Eneos, AP Møller and Mærsk to invest US$100 mn to advance US green methanol project

Japan’s energy company Eneos has signed an investment agreement with UK-based green methanol firm C2X to advance the development of the Beaver Lake Renewable Energy (BLRE) project in Louisiana, US, to FID and to further develop its global green methanol project portfolio.

The combined investment in C2X of US$100 million is from Eneos and existing shareholders AP Møller Holding and AP Møller-Mærsk (Maersk).

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 Inc in Alexandria, Louisiana.

Once operational, BLRE will produce over 500,000 tonnes/year of green methanol and is in discussions to secure long-term offtake from Maersk and other high-quality customers in the shipping, chemicals and industrial sectors.

The project will use SunGas’ S-1000 gasification system to convert biomass into low carbon methanol. The project will also capture and permanently sequester approximately 1 million tonnes/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 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.