Spanish energy company Cepsa and C2X, a company which is majority owned by A.P. Moller-Maersk, are planning to develop at the Port of Huelva, Spain, what will be Europe’s largest green methanol plant, positioning Huelva and Andalusia as global references in the energy transition.
With an investment of up to €1bn and the creation of 2,500 direct and indirect jobs, the two companies plan produce green methanol from renewable sources in order to supply sustainable energy for hard-to-abate industries including shipping. It will have an annual production capacity of 300,000tons, avoiding the emission of up to 1m tons of CO2.
Cepsa CEO Maarten Wetselaar said: “This agreement is another milestone in our global strategy to lead the production of sustainable fuels and help decarbonise our customers with solutions ranging from 2G biofuels to hydrogen derivatives, such as green methanol or ammonia. I would like to thank both the national government and regional and local authorities for their support for the Andalusian Green Hydrogen Valley. Together we are strengthening Andalusia’s position as a European hub for renewable fuels, leveraging our proximity to the important ports of Huelva and Algeciras for their distribution. The new green methanol plant will be a driving force to boost the economy of Huelva and Andalusia, attracting high-quality employment and a new industry that will bring business to local companies and SMEs”
C2X CEO Brian Davis said: “We see a growing demand for green methanol to help industries such as maritime, aviation, and chemicals move away from fossil-based energy solutions. Spain, and particularly Andalusia, meets all the conditions to become a global production and distribution hub, and we want to continue working with all the administrations involved and with partners like Cepsa to make this a reality”
The final decision on the investment is scheduled for 2025, while the plant would begin operating in 2028.
Diego Perdones, CEO C2X Spain said: “We see great potential of local talent, and this makes us believe even more in the role this community and province can play to boost green methanol production capacity and meet the growing demand we observe worldwide. We want to collaborate with local educational institutions to promote the professional profiles that we’ll need in the next five years.”
Through this initiative, Cepsa and C2X are reinforcing their commitment to Andalusia as a strategic location in their plans to advance in the energy transition. This region has top-level port infrastructure, connected to the main ports and export routes in Europe and beyond. The plant’s establishment will position the Port of Huelva as a global reference in the supply of new sustainable fuels for shipping.
