What does a leading building materials multinational like CEMEX have in common with ETFuels, a green fuels producer with a disruptive decarbonization model that aims to provide Europe with a pathway to energy security by reducing its dependence on fossil fuels? The answer is simple: both companies have an overarching mission to transition to renewable energy resources in an effort to decarbonize industry and make a positive impact in the regions in which they operate.
However, this mission is altogether much more difficult to put into practice. That’s why CEMEX, through CEMEX Ventures, and ETFuels are joining forces and demonstrating how much more innovation can be achieved through collaboration than separately. Under this groundbreaking carbon utilization agreement, CEMEX will provide up to 450,000 metric tons of captured CO2 annually that will be combined with green hydrogen by ETFuels to produce green fuels.
We’re breaking down our latest partnership and bringing you all the details about our agreement with ETFuels! Keep reading to learn more.
Let’s take a deeper dive!
Deep Dive: ETFuels x CEMEX Ventures
How – will ETFuels and CEMEX help each other achieve their objectives?
CEMEX will help ETFuels by supplying an industrial scale amount of carbon dioxide (up to 450,000 tons per year), which will be combined with clean hydrogen at an off-site plant to produce up to 300,000 tons of sustainable fuels in the form of green methanol (e-methanol). A priori, CEMEX will be ETFuels only provider of CO2, and thus, is a crucial stakeholder in ETFuels’ value chain and end product. Moreover, because of CEMEX’s global presence and broad network, the building materials company helps ETFuels achieve their mission of targeting multiple geographies at scale, while increasing energy security and reducing the dependency of fossil fuels in the European region.
With its captured carbon emissions, CEMEX will provide ETFuels with one of the key raw materials of green methanol that is expected to power the shipping industry, further reducing overall carbon emissions in the global supply chain and transforming how energy is produced and distributed at an unprecedented industrial scale.
On the other hand, as CEMEX seeks to decarbonize its operations and provide sustainable solutions to its customers, they look to use the proprietary technology of ETFuels to:
- Capture CO2 from its cement production operations, and
- Foster the replacement of fossil fuels with alternative clean fuels.
This carbon utilization project, groundbreaking in its scope and potential, demonstrates significant progress in testing and scaling technologies that are designed to contribute to accelerating decarbonization efforts in the cement production process.
Why – invest in ETFuels?
CEMEX’s partnership with ETFuels is aligned to its Future in Action program, which is CEMEX’s campaign to achieve sustainable excellence through climate action, circularity, and natural resource management with the primary objective of becoming a net-zero CO2 company. CCUS technology is part of the roadmap to achieving Future in Action’s 2030 and 2050 goals, and CEMEX Ventures is dedicated to investing in and partnering with startups that will help CEMEX accomplish its sustainability objectives.
Together, CEMEX, CEMEX Ventures, and ETFuels are committing to the circular economy through this carbon utilization initiative that is part of a larger portfolio of CCUS projects that include permanent storage or use of CO2 from biogenic sources.
What – is this agreement about?
ETFuels is a green fuels producer with a disruptive decarbonization model that aims to provide Europe with a pathway to energy security by reducing its dependence on fossil fuels. Simply put, ETFuels will use up to 450,000 metric tons of CEMEX’s carbon emissions together with green hydrogen to synthesize 300,000 tons of green methanol (e-methanol) for use in the shipping industry.
Their mission is two-fold: to make decarbonization commercially viable through the alignment of interests and to unlock the potential of renewables by going off-grid. What does this mean? First, ETFuels seeks to disrupt traditional industry supply chains and align commercial interests around climate neutrality, finding mutually beneficial solutions across the decarbonization value chain (e.g., buying carbon emissions from CEMEX’s cement plant). Second, ETFuels maintains that renewable energy resources are the backbone of a successful energy transition and that their “off-the grid” model that produces fuels anywhere, at scale, and at the lowest cost is the key to this transition.
But let’s dive just a little bit deeper…
Where – is the project taking place?
CEMEX’s first full-scale pilot with ETFuels will take place in CEMEX’s Alicante (Spain) cement plant. This is due to many different factors related to its location, CO2 output, and ETFuel’s end-users. ETFuels will synthesize the production of green methanol in a nearby plant, thereby bringing several potential benefits for the region including job creation and increased private investment. The long-term objective is to expand this agreement to other CEMEX operations in the broader EMEA and North America regions where there is the potential to leverage additional benefits. Thanks to ETFuels’ off-grid model of green fuel production at hyperscale, the startup can set up deep decarbonization projects in a variety of different locations.
Who – is ETFuels?
ETFuels team is based in Dublin, Ireland, but as we always say, geography is no limit to innovation. The startup combines its technical and commercial expertise to create value across the hydrogen value chain (captured carbon dioxide + clean hydrogen = eMethanol). Here is ETFuels’ founding team working in close collaboration with CEMEX:
From the side of CEMEX Ventures, Alfredo Carrato, Investment and Open Innovation Advisor at CEMEX Ventures, has led the investment and relationship with ETFuels. Alfredo is a trained Architect and college professor who scouts for breakthrough technologies and solutions in the decarbonization space for the construction industry. He oversees investment activities and strategic partnerships at CEMEX Ventures, placing a special focus on startups that effectively tackle the carbon footprint challenge of the built sector. Alfredo is CEMEX Ventures’ resident expert in all subtopics related to its Green Construction focus area (e.g., Carbon Capture, Utilization, and Storage; circular economy; alternative energy sources: electrification, hydrogen, etc.).
When – will carbon utilization begin?
So, when will CEMEX and ETFuels start carbon utilization? As we all know, good things take time – but not too much time! ETFuels and CEMEX signed a Memorandum of Understanding (MoU) earlier this year and CEMEX is currently evaluating several strategies and partners to perform CO2 capture for this project.
CEMEX Ventures doesn’t just invest; it is also the vehicle for bringing innovation and new solutions to CEMEX through agreements such as this one. Whether you’re a startup, investor, built professional, journalist, or working for a small or medium sized company or corporation, we encourage you to contact us through our website or follow us on LinkedIn and Twitter.
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