An Ireland-based startup is blazing a trail for the large-scale production of “green” methanol. The company has received a capital injection from SWEN Capital’s SWIFT 2 fund that will allow it to boost its quest to provide sustainably produced fuel to the shipping industry and other markets. “Green” methanol uses renewable energy sources, ensuring no harmful gases are emitted into the atmosphere. Additionally, “green” methanol is in demand in the maritime, pharmaceuticals and painting and coatings industries.
Now, ETFuels is on a mission, saying that the world needs more sustainable projects, now more than ever. The startup is currently taking pre-orders of “green” methanol.
ETFuels’s unique production model
Globally, shipping companies are looking at ways to become more sustainable. The need for conducting shipping activities in the environmentally-friendly option has recently been taken on by companies such as Hapag-Lloyd with its first ultra-large LNG fuelled vessel. In August 2023, the world’s first “green” methanol-fueled container set sail from South Korea to Denmark.
Founded in 2022, ETFuels’ unique production model combines large renewable energy farms with “green” fuel production facilities and allows the company to produce “green” fuels sustainably for shipping customers. ETFuels says this model delivers a 91% reduction in emissions compared to heavy fuel oil.
The company produces this “green” fuel by using water, renewable electricity and CO2. “We generate our renewable energy and use this to split water into “green” hydrogen and oxygen in an electrolyzer. This hydrogen is then combined with CO2 from a third-party source in a methanol synthesis facility to produce methanol. The methanol is liquid at room temperature, and can be stored and transported to the customer at the nearest port,” the company says.
ETFuels’s CEO Lara Naqushbandi says with the costs of carbon capture, renewables and electrolyzers continuing to fall, ETFuels will play a crucial role in decarbonizing shipping. “To enable our vision of energy transition at hyper scale we are delighted to have SWIFT 2 join our existing investor base. SWIFT 2 has demonstrated a pioneering focus on investing in “green” molecule opportunities since 2019 and we value the trust they have shown in our team,” she says.
To drive its European Union and US operations, ETFuels has made some key appointments like former E.ON CEO Patrick Woodson and former E.ON chairman Paulo Amante.
SWEN Capital Partners gets in on going green
The French-based asset management firm sees itself as a responsible ecosystem activator in the private equity space. The company offers investment programs to a variety of clients. SWEN Capital Partners has EUR 6.7 billion under management.
Climate and environmental sustainable goals have been at the forefront of what the company does when offering clients investment solutions.
About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
