Cepsa and C2X have announced that they will establish a joint project to develop a green methanol plant in Spain.
Making the announcement at COP28 and in the presence of Spanish Prime Minister Pedro Sánchez, the two companies said the joint project will provide green methanol for multiple industries, including chemicals and shipping.
The project is to develop a plant in Huelva, Spain, entailing an investment of up to €1bn, that would become one of the five largest green methanol plants in the world with an annual production capacity of 300,000 tonnes, preventing the emission up to 1m tonnes of fossil CO2.
A final investment decision is expected in 2025.
Prime Minister Pedro Sanchez said: “This project will not only represent a significant reduction of CO2 emissions. Green methanol will also allow us to advance in the decarbonisation of hard-to-abate sectors, such as shipping or the chemical industry. In other words, this is a significant step towards a future free of fossil fuels.
“This investment is fully aligned with Spain’s strategy of reindustrialization and energy transition. We want that 81% of our power generation come from renewable sources by 2030. Green hydrogen will play a crucial role and, thanks to projects like this, Spain stands as a global reference.”
Cepsa CEO Maarten Wetselaar, said: “This partnership is another milestone in our strategy to make Spain a European hub for green molecules this decade, with viable projects to reduce emissions in sectors that are difficult and urgent to decarbonize. We will work with the Spanish government to develop the regulatory framework needed for this project to be successful and scalable.”
Brian Davis, CEO of C2X, added: “We see a growing demand for green methanol to help industries like shipping, aviation and chemicals move away from fossil carbon-based products. While this project has strong fundamentals it will need an enabling framework in order to offer a competitive source of green methanol to its target customers. We look forward to working with Cepsa and the Spanish government as we develop the project.”