Iberdrola, Foresa set sights on e-methanol investment in Spain

Spanish utility group Iberdrola SA (BME:IBE) is joining forces with Foresa, a compatriot in the chemical sector, to explore an investment in green hydrogen for the production of e-methanol.

According to Iberdrola, the partners are analysing a proposal to build a 20-MW green hydrogen production plant, with room to expand it to 200 MW, and install a carbon capture system to obtain CO2 from biomass combustion streams.

The project would be set up in Spain’s northwest region of Galicia, co-located with Foresa’s factories. The Galicia-based Foresa manufactures formaldehyde, resins and additives for a number of applications, and would use the green methanol in its chemical processes and export the surplus.

The chemical company currently imports the methanol it needs for the production of glues and resins for wood, Iberdrola said.

In the first phase, the envisaged plant would produce 10,000 tonnes of e-methanol per year, which would rise to 100,000 tonnes per year.

The project is eligible to source funds from the Next Generation EU instrument and would require an initial investment estimated at over EUR 82 million (USD 99.9m), the utility added.

(EUR 1.0 = USD 1.218)

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