In Spain, international electro-fuels developer ETFuels has announced that it has been awarded a EUR 15 million grant by the Spanish Government’s Institute for the Diversification and Saving of Energy (IDAE) for its 100,000 tonnes per annum green methanol project being developed in Castilla-la-Mancha.
The grant was awarded under the H2 Pioneros program from a pool of over 100 green hydrogen projects.
In Castilla-la-Mancha, ETFuels is developing a 100,000-tonne green e-methanol plant utilizing carbon dioxide (CO2) from a cement production plant, with a target production from 2029.
Unique business model
The ETFuels production model uses technically mature processes developed by established suppliers in a unique off-grid configuration. All components of this model – renewable power, electrolysis, and methanol synthesis – have been proven at scale for decades.
The differentiating factor is how ETFuels packages these technologies together and optimizes them without a grid connection.
Further, by operating the equipment within an island mode of off-grid renewable electricity generation, the time or regulatory risk associated with network interconnection is avoided, another key differentiator to conventional green hydrogen projects.
Tackle “España Vacía”
Once operational, the plant will deliver 60 full-time jobs and around 400 indirect jobs. This particular plant is in a region impacted by “España Vacía”, the depopulation of rural areas.
These green jobs will act as the ‘tip of the spear’ to further industrial growth and benefit local schools.
Under an exclusive CO2 source partnership with Cemex, the project will deliver over 250,000 tonnes of CO2 emission reductions, and is a first step towards the company’s goal of decarbonization of heavy industry, starting with global shipping.
