EUROPEAN Energy, the Danish renewables firm preparing to supply e-methanol to Maersk, has won a grant from the EU Innovation Fund’s latest €4.8bn ($5.2bn) funding round for net zero projects.

The EU awarded €55m to European Energy’s planned 100,00 tonnes per annum e-methanol facility in Denmark.

The firm started commissioning its 32,000 tonnes per year e-methanol plant in Denmark’s Kassø earlier this year. It aims to deliver e-methanol to offtakers, including Maersk, by truck by the end of this year.

European Energy plans to start construction of its 100,000-tonne e-methanol plant in 2026, with the facility becoming operational in 2028/2029.

Other maritime-related projects also won EU grants. Dutch shortsea shipping firm Samskip won an undisclosed sum for its two hydrogen-powered boxships, one of which is under construction at the Indian shipyard in Cochin.

The vessels, capable of carrying the equivalent of 500 teu, will operate between Rotterdam and Oslo. The company plans to bunker with green hydrogen at both ports, and aims to start operating fully on green hydrogen in 2030.

Finland-based hydrogen developer Ren-Gas won a €42m grant for a renewable hydrogen-derived e-methane project that has biomethane supplier and bunker firm Gasum as an offtaker.

The EU channels part of the revenue from its Emissions Trading System to decarbonisation projects in sectors that are included in the ETS. The bloc will also offer a special budget for e-fuel projects with maritime offtakers in the second round of its Hydrogen Bank auction.

Grant winners must fulfil a set of criteria to receive 40% of their grants before starting construction of their facilities, while it provides the remaining 60% post-construction phase, depending on verified emissions avoidance.