Opal and European Energy Australia Launch Feasibility Study for Carbon Capture and E-Methanol Production in Gippsland
Opal and European Energy Australia have announced an exciting new collaboration that marks a significant step toward advancing renewable energy and circular economy initiatives in Gippsland. The companies have commenced a feasibility study at Opal’s Maryvale Paper Mill to assess the potential for carbon capture of biogenic CO₂ and its conversion into e-methanol, a sustainable fuel.
The study, expected to run until mid-2026, will evaluate both the technical and commercial viability of capturing biogenic CO₂ from the mill and using it to produce e-methanol—a clean chemical that can help decarbonise hard-to-abate sectors such as transport and manufacturing.
European Energy, the Danish parent company, together with its subsidiary Ammongas, aims to bring their Power-to-X (PtX) expertise and proven experience to Australia. PtX is a transformative technology that converts renewable energy and sustainable materials into green fuels and chemicals, enabling industries to transition toward a low-carbon future. Successfully operating the world's first large-scale e-methanol facility and the world's largest commercial PtX plant of its kind in Kassø, Denmark. This new partnership demonstrates a strong commitment to investing in Power-to-X solutions within the Gippsland region.
A Milestone for Gippsland’s Renewable Energy Future
This announcement follows a landmark event hosted by Food & Fibre Gippsland (F&FG), themed “Collaboration with Denmark in Advancing Gippsland’s Circular Economy & Renewable Energy Potential.” The event brought together industry leaders, government representatives, and international partners, including Her Excellency Mrs. Ingrid Dahl-Madsen, Danish Ambassador to Australia, New Zealand, and Fiji, in partnership with the Trade Council of Denmark in Australia.
Simon Johnson, CEO of Food & Fibre Gippsland is pleased to share this announcement:
“We are delighted to hear this news and that the work over many years between the Danish Trade Council and Gippsland, including a partnership with Food and Fibre Gippsland, is seeing results for Gippsland and our local industry, proving the power of international collaboration and strong stakeholder connections across our region.”
Dorothy Dellosa, Senior Advisor at the Royal Danish Consulate General / Trade Council of Denmark, shared with the F&FG team:
“On behalf of our team from the Trade Council of Denmark in Australia, we greatly appreciate the opportunity and being part of this significant milestone. This highlights our aligned initiatives and our strong partnership.”
Read the Full Media Release from Opal here
Continue the Conversation
This project reinforces Gippsland’s position as a hub for renewable energy innovation and international collaboration. Food and Fibre Gippsland is committed to supporting our strong connections with
Denmark and across our region, to foster innovation and investment in our transition to a low-carbon economy.
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