Cepsa, owned by Mubadala and Carlyle, and C2X, an independent company majority owned by A.P. Moller Holding with A.P. Moller – Maersk as minority owner, announced their collaborative venture to establish a green methanol plant in the port of Huelva, southern Spain.
This innovative project involves creating green methanol using green hydrogen and carbon from non-fossil sources like atmospheric capture or agricultural and forestry waste. The goal is to produce approximately 300,000 tons of green methanol annually, preventing up to 1 million tons of CO2 emissions. The plant’s maximum capacity could reach 380,000 tons. A final investment decision, expected in 2025, may involve up to US$1.1 billion.
Cepsa aims to achieve a green hydrogen production capacity of 2GW by 2030, with a portion supplying the new green methanol facility.
“This investment is fully aligned with Spain’s strategy of reindustrialization and energy transition. We want that 81% of our power generation to come from renewable sources by 2030,” stated Pedro Sánchez, Spanish prime minister.
In addition, the project positions Andalusia as a highly competitive global hub for the production and transportation of green molecules. With abundant renewable electricity capacity and robust industrial and port infrastructure, this initiative aims to establish Spain as a prominent sustainable energy hub, providing independent and affordable clean energy for Europe.
“We will work with the Spanish government to develop the regulatory framework needed for this project to be successful and scalable,” added Maarten Wetselaar, CEO of Cepsa.
Furthermore, the project’s unveiling took place at COP28 in Dubai, featuring the participation of Spanish Prime Minister Pedro Sánchez, Spanish Third Deputy Prime Minister and Minister for Ecological Transition and Demographic Challenge Teresa Ribera, Brian Davis (CEO of C2X), and Maarten Wetselaar (CEO of Cepsa).
“We see a growing demand for green methanol to help industries like shipping, aviation and chemicals move away from fossil-carbon-based alternatives. While this project has strong fundamentals it will need an enabling framework to offer a competitive source of green methanol to its target customers,” explained Brian Davis, CEO of C2X.
The collaboration between Cepsa and C2X aligns with the collaborative framework established between A.P. Moller-Maersk and the Spanish government in November 2022. This initiative, part of Spain and Denmark’s commitment to enhancing bilateral cooperation in the green energy transition explores the potential for producing green fuels in Spain.
