Spanish energy company Repsol has reached a FID on its Ecoplanta project to build a facility to convert non-recyclable municipal waste into sustainable methanol in Spain, the company announced on Wednesday.
The plant will be developed in collaboration with Enerkem, a Canadian company specialising in technology to produce low-carbon fuels and chemicals from waste in which Repsol has been an investor since 2022.
Located in El Morell, in northeastern Spain, the plant will divert around 400,000 tonnes per year (tpy) of non-recyclable municipal waste from landfills and incineration and apply regasification technology to produce around 240,000 tpy of methanol. It is expected to come on line in 2029.
Methanol is used as an input in the chemicals and construction sectors, among others, and in the production of biofuels. IRENA estimates that global methanol consumption could increase fivefold by 2050, driven primarily by growing demand for sustainable fuels in the maritime, automotive and aviation sectors.
“We are thrilled with the approval of Ecoplanta’s FID, which will play a key role in advancing our commitment to sustainability and circularity. Enerkem’s innovative technology will enable Ecoplanta to make a significant impact on efforts to increase waste recycling and decarbonise hard-to-abate sectors,” said Michel Chornet, CEO of Enerkem.
Repsol estimates it will invest more than EUR 800 million in Ecoplanta. The project will also receive funding from the EU Innovation Fund due to its potential to reduce greenhouse gas emissions. A European Commission study has estimated the facility could save the equivalent of 3.4 million tonnes of carbon dioxide emissions over 10 years.
Source: theenergyyear.com