Cepsa, C2X to turn Port of Huelva into Europe's main green methanol hub
With an investment of up to 1 billion euros and the creation of 2,500 direct and indirect jobs, the two companies plan to develop Europe’s largest green methanol plant, positioning Huelva and Andalusia as global references in the energy transition
The companies presented their joint project to produce green methanol from renewable sources to regional and local representatives in Huelva today. It will be used to supply sustainable energy for shipping and air transport and the chemical industry, among other hard-to-abate sectors.
It will be one of the five largest green methanol plants in the world, with an annual production capacity of 300,000 tons, avoiding the emission of up to 1 million tons of CO2
The joint venture that Cepsa and C2X, an independent company majority owned by A.P. Moller Holding with A.P. Moller – Maersk as a minority owner, have formed to build and operate a green methanol production plant in the Port of Huelva, at Punta del Sebo, positions Andalusia at the cutting edge of global production of renewable energy for hard-to-abate sectors such as maritime and air transport and the chemical industry.
This facility, which will be Europe's largest green methanol plant, will have an estimated annual production capacity of 300,000 tons, which will prevent the emission of up to one million tons of CO2. The project could also create 2,500 direct and indirect jobs. The final decision on the investment of 1 billion euros is scheduled for next year, while the plant would begin operating in 2028.
The CEOs of both companies, Maarten Wetselaar (Cepsa) and Brian Davis (C2X), presented the project and features of this mega-plant at a ceremony held in Huelva attended by Juan Manuel Moreno Bonilla, president of the Regional Government of Andalusia, Pilar Miranda Plata, mayor of Huelva, and Ignacio Álvarez-Ossorio, director of the Port of Huelva, and other representatives of Andalusian society.
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 the best conditions to be one of the most competitive and efficient in the world in the production of green hydrogen and methanol. It has top-level port infrastructure, connected to the main ports and export routes in Europe and the world. The plant's establishment will position the Port of Huelva as a global reference in the supply of new sustainable fuels for shipping. Meanwhile, the province of Huelva, which already has an important industrial fabric, is a privileged location for the development of large-scale projects.
Green methanol, a synthetic fuel made using green hydrogen and non-fossil sources of carbon captured from the atmosphere or from agricultural and forestry waste, can replace conventional methanol, allowing a significant reduction in CO2 emissions in industries such as maritime and air transport or chemicals without the need for major changes to their facilities, ships or aircraft.
