ENEOS has signed an investment agreement with C2X to advance the development of the Beaver Lake Renewable Energy (BLRE) project in Louisiana to FID

C2X Ltd. (C2X), a leading developer of green methanol projects, and ENEOS Corporation (ENEOS), Japan’s leading energy company, jointly announced a combined investment in C2X of $100 million from ENEOS and existing shareholders A.P. Møller Holding and A.P. Møller – Mærsk (Maersk). The transaction is subject to the satisfaction of customary closing conditions including applicable regulatory clearances.

The proceeds from the investment will primarily be used to fund the final development phase of the BLRE project which C2X is developing together with SunGas Renewables (SunGas) in Alexandria in the state of Louisiana. Once operational, BLRE will produce over 500,000 tonnes of green methanol per annum and is in discussions to secure long-term offtake from Maersk and other high-quality customers in the shipping, chemicals and industrial sectors.

The project will use SunGas’ industry leading S-1000 gasification system to convert biomass into low carbon methanol. The project will also capture and permanently sequester approximately 1 million tonnes per year of surplus biogenic CO2 from the gasification process, generating high quality and cost-competitive carbon dioxide removal (CDR) credits.

The multibillion-dollar project aims to start construction in second half of 2026 and will generate hundreds of direct and indirect jobs in the catchment area of the plant. It will also support the local forestry industry by providing an outlet for biomass that was previously used in paper mills that have closed over time.

This investment will also be used to advance the rest of C2X’s portfolio comprising projects in Spain, Egypt, and other US locations.

“We truly appreciate the continued support of our existing shareholders, and we welcome our new partner, ENEOS, as a significant shareholder in C2X. ENEOS will enable us to accelerate the journey to low carbon processes for multiple markets and industries. ENEOS’ market position, industry relationships and technological capabilities will add significant value to C2X’s portfolio. Our collaboration represents not only a strategic partnership but also a shared vision for a more sustainable future.” said Brian Davis, CEO of C2X.

“We are eager to partner with C2X, a pioneer in green fuels with extensive expertise in this field and a globally competitive portfolio. We have been impressed by the C2X team and its choice of SunGas’ leading gasification technology system to underpin the commercially competitive and economically attractive BLRE project. Together, this new strategic partnership will enhance ENEOS’ low carbon activities to develop a world scale business producing and marketing green molecules globally” said Satoru Otatsume, General Manager, Low Carbon Solutions Department ENEOS.

ENEOS’ investment is accompanied by a strategic partnership with C2X, which considers methanol offtake and the application of SunGas’ gasification technology into its system portfolio.

Morgan Stanley acted as exclusive financial advisor and placement agent to C2X on the capital raise.