MRC -- 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, announce a joint ambition to develop a green methanol plant in the port of Huelva, southern Spain, said the company.
Green methanol is made by using green hydrogen and non-fossil sources of carbon captured from the atmosphere or from agricultural and forestry waste and can replace fossil methanol, reducing carbon emissions in hard-to-abate industries such as long-distance shipping and other industries such as chemicals and plastics.
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.
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.
We remind, Cepsa has begun to search for and develop projects for the construction and operation of biomethane production plants from agricultural and livestock waste to decarbonize its industrial activity, replacing the use of natural gas with this renewable gas.