A representative from the Pärnu City Government stated that Power2X has confirmed they are actively working on the establishment of the factory.

"The supply chain for the raw materials is being clarified, including participation in the State Forest Management Center's (RMK) sustainability contract tender, logistics for product distribution within Estonia, precise market demand analysis, comparative analysis of technologies, negotiations for green electricity procurement and preparations for an e-fuels conference in Pärnu," said Pärnu City Government media advisor Teet Roosaar.

Power2X announced in March that it plans to invest €1 billion to build a methanol plant in the Niidu industrial area in Pärnu, with an annual production capacity of 500,000 tons.

However, questions have arisen regarding the demand for methanol following the recent decision by Ørsted, a Danish renewable energy company majority-owned by the state, to abandon its project to build a methanol plant in Sweden due to low demand. Ørsted's plans were ten times smaller than those of Power2X, with an annual production target of up to 55,000 tons of green methanol.

This has not affected the Dutch company's plans. "According to the company's representative, there has been no doubt about moving forward with the plans," Roosaar said.

The planning and environmental impact assessment for the future production site were initiated in March of this year.

Due to the significant investment, changes will also need to be made to Pärnu's new comprehensive plan to account for the factory's impacts, Roosaar noted.

ERR has also reached out to Power2X for further information.

According to the company's plans, the Pärnu factory will produce 500,000 tons of green methanol annually. "Green" means that the methanol will be produced from sustainable forestry by-products and green hydrogen, which will be generated using electricity from offshore wind farms to be built off the western coast of Estonia, the company has stated.

The factory is expected to create jobs for 200 people both in the supply chain and locally. Production is scheduled to begin in 2028.

Methanol is used as a fuel, solvent and antifreeze.

Power2X, according to the company, develops large-scale industrial projects focusing on hydrogen, ammonia and methanol, and has a diversified project portfolio across Europe. Power2X's activities are financially supported by CPP Investments, a global investment firm that manages capital for the Canada Pension Plan (CPP).

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