol per year.
Here's Knud Erik Andersen, CEO of European Energy.
"I hope that this facility can at least have a kind of a proof-of-concept role and I'll be proud if this facility can play that role. But besides that, we are, of course, a small country and we need to expand to larger economies where this technology can be utilized."
The Kasso plant will make e-methanol using renewable energy and CO2 captured from biogas plants and waste incineration.
In addition to shipping, it can be used in plastic production such as drugmaker Novo Nordisk's injection pens, and Lego's toys.
Excess heat generated from the plant is expected to warm thousands of households in the local area.
