Green methanol plant planned for Huelva

The €1 billion project aims to reach an estimated annual production capacity of 300,000 tonnes of green methanol, reducing CO2 emissions by up to 1 million tonnes and creating 2,500 new jobs in the Andalusian region.

Andalusia is a potentially key global location for such production thanks to its renewable electricity capacity and industrial and port infrastructure. With its low-emission combustion, methanol has been mooted as a possible future fuel for workboats.

“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,” said Cepsa chief executive Maarten Wetselaar.

By 2050 the demand for methanol could triple to around 300 million tonnes per annum, with the majority being for green methanol. A step change is needed to scale production capacity of non-fossil methanol to meet growing demand that is building now, with significant support from governments required to ensure prices are competitive.

“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,” said C2X chief executive Brian Davis.

The partnership between Cepsa and C2X follows a protocol of collaboration agreed between the latter’s owner A.P. Moller – Maersk and the government of Spain in November 2022 to explore the possibilities of producing green fuels in the country.

“This is a significant step towards a future free of fossil fuels,” said Spanish prime minister Pedro Sánchez.

“We want that 81% of our power generation to 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.”