CEPSA and the Danish shipping giant Maersk are joining forces to develop Europe’s largest green methanol facility in Huelva, backed by a 1 billion euro investment. The announcement was made during COP28 in the presence of Spain’s Prime Minister Pedro Sánchez and Vice President Teresa Ribera, highlighting a shared commitment to cleaner maritime fuels and industrial decarbonization.
The planned megaplant in the port of Huelva is slated to begin with an initial capacity of 300,000 tonnes of green methanol per year, with potential expansion to 380,000 tonnes. Green methanol is produced using green hydrogen and non-fossil carbon that is captured from the atmosphere or sourced from agricultural and forestry waste. It can replace conventional methanol, enabling lower CO2 emissions in shipping, heavy transport, and in downstream sectors such as chemicals and plastics manufacturing.
Regulatory Notice
CEPSA and C2X, the new methanol subsidiary of Maersk’s parent company, will not decide on the plant’s construction or the necessary investments until 2025. As part of the process, a formal notice to seafarers will be issued in the presence of the Prime Minister and the Deputy Prime Minister. For the project to advance, a supportive regulatory framework will be required.
“The collaboration with the Spanish Government will establish the regulatory conditions needed for the project to succeed and grow,” stated Maarten Wetselaar, CEO of CEPSA, ahead of the officials’ remarks. He added that although the project rests on solid foundations, its market competitiveness demands a tailored framework allowing customers to access a reliable source of green methanol. The company looks forward to working with CEPSA and the Spanish Government to bring this project to fruition, according to statements from C2X CEO Brian Davis.
The announcement follows signals from Repsol, Spain’s leading oil company and a direct rival of CEPSA, that new hydrogen investments in Spain could be affected if the government pursues a proposed tax on major energy companies. The measure, initially designed for a two-year period, is being debated in the context of a broader PSOE-Sumar government program that calls for its continuation.
Support for a hydrogen megaproject in Andalusia
CEPSA emphasized that, if approved, the project could directly and indirectly provide jobs for around 2,500 people. The methanol facility is also expected to accelerate the development of the Andalusian Green Hydrogen Valley, a broader initiative to reach a green hydrogen production capacity of 2 gigawatts by 2030. Some of the produced green hydrogen would be used to fuel the new green methanol.
“Beyond cutting emissions, green methanol will help decarbonize hard-to-abate sectors such as shipping and the chemical industry. This marks a critical step toward a fossil-free future,” Sánchez commented, underscoring Spain’s strategy to reindustrialize and accelerate the energy transition. The government aims for a substantial share of energy production to come from renewables by 2030, with green hydrogen playing a pivotal role. Projects like this position Spain as a global reference point in clean energy development.