Power2X announces plans for green methanol project in Pärnu, Estonia

Power2X, a project developer based in The Netherlands specializing in the energy transition, is in the planning phase of a green methanol project which would see investment of more than 1 billion euro in Estonia. The envisioned facility, situated in the industrial area of Niidu in Pärnu, Estonia, aims to produce up to 500,000 tons per year of green methanol once fully developed. The production will be based on locally sourced sustainable forestry outputs and flexible green hydrogen, powered by Estonia’s emerging offshore wind developments.

This strategic investment aims to support the creation of a flexible hydrogen economy that can absorb the intermittency of offshore wind power production, that will empower offshore wind expansion and enhance regional energy security. The produced green methanol could decarbonize chemical materials production, aviation fuels, Estonian ferry lines and shipping and other hard to decarbonize industries, domestically or abroad with the potential to save 1 million tonnes of CO2 per year.

The project intends to use world scale advanced gasification and methanol synthesis technology, and has ensuring safety and reliability as core values. As a primary input, the facility will take sustainably harvested biomass and residual forestry streams from Estonia, aligning with Power2X’s strong commitment to sustainability and decarbonization of the Energy & Materials industries. A significant portion of this biomass is currently exported as pulp logs, pellets and wood chips with limited economic value-add in Estonia.

During development, construction and long term operations, the project is expected to contribute to a significant GDP increase for Estonia, creating more than 2000 jobs during construction and over 200 long term stable supply chain and operations jobs locally.

The project, now in Feasibility stage and progressing through permitting, is seeking to secure sufficient biomass volumes. With operations targeted to commence in 2028, the project could assume a pivotal role in the European transition towards more sustainable feedstocks and energy sources for the chemicals sector and to decarbonise aviation and shipping. Power2X acknowledges the crucial role these industries play in the energy transition for Estonia as well as the EU and aims to significantly contribute to their decarbonization.

Peter Daemen, Project Executive: “This is a unique opportunity to establish a leading green methanol facility in Europe and to propel Pärnu and Estonia into a hub for sustainable industries, contributing significantly to the national energy transition. We take pride in our role alongside local stakeholders, to drive a significant leap towards a greener future”

Romek Kosenkranius, Mayor of Pärnu: “Due to the potential of offshore wind farms and biomass recovery, completely new development opportunities have opened up for the city of Pärnu in the field of green energy, which is very welcome. According to the plan offered by Power2X, future new logistics opportunities in Pärnu County, including the Rail Baltica freight station, will be combined with our traditions in optimizing the industry. Modern green fuel production has several positive effects on the economic development of the region and the whole of Estonia and confirms the importance of larger volumes of renewable electricity”