Austrian oil company OMV has agreed to buy e-methanol from European Energy and Mitsui's Kasso plant in Denmark to use it in road transport fuels in Germany.
The deal follows talks with OMV that European Energy disclosed in May. The multi-year deal was signed by Solar Park Kasso (SPK), the joint venture in which European Energy holds 51pc and Mitsui 49pc. The firms own the 42,000 t/yr e-methanol plant and the co-located 304MW solar park through SPK.
First deliveries of e-methanol to OMV have already been made, the firms said. The firms did not disclose volumes, prices or the length of the contract.
It is the fourth publicly-announced long-term offtake agreement for Kasso output, after deals with shipping firm Maersk, toy maker Lego and pharmaceutical firm Novo Nordisk.
The e-methanol will be certified as a renewable fuel of non-biological origin (RFNBO) under EU rules. The contract requires greenhouse gas (GHG) savings well above the RFNBO minimum threshold of 28.2g CO2 equivalent/MJ. The firms linked this to compliance with road transport quotas under the EU's amended renewable energy directive (RED III) in Germany.
OMV is the first buyer for Kasso from the refining and fuels sector. The deal is a clear indication that RED III transposition in key member states is creating demand for e-methanol in road transport.
Refiners can use e-methanol to make gasoline additives such as methyl tertiary butyl ether (MTBE), use it as a feedstock in fatty acid methyl ester (Fame) biodiesel production or blend small quantities directly into gasoline. Few if any infrastructure changes are needed for these uses, as e-methanol can replace conventional fossil methanol by simply switching supply.
Some firms have also converted e-methanol from Kasso directly to synthetic e-gasoline.
Germany, Spain and the Netherlands — which have transposed RED III transport quotas — used a combined 1.26mn t of fossil methanol in road fuel applications in 2025, Argus Consulting data show. The regulatory value of e-methanol in Germany could be close to or above €5,000/t ($5,852/t) at prevailing GHG certificate prices, based on Argus calculations. Spot fossil methanol in Rotterdam averaged €405/t in July.
Kasso began production in May 2025 as the first commercial-scale e-methanol plant, combining solar power with biogenic CO2. European Energy said in May that the site was still ramping up from 32,000 t/yr towards nameplate capacity.
