ENEOS, A.P. Moller Holding, and A.P. Moller – Maersk Invest $100 Million in Green Methanol Developer C2X

Japan’s leading energy company ENEOS has partnered with A.P. Moller Holding and A.P. Moller – Maersk to invest $100 million in C2X, a green methanol developer established by A.P. Moller Holding in 2023. This significant investment will primarily support the final development of a green methanol project in Louisiana, as well as further C2X’s initiatives in the U.S., Spain, and Egypt to produce green methanol for the shipping, aviation, and chemical industries.

Advancing Sustainable Energy Solutions

C2X has stated that this investment marks a crucial milestone in advancing the Beaver Lake Renewable Energy project in Louisiana towards Final Investment Decision (FID). In collaboration with SunGas Renewables, the project will utilize SunGas’ S-1000 gasification technology to convert biomass into low-carbon methanol while capturing and sequestering approximately 1 million tonnes per year of surplus biogenic CO2, thereby generating carbon dioxide removal (CDR) credits.

The multibillion-dollar Beaver Lake project is set to commence construction in the latter half of 2026, with operations expected to begin by the end of 2028, producing over 500,000 tonnes of green methanol annually. C2X is also in talks to secure long-term offtake agreements with Maersk and other key customers in the shipping, chemicals, and industrial sectors.

Repurposing Former Industrial Sites

The Beaver Lake facility, situated in Rapides Parish, Louisiana, will repurpose a former International Paper site that ceased operations in 2009. SunGas estimates the value of the facility at $2.4 billion and plans to establish multiple facilities to supply green methanol in the future.

Strategic Partnerships and Collaborations

In May 2024, SunGas and C2X announced a strategic partnership, with C2X also making an investment in SunGas. ENEOS’ recent investment in C2X has led to a strategic partnership focusing on methanol offtake and the integration of SunGas’ gasification technology into ENEOS’ system portfolio.

AP Moller’s creation of C2X was aimed at expediting the global production and distribution of methanol. The company has unveiled projects in Spain, Egypt, and the U.S., with the latest funding from ENEOS, Maersk, and APM poised to accelerate the development of its project portfolio.