European Energy sees progress in its battery roll-out and Power-to-X in the first half of 2026. The company has been ramping up a series of larger asset divestments in the first half of 2026.
- 167 MW / 545 MWh of battery storage installed, with six further projects under construction.
- Financial results were impacted by delayed project divestments, though several larger transactions are advancing and difficult market conditions are improving.
- Power-to-X portfolio experienced increased demand for RFNBO-certified e-methanol.
European Energy continued to mature its renewable energy portfolio and expanded activities in battery storage, Power-to-X and renewable energy solutions during the first half of 2026, while progressing several major project sales processes.
For the second quarter of 2026, European Energy reported EBITDA of EUR 7.2m compared with EUR 53m in the same period last year.
The variance primarily reflects the timing of project divestments rather than underlying activity levels. Progress continued across several larger divestment processes, while market conditions improved through higher electricity prices and fewer negative-price hours. As a result, power sales contributed EUR 76m to revenue in the first half of 2026, representing the highest first-half revenue from power sales to date.
'We are seeing stronger investor dialogue and appetite for high-quality renewable assets delivered by European Energy. The conversations increasingly extend beyond individual projects to larger portfolios and platforms,' says Knud Erik Andersen, CEO and co-founder of European Energy.
Operational activities
European Energy has accelerated its roll-out of battery energy storage systems as storage and hybridisation become a growing part of the company’s renewable energy portfolio. As of August 2026, seven battery storage systems totaling 167 MW / 545 MWh had been installed in Denmark and the Baltics, with a further six projects under construction across Denmark, the UK, Australia, Poland and the Baltics.
By integrating storage with renewable power generation, European Energy can improve capture prices, reduce balancing costs and exposure to low or negative electricity prices, while accessing additional revenues from ancillary services.
'Storage is becoming a natural complement to solar and wind. Our BESS roll-out is progressing well, and we expect financial contribution from the upgrading programme during second half of 2026,' says Knud Erik Andersen.
European Energy continued to advance projects across its development, construction and operating portfolio during the first half of 2026.
At the end of the period, 1,009 MW of projects were under construction, while the operating renewable energy portfolio had reached 1.76 GW, an increase of 31% compared with the same period last year. European Energy produced 1,041GWh of renewable electricity during the first six months of 2026.
Over the recent years, European Energy has secured more than 10 GW of grid connections across its markets. Around 5 GW of its development pipeline has been identified as potential candidates for its Powered Land concept, which combines land, planning, grid connections, substations, renewable generation and battery backup for data centre developments.
The concept responds to growing demand from data centre developers and hyperscalers for access to renewable energy alongside suitable sites. The first projects are under discussion, with European Energy aiming to conclude its first agreements in late 2026 or early 2027.
Commercial momentum builds in Power-to-X
European Energy also saw further commercial development within renewable fuels. During the period, European Energy was awarded more than EUR 200 million in the German hydrogen tender to support the further development of its Power-to-X activities in Denmark and entered into a cooperation with ENGIE on large-scale green hydrogen development.
In August, the Kassø facility concluded a multi-year e-methanol offtake agreement with OMV, making it the facility’s fourth multi-year agreement. The Kassø facility, a joint venture between European Energy and Mitsui Ltd., has also agreed to deliver e-methanol for use by Shell, further broadening its customer base.
'The market for renewable fuels remains at an early stage, but we are now seeing regulation translate into concrete orders. The growing order intake at Kassø gives us confidence to work towards increasing production capacity,' says Knud Erik Andersen.
Against the backdrop of growing order intake, European Energy is working to increase Kassø’s annual production capacity from the originally planned 32,000 tonnes to more than 40,000 tonnes.
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Source: European Energy
