Cepsa, C2X team up to develop green methanol plant in Europe

Green hydrogen produced at the Andalusian Green Hydrogen Valley by Cepsa will be supplied to the green methanol plant. 

PHOTO: Port of Huelva in Spain. Port of Huelva

Cepsa, a Spanish multinational oil and gas major, and its partners are developing the Andalusian Green Hydrogen Valley. Under this project, two green hydrogen generation plants are being built in energy parks in southern Spain’s Palos de la Frontera, Huelva and San Roque in Campo de Gibraltar, Cádiz. Under this project, green hydrogen will be produced using renewable energy sources.

The Andalusian Green Hydrogen Valley will supply a portion of the green hydrogen produced to the green methanol production plant.  

A final investment decision on the green methanol production facility is expected in 2025. The plant will be developed in Huelva, with an investment of up to €1 billion ($1.08 billion) and will have an annual production capacity of 300,000 mt. 

Spanish Prime Minister, Pedro Sánchez has said that green methanol will help push decarbonisation in hard-to-abate sectors, including shipping. 

The partnership between Cepsa and C2X follows an agreement between A.P. Moller-Maersk and the Spanish government in November 2022 to explore the possibilities of producing green fuels in the country. 

Last month, the Danish shipping giant A.P. Moller-Maersk’s green methanol arm C2X acquired land in Huelva for the green methanol plant.

By Manjula Nair

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