CEPSA and C2X, an independent company majority-owned by A.P. Moller Holding and minority-owned by A.P. Moller-Maersk, are joining forces to build and operate a green methanol production plant at the Port of Huelva in Punta del Sebo, placing Andalusia at the forefront of renewable energy production for some of the "most challenging sectors to decarbonize," such as maritime and air transport and the chemical industry.

The project, presented in the city of Huelva on Wednesday, will be Europe's largest green methanol plant with an estimated annual production capacity of 300,000 tons, avoiding the emission of up to one million tons of CO2. Additionally, the project could create 2,500 direct and indirect jobs. The final investment decision of one billion euros is expected next year, with the plant set to begin operations in 2028, according to a press release from CEPSA.

Both CEOs of the companies, Maarten Wetselaar (CEPSA) and Brian Davis (C2X), presented the project and characteristics of this mega-plant in an event held in Huelva, in the presence of the President of the Junta de Andalucia, Juanma Moreno, the mayor of Huelva, Pilar Miranda, and the director of the Port of Huelva, Ignacio Álvarez-Ossorio, among other representatives of Andalusian society.

"Today, I celebrate the forward step taken by CEPSA and C2X to develop Europe's largest green methanol plant in Huelva. Such a project of this magnitude is only possible thanks to the collaboration of two great companies. This agreement combines production, maritime transport, and the supply of green energies, resulting in employment, emissions reduction, and economic revitalization. This positions Andalusia as a global sustainability leader and highlights the strategic role of Andalusian ports in the world's green energy transport configuration," stated Moreno.

The President of the Junta emphasized that "today is a historic day for Huelva" as "a project on which we have been working for many months, both from the Port of Huelva and from the City Council and the Junta de Andalucia, becomes a reality. We believe in Huelva, as CEPSA and Maersk do. Large companies know that investing in Huelva is a safe bet. That is why we are here, because of the confidence and security that our city generates in investors."

On her part, Pilar Miranda highlighted that "Huelva becomes today the green capital of Southern Europe," starting the path towards its third industrial revolution. This leap will allow for "its greatest economic, social, and urban transformation in the last century."

CEPSA CEO Maarten Wetselaar stated that this agreement represents "another milestone" in the company's global strategy "to lead sustainable fuel production and contribute to decarbonization" for its clients, providing solutions ranging from second-generation biofuels to green hydrogen derivatives such as methanol or ammonia.

"I want to thank the support that the Andalusian Green Hydrogen Valley has been receiving from both the national government and regional and local authorities. Together, we are strengthening Andalusia's position as a European hub for renewable fuels, taking advantage of our proximity to the important ports of Huelva and Algeciras for their distribution. The new green methanol plant is a major flagship project that will boost the economy of Huelva and Andalusia, attracting quality employment and a new industry that promotes the activity of local companies and SMEs," he highlighted.

C2X CEO Brian Davis explained that his company sees "a growing demand for green methanol" to "help industries such as maritime, aviation, and chemistry move away from fossil fuel-based energy solutions," emphasizing that "Spain, and particularly Andalusia, has all the conditions to become a global hub for production and distribution. We want to continue working with all the involved administrations and partners like CEPSA to make it a reality."

Similarly, C2X Spain CEO Diego Perdones assured that they see "great potential in local talent," which further reinforces their belief in the role that this community and province can play in increasing green methanol production capacity and meeting the growing global demand. "We want to collaborate with local educational institutions to promote the professional profiles that we will need in the next five years," he emphasized.

Through this initiative, CEPSA and C2X highlighted their "commitment" to Andalusia as a "strategic location" in their plans to advance the energy transition, considering that 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" and boasts a "top-level port infrastructure connected to the main ports and export routes in Europe and the world."

In this regard, they emphasized that the establishment of this plant will "position the Port of Huelva as a global benchmark in the supply of new sustainable fuels for maritime transport." Furthermore, they highlighted that the province of Huelva, where a relevant industrial fabric already exists, "constitutes a privileged location for the development of large-scale projects."

Green methanol is a synthetic fuel produced from green hydrogen and non-fossil carbon captured from the atmosphere or generated from agricultural and forestry waste, and it can replace conventional methanol, significantly reducing CO2 emissions from industries such as maritime and air transport or the chemical industry without the need for substantial changes to their facilities or ships and airplanes.