Major Japanese trader Mitsui and Danish renewable energy company European Energy have jointly launched the world's first mass production of environmentally friendly e-methanol.

Their joint venture, Solar Park Kasso ApS, produces low-carbon e-methanol by fusing hydrogen made with the use of electricity generated at solar facilities in a suburb of Aabenraa, southern Denmark, with carbon dioxide captured from biomass sources, according to Mitsui's announcement Tuesday. The annual production amount will total up to 42,000 tons.

Through e-methanol supply, Mitsui and European Energy aim to support decarbonization efforts in the shipping industry and at other companies heavily dependent on fossil fuels and help realize a sustainable society.

The amount of CO2 emitted from e-methanol production is up to 97% less than that from methanol produced using fossil fuels. E-methanol can also be processed into sustainable aviation fuel.

Solar Park Kasso will sell its e-methanol to major Danish shipping and logistics company AP Moller-Maersk. Lego, a construction toy maker in Denmark, will use the e-methanol as a material for its plastic products.

Expectations and demand for e-methanol are high among shipping firms and airlines, Solar Park Kasso CEO Rene Alcaraz Frederiksen, said, expressing his eagerness to expand global sales, including to Japanese companies.