A feasibility study at packaging Opal’s Maryvale Paper Mill in Gippsland will examine the potential to capture and reuse biogenic carbon dioxide (CO2) to produce e-methanol, a low-carbon fuel alternative for sectors such as shipping.
The study is led by paper and packaging company Opal, along with renewables developer European Energy Australia and its subsidiary Ammongas, and it will run until mid-2026. It will assess the technical and commercial viability of capturing biogenic CO2 from one of the mill’s boilers, where it is produced as a by-product of paper manufacturing.
The captured CO2 could be purified and liquefied for use at a proposed Power-to-X (PtX) plant, which may be located on the same site. PtX technology converts renewable energy and sustainable materials into fuels and chemicals that can support industries that are difficult to decarbonise.
According to the companies, biogenic CO2 differs from fossil fuel-based emissions as it forms part of the natural carbon cycle. When combined with renewable energy and water, it can be used in the production of e-methanol.
European Energy already operates what it describes as the world’s largest PtX and e-methanol facility in Kasso, Denmark. The Gippsland study is part of the company’s broader plan to expand its PtX and carbon capture technologies in Australia.
Catriona McLeod, CEO of European Energy Australia, said the Australian market had “enormous potential to develop PtX”. She added that the technology could support both low-carbon fuel development and regional investment.
Ammongas CEO Jaime Casasus-Bribian said the study offered an opportunity to assess how the company’s carbon capture expertise could be applied locally. “By potentially deploying our large-scale carbon capture and PtX technologies with Opal and European Energy Australia, we can unlock new value from local biogenic CO2 and drive the transition to green methanol,” he said.
David Jettner, general manager environment and sustainability at Opal, said the study aligned with the company’s focus on circularity. “This study is another way to maximise the value from our use of renewable plantation wood,” he said. “If the feasibility outcome is successful, it offers the potential for a multimillion-dollar investment in carbon capture in the Gippsland region.”
European Energy currently supplies green methanol to Maersk, Lego Group and Novo Nordisk. Ammongas captures, purifies and liquefies biogenic CO2 from the Tønder biogas plant in Denmark.
