Magnon Green Energy, a renewable energy company under the Ence Group, has signed an agreement with Power2X and ErasmoPower2X to explore the development of an e-methanol production facility at Magnon’s industrial complex in Puertollano, located in Ciudad Real, Spain.

The project aims to capture approximately 380,000 metric tons of biogenic carbon dioxide annually—an amount equivalent to the CO2 absorption of roughly 15 million trees. This captured CO2 will be used to produce around 200,000 metric tons of synthetic methanol each year. The non-fossil-based methanol will help decarbonize sectors that are difficult to electrify, including aviation, shipping and chemicals.

During the initial phase, the companies will conduct a comprehensive feasibility study focusing on carbon capture and e-methanol synthesis. Magnon will oversee the integration of carbon capture technology into its existing biomass plant, while Power2X and ErasmoPower2X will manage the integration of renewable hydrogen, a critical input for e-methanol production.

The study will also evaluate the possibility of producing green hydrogen on-site at Magnon’s facility. Additionally, it will assess the potential to supply renewable hydrogen via the hydrogen backbone from ErasmoPower2X’s facilities in Saceruela, also in Ciudad Real.

This initiative is positioned to become a cornerstone in Spain’s renewable fuel development strategy. It is expected to boost economic growth and generate high-quality employment in Castilla-La Mancha, while also fostering investment in emerging green molecule supply chains.

Guillermo Negro, CEO of Magnon Green Energy, emphasized the company’s commitment to sustainability and energy independence: “As the leading biomass company and largest biogenic CO2 producer in Spain, we are proud to contribute to the energy independence of Spain and Europe. We greatly value our collaboration with Power2X and ErasmoPower2X in developing renewable fuel production in Castilla-La Mancha.”

Niels van Buuren, executive vice president of business development at Power2X, said the project represents the integration of advanced technologies into existing infrastructure: “This initiative demonstrates how Power2X is combining new technologies with industrial processes to produce green hydrogen and e-methanol. These fuels will play a key role in decarbonizing Spanish industries, including steel, automotive, refineries and aviation.”

Bas Dekker, founder and CEO of ErasmoPower2X, also praised the regional impact of the project: “This agreement highlights the significant opportunity created in Spain, and especially in Castilla-La Mancha, where the energy transition is driving investment in new industries, infrastructure and job creation.”

The partnership reflects a growing commitment to renewable energy solutions and Spain’s broader energy transition goals.