At COP28, Cepsa and C2X announce a joint project to provide green methanol for multiple industries, including chemicals and shipping, according to Cepsa's release.
The project is to develop a plant in Huelva, Spain, entailing an investment of up to €1 billion, that would become one of the five largest green methanol plants in the world with an annual production capacity of 300,000 tons, preventing the emission up to 1 million tons of fossil CO2.
Green hydrogen produced in the Andalusian Green Hydrogen Valley being developed by Cepsa and partners in southern Spain will supply part of the hydrogen required by the plant.
A final investment decision is expected in 2025. If approved, the project has the opportunity to create 2,500 direct and indirect jobs and further position Andalusia and Spain as a leading global sustainable energy hub for the production of green molecules such as hydrogen and methanol, and for their use and transportation through the region’s strategic ports.
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.
The project 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.
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. This partnership is also in line with the declarations made at governmental level by Spain and Denmark to increase their bilateral cooperation in green energy transition.