Denmark-headed C2X Ltd, a leading developer of green methanol projects, and ENEOS Group, Japan’s leading energy company, have jointly announced a combined investment of US$100 million from ENEOS and existing shareholders A.P. Moller Holding and A.P. Moller – Maersk (Maersk) to advance a green methanol portfolio. The transaction is subject to the satisfaction of customary closing conditions, including applicable regulatory clearances.
According to a statement, the proceeds from the investment will primarily be used to fund the final development phase of the Beaver Lake Renewable Energy (BLRE) project, which C2X is developing in the United States (US) together with SunGas Renewables in Alexandria, Louisiana (LA).
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 high-quality customers in the shipping, chemicals, and industrial sectors.
Major CDR project
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 annum of surplus biogenic carbon dioxide (bioCO2) 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 previously used in paper mills that have closed over time.
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, said Brian Davis, CEO of C2X.
This investment will also be used to advance the rest of C2X’s portfolio, comprising projects in Spain, Egypt, and other US locations.
The ENEOS Group investment is accompanied by a strategic partnership with C2X, which considers methanol offtake and the application of SunGas’ gasification technology into its system portfolio.
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, said Satoru Otatsume, General Manager, Low Carbon Solution Department at ENEOS.
Morgan Stanley acted as exclusive financial advisor and placement agent to C2X on the capital raise.
