C2X nets $100 million investment to step up green methanol game

Japanese energy company ENEOS, Danish shipping giant Maersk, and A.P. Moller Holding have agreed to jointly invest $100 million in green methanol project developer C2X to advance its global methanol production portfolio.

As disclosed, the proceeds from the investment will be primarily used to fund the final development phase of the Beaver Lake Renewable Energy (BLRE) project being developed by C2X and SunGas Renewables in Louisiana.

Once operational, BLRE is planned to produce over 500,000 tonnes of green methanol per annum. The project is in discussions to secure long-term offtake from Maersk and other players in the shipping, chemicals, and industrial sectors.

The project will use SunGas’ S-1000 gasification technology system to convert biomass into low-carbon methanol and will also capture and permanently sequester approximately 1 million tonnes per year of surplus biogenic CO2 from the gasification process, generating carbon dioxide removal (CDR) credits.

Construction of the multibillion-dollar project is scheduled to start in the second half of 2026.

C2X will also use the newly secured investment to advance the rest of its green methanol portfolio comprising projects in other U.S. locations as well as in Spain and Egypt.

In addition to investing, ENEOS formed a strategic partnership with C2X, which considers methanol offtake and the application of SunGas’ gasification technology into its system portfolio.

Satoru Otatsume, General Manager, Low Carbon Solution Department ENEOS, said: “We are eager to partner with C2X, a pioneer in green fuels with extensive expertise in this field and a globally competitive portfolio. We have been impressed by the C2X team and its choice of SunGas’ leading gasification technology system to underpin the commercially competitive and economically attractive BLRE project. Together, this new strategic partnership shall enhance ENEOS’ low carbon activities to develop a world scale business producing and marketing green molecules globally”

Brian Davis, CEO of C2X, commented on the investment: “We truly appreciate the continued support of our existing shareholders, and we welcome our new partner, ENEOS, as a significant shareholder in C2X. ENEOS will enable us to accelerate the journey to low carbon processes for multiple markets and industries. ENEOS’ market position, industry relationships and technological capabilities will add significant value to C2X’s portfolio. Our collaboration represents not only a strategic partnership but also a shared vision for a more sustainable future.”

C2X was established in 2023 by A.P. Moller Holding as majority owner and A.P. Moller – Maersk as the minority owner.

The company is pursuing large-scale green methanol projects near the Suez Canal in Egypt and the port of Huelva in Spain, as well as other opportunities across several geographies, with an ambition to have a production capacity of more than three million tonnes per year by 2030.