'Europe's largest' | Solar developer plans giant 800MW green hydrogen-to-methanol plant

Ansasol aims to generate one million metric tonnes of renewable methanol by 2029. A joint venture between German and Spanish solar and renewable hydrogen developers has disclosed plans to construct a substantial 800MW green hydrogen-to-methanol facility in southern Spain, slated to produce one million metric tonnes of green methanol annually by 2029. Initially, Ansasol plans for the first phase of the MetGreenPort plant, situated in the Port of Huelva, to produce 150,000 metric tonnes of green methanol from renewable hydrogen, along with carbon dioxide sourced from nearby industries, by 2027.

Subsequently, Ansasol intends to expand the MetGreenPort facility by more than sixfold within two years, scaling it up to produce one million metric tonnes by 2029, with a total electrolysis capacity of 800MW, positioning it as the largest green methanol project in Europe. The renewable hydrogen necessary for methanol production at the plant will be generated onsite, with an estimated electrolyser capacity of approximately 120MW for the initial phase. However, the company has not disclosed the construction costs for either phase of the plant, nor has it clarified the funding sources or the intended methanol market. Ansasol had not responded to inquiries from Hydrogen Insight at the time of publication. Additionally, it remains uncertain whether the carbon source required for methanol production from green hydrogen will be biogenic, which impacts the eligibility of the green methanol produced at the plant for European Union subsidies as a renewable fuel of non-biological origin (RFNBO).

Ansasol's primary focus lies in developing solar photovoltaic projects in Germany and Spain, complemented by its green hydrogen business unit, Hydron, which is actively developing approximately 900MW of renewable hydrogen capacity across 24 projects. The company secured the right in February to construct the plant on a 100,000-square-meter plot in the Port of Huelva in Andalusia, following a competitive selection process.

Ansasol and its subsidiary Sunna Solar are responsible for the plant's development, marking the second major green methanol project announcement for the Port of Huelva in the past six months. Last year, Spanish oil giant Cepsa and Danish developer C2X unveiled plans for a €1 billion ($1.07 billion) green methanol plant in Huelva, with an annual production capacity of 300,000 metric tonnes, with a final investment decision scheduled for 2025. Additionally, Danish wind developer Orsted is currently constructing Europe's largest green methanol plant, FlagshipONE, in Sweden, with an annual production capacity of 50,000 metric tonnes, supported by funds from the Bill Gates-backed venture fund Breakthrough Energy Catalyst, which acquired a 15% equity stake in the facility last year.

Methanol serves as a foundational chemical in numerous processes and products, with increasing attention directed towards its potential as a fuel, particularly within the shipping industry.