Infrastructure investment firm White Summit Capital will invest 250 million euros ($267 million) in a green hydrogen (H₂) and methanol plant in Spain.

The investment aims to tap into demand from shippers for cleaner fuels to reduce their emissions amid limited supplies.

The plant will be in the port area of Gijon, in the northern region of Asturias, and will use green H₂ and carbon dioxide (CO₂) captured from nearby industries to produce e-methanol.

E-methanol is made using H₂ produced with renewable energy rather than fossil fuels—green H₂—and captured CO₂.

The investment will be made via White Summit's green H₂ subsidiary HyFive and is supported by European Union funds.

Starting from 2027, the plant will have 50 megawatts (MW) of electrolysis capacity to make green H₂, feeding the production of 100,000 metric tons (t) of green methanol every year. The firm has plans to then double its electrolysis capacity to 100 MW.

Green methanol is seen as an important contributor in decarbonizing industries that are hard to electrify, such as maritime transport.

With offices in locations including Switzerland, Spain and Britain, White Summit focuses on investments tied to the green transition. Its portfolio includes Spanish electric vehicle charger firm Zunder and Portuguese biomethane producer Ferbgas Renewable.

Earlier this year, it secured a €150-MM commitment from the European Investment Fund for an infrastructure fund focused on decarbonization.

($1 = €0.9349)

(Reporting by Pietro Lombardi;Editing by Aislinn Laing and Mark Potter)