Spain Announces €1 Billion Green Methanol Plant At COP28

THE COP28 Climate Summit was the setting for a ground-breaking announcement from Spain’s Prime Minister Pedro Sanchez, where an ambitious green methanol plant project was unveiled.

At the COP28 summit, President Pedro Sanchez revealed the partnership between Cepsa and C2X. This collaboration aims to establish the largest green methanol facility in Europe and one of the top five largest in the world, according to a report published by La Moncloa.

The event, held in Dubai, saw the presence of C2X CEO Brian Davis, and Cepsa CEO Maarten Wetselaar, among other representatives.

Transformative Economic Impact

Pedro Sanchez emphasised the project’s monumental scope, set to generate 300,000 tonnes of green methanol annually. This initiative is expected to cut down CO2 emissions by 1.5 million tonnes each year.

‘This project will not just lead to a significant reduction in CO2 emissions,’ Sanchez stated, acknowledging the role of green methanol in decarbonising challenging sectors like maritime transport and the chemical industry.

The Spanish PM underscored the strategic benefits of this venture, reinforcing Spain and the EU’s energy independence.

The project aligns with Spain’s reindustrialisation strategy, promising an investment of €1 billion in Huelva and creating 2,500 jobs in the process. It positions the region as a pivotal centre for green methanol and renewable hydrogen production and transportation.

Spain’s Renewable Energy Leadership

Reaffirming Spain’s commitment to the energy transition, Sanchez stated, ‘We want 81 per cent of our electricity generation to come from renewable sources by 2030’.

Spain’s global standing in renewable energy – fifth in wind energy and eighth in renewable generation – makes it an attractive destination for energy transition investments.

Sanchez highlighted that Spain hosts 20 per cent of the world’s green hydrogen projects, trailing only the USA. ‘The Government of Spain is fully committed to offering all the public support necessary to make Spain the European centre for green hydrogen,’ he affirmed.