Cepsa, and C2X have announced a joint ambition to develop a green methanol plant in the port of Huelva, southern Spain.
According to Cepsa, 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.
As the company stated, if approved, the project has the opportunity to create 2,500 direct and indirect jobs, further supporting the Andalusian Green Hydrogen Valley being developed by Cepsa and its partners with an ambition to reach a green hydrogen production capacity of 2GW by 2030. Some of the green hydrogen produced will supply the new green methanol facility.
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.
… noted Cepsa CEO, Maarten Wetselaar
The project also places Andalusia as one of the most competitive locations globally for the production and transportation of green molecules thanks to its renewable electricity capacity and industrial and port infrastructure, positioning Spain as a leading sustainable energy hub and securing independent and affordable clean energy for Europe.
This project will not only represent a significant reduction of CO2 emissions. Green methanol will also allow us to advance in the decarbonization 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.
… said Spanish Prime Minster, Pedro Sánchez
The project was presented at COP28 in Dubai with 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 C2X; and Maarten Wetselaar, CEO Cepsa.
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.
… said C2X CEO, Brian Davis
C2X, an independent company majority owned by A.P. Moller Holding with A.P. Moller – Maersk as minority owner. The partnership between Cepsa and C2X follows a protocol of collaboration agreed between A.P. Moller – Maersk and the government of Spain in November 2022 to explore the possibilities of producing green fuels in the country.
