Spanish energy company Cepsa has signed an agreement with Evos, a liquid energy and chemical storage company with hubs across Europe, to store green methanol produced by Cepsa at Evos’ storage facilities in Algeciras, Spain and Rotterdam.
The agreement also provides for the storage of green ammonia at Evos’ facilities in Algeciras and facilitates the logistics for transporting green hydrogen products between ports in Spain and the Netherlands. The two companies will also study logistics for transporting to other Evos terminals in Northwest Europe, including Amsterdam.
Cepsa, along with partners, is developing the Andalusian Green Hydrogen Valley, which will entail two green hydrogen plants with a total capacity of 2 GW, a green methanol plant that aims to reach an estimated annual production capacity of 300,000 tons, and a green ammonia plant with an annual production capacity of up to 750,000 tons. In addition, Cepsa, in a joint venture with Bio-Oils, has started building a second-generation biofuels plant in Huelva, Spain. When finished, it will have the capacity to flexibly produce 500,000 tons of sustainable aviation fuel and renewable diesel annually.
The storage and handling of SAF will see further expansion in the coming years said Evos in a press release. Collaborating with partners, Evos aims to create an integrated terminal concept with nearby green fuels production facilities to enhance carbon reductions and augment the energy transition.
Green methanol is made by using green hydrogen and non-fossil sources of carbon captured from the atmosphere or from agricultural and forestry waste and can replace fossil methanol, reducing carbon emissions in hard-to-abate industries such as long-distance shipping and other industries such as chemicals and plastics.
By 2050 the demand for methanol could triple to some 300 million tons per annum, with the majority being for green methanol.