Biogenic CO2 captured from its operational biomass plant in Puertollano will be used in an e-methanol facility that’s being developed in partnership with Dutch firm Power2X and ErasmoP2X.

Green hydrogen will be produced via electrolysis, powered by ErasmoP2X’s 1GW solar complex in Saceruela.

The green hydrogen is expected to be transported around 60km through the Spanish Hydrogen Backbone network to the Puertollano plant.

“The project will strengthen Spain’s position as a European hub for green molecules, generate new economic opportunities and quality jobs in Castilla-La Mancha,” Magnon’s statement said.

It added, “[The project will] attract investment in energy innovation and in the hydrogen and renewable methanol value chains.”

Other hydrogen-based e-methanol production projects are being pursued in Spain.

Forestal del Atlántico’s Triskelion project in Galicia plans to start production in January 2028, having secured a €49m ($52m) grant from the EU Innovation Fund in 2023.

Beyond traditional methanol applications, e-methanol emits less CO2 than natural gas or diesel-based marine fuels and can already be used in commercially available dual-fuel engines.

With established global transport and storage infrastructure, it is emerging as a practical low-carbon alternative for shipping and industry.