International Investment Fuels Billion-Euro Methanol Production Vision in Pärnu for a Sustainable Europe
Invest Estonia announces a groundbreaking venture by Power2X, a Dutch-based innovator in renewable energy, to channel more than a billion euros into constructing a state-of-the-art methanol production facility in Pärnu, Estonia. This initiative is set to redefine the industrial landscape of Pärnu, utilizing wind power and forestry by-products to fuel its operations.
Positioned in the strategic Niidu industrial zone, the proposed facility aims for an annual output of 500,000 tons of methanol, leveraging Estonia's abundant resources of sustainable biomass and the potential of green hydrogen produced from the nation's promising offshore wind projects.
Power2X, renowned for its pioneering hydrogen, ammonia, and methanol projects across Europe, enjoys robust financial backing from CPP Investments, which manages the Canada Pension Plan's global assets. Its portfolio boasts significant projects like the MadoquaPower2X green ammonia facility in Portugal and the ErasmoPower2X, a project combining solar power with green hydrogen production in Spain.
The Pärnu project is poised to generate substantial employment opportunities, offering over 2,000 jobs in construction and more than 200 roles in operations and supply chains, marking a significant economic milestone for the region.
Embracing Green Innovations
The focus on using locally sourced, sustainable biomass and forestry residuals aligns with the growing demand for green fuels in Europe. With the continent's green fuel market anticipated to expand significantly, reaching an estimated 15.26 million tons by 2032, the Pärnu methanol plant is well-positioned to contribute meaningfully to this burgeoning sector.
Peter Daemen, Power2X's project executive, highlighted the project's potential to position Pärnu and Estonia as leaders in green industry and energy transition in Europe. "We're at an exciting phase, moving forward with feasibility studies and permitting processes, aiming for production commencement in 2028," he noted.
Pärnu Mayor Romek Kosenkranius expressed optimism about the project's ability to harness local offshore wind and biomass resources. He envisaged the integration of Pärnu County's future logistics advancements, including the Rail Baltica freight station, with the region's industrial heritage, enhancing Pärnu's economic and environmental landscape.