Japanese oil company ENEOS Corporation will provide $100m in funding to support the development of the Beaver Lake Renewable Energy project in Louisiana, led by Denmark-based green methanol company C2X. C2X is backed by majority owner AP Møller Holding and its subsidiary, the shipping group AP Møller – Mærsk.
Green methanol spans methanol produced from biomass (tagged bio-methanol) or that produced from green hydrogen, captured CO2 and renewable electricity – referred to as e-methanol.
The Beaver Lake project, under development by C2X and US technology developer SunGas Renewables, is currently in the front-end engineering design phase. If a final investment decision is taken, it could produce more than 500,000 tonnes of green methanol per year using biogenic carbon and renewable electricity.
The partners are in discussions with Mærsk to establish a long-term offtake agreement for the fuel.
C2X CEO Brian Davis said ENEOS brings “deep expertise in energy markets” and will support the company’s wider efforts to develop large-scale projects in key global locations.
One of the most promising applications for green methanol is in shipping, where it is gaining traction as a marine fuel due to its cleaner combustion and compatibility with existing infrastructure.
Beyond fuel use, green methanol can serve as an energy carrier for storing electricity from renewable sources and is also a feedstock for chemicals such as formaldehyde, acetic acid and plastics.
According to the International Renewable Energy Agency, global demand for green methanol could exceed 500 million tonnes per year by 2050.
However, production today remains constrained by high costs, energy intensity, and the need for efficient carbon capture technologies – challenges shared by many e-fuels.
