Spanish oil major Cepsa and Denmark’s C2X on Friday announced joint plans to develop a green methanol plant in the port of Huelva in southern Spain.
Cepsa, which is owned by Mubadala and Carlyle, and C2X, a company recently launched by Danish shipping group AP Moller-Maersk A/S (CPH:MAERSK-B) and its parent, unveiled the project at COP28 in the presence of Spanish prime minister Pedro Sanchez.
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The companies are looking to produce 300,000 tonnes of green methanol a year for hard-to-abate industries, such as shipping and chemicals, and expect to make a final investment decision on the EUR-1-billion (USD 1.09bn) project in 2025.
The initiative could support the Andalusian Green Hydrogen Valley that Cepsa is developing with partners, targeting 2 GW of green hydrogen production capacity by 2030. The valley would supply hydrogen to the green methanol plant.
“We see a growing demand for green methanol to help industries like shipping, aviation and chemicals move away from fossil-carbon based alternatives,” C2X chief executive Brian Davis said, adding that the project will still need an enabling framework. “We look forward to working with Cepsa and the Spanish government as we develop the project,” Davis further said.
(EUR 1.0 = USD 1.093)
