Japanese energy firm ENEOS, Danish shipping company Maersk, and A.P. Moller Holding have agreed to invest US$100 million in green methanol project developer C2X to proceed with its global methanol production portfolio.
The transaction is subject to the satisfaction of customary closing conditions, including applicable regulatory clearances.
The proceeds from the investment will primarily be used to fund the final development phase of the BLRE project which C2X is developing together with SunGas Renewables in Alexandria in the State of Louisiana. Once operational, BLRE will produce over 500,000 tonnes of green methanol per annum and is in discussions to secure long-term offtake from Maersk and other customers from shipping, chemicals and industrial sectors.
The project will use SunGas’ industry leading S-1000 gasification technology system to convert biomass into low carbon methanol. The project will also capture and permanently sequester approximately 1 million tonnes per year of surplus biogenic CO2 from the gasification process, generating high quality and cost-competitive carbon dioxide removal (CDR) credits.
The multibillion-dollar project aims to start construction in the second half of 2026 and will generate hundreds of direct and indirect jobs in the catchment area of the plant. It will also support the local forestry industry by providing an outlet for biomass that was previously used in paper mills that have closed over time.
This investment will also be used to advance the rest of C2X’s portfolio comprising projects in Spain, Egypt, and other US locations.
ENEOS’ investment is accompanied by a strategic partnership with C2X, which considers methanol offtake and the application of SunGas’ gasification technology into its system portfolio.
Morgan Stanley acted as the exclusive financial advisor and placement agent to C2X on the capital raise.
