Cepsa, which is 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, has announced a joint ambition to develop a green methanol plant in the port of Huelva, southern Spain.
The project’s aim is to reach an estimated annual production capacity of 300,000 tons of green methanol, which Cepsa calculates would prevent the emission of up to 1 million tons of CO2.
The plant would have the capacity to reach a maximum production of 380,000 tons. A final investment decision for this project, which would entail an investment of up to €1 billion, is expected to be made in 2025.
The project was presented at COP28 in Dubai.
Spanish Prime Minster, Pedro Sánchez says: ‘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 decarbonise. We will work with the Spanish government to develop the regulatory framework needed for this project to be successful.’
‘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 in order to offer a competitive source of green methanol to its target customers,’ adds C2X CEO, Brian Davies.
