SunGas Renewables Inc. and C2X LLC have formed a strategic partnership and announced an investment by C2X in convertible preferred stock issued by SunGas.
SunGas and C2X aim to develop, own, and operate multiple green methanol production facilities in North America to increase the supply of sustainable fuels and advance global decarbonization of hard to abate industries, according to a news release.
SunGas, a spin-out of GTI Energy, provides process technology and equipment for enabling the production of renewable fuels. C2X is aiming to establish large-scale green methanol production for multiple industries around the globe. The partnership with C2X will enable SunGas to develop projects based on its technology in U.S. communities, and to sell its gasification equipment systems to customers who are building and operating renewable fuels production facilities around the world.
This investment will also support the continued development of SunGas’ Beaver Lake Renewable Energy (“BLRE”) green methanol project in Central Louisiana. BLRE, expected to be fully operational as early as 2028, aims to produce green methanol at a capacity of more than 400,000 tons per year. It is planned to be the first of several renewable fuels facilities to be developed, owned, and operated by C2X and SunGas across North America.
C2X is majority owned by A.P. Moller Holding with A.P. Moller – Maersk as minority owner.
“C2X’s significant leadership, project implementation, and financial capabilities, complemented by SunGas’ extensive experience in design, development, and operation of renewable energy projects, will enable large-scale production of reliable, affordable, and sustainable fuels and advance global decarbonization,” said Robert Rigdon, CEO of SunGas Renewables. “We are grateful for GTI Energy’s expertise in decarbonization technologies and their role in our initial growth and spin-out, which enabled a partnership that will help us better serve customers relying on SunGas’ renewable technologies, products, and services.”
“SunGas’ leading biomass gasification technology platform and their highly capable team offers the fastest and lowest cost way to scale up the supply of green methanol that is so urgently needed to enable the marine, aviation, and chemicals sectors to reduce their fossil carbon emissions. Furthermore, we hope that our investment will also enable SunGas to advance the sale of their technology to other customers looking to produce renewable molecules for hard-to-abate industries,” says Brian Davis, Chief Executive Officer at C2X.
“GTI Energy believes disruptive innovation in technology and collaborative partnerships are key for creating sustainable, accessible, and secure options to meet the energy needs of economies around the globe,” said Paula Gant, President and CEO of GTI Energy. “SunGas Renewables demonstrates the power of gathering deep expertise and a focused business model to leverage GTI Energy’s foundational U-GAS® technology to scale production of competitive low-carbon fuels that will positively impact communities, economies, and the environment.”
The pairing of C2X and SunGas’ skills and competencies will enable both companies to offer solutions for customers needing to source meaningful quantities of green fuels as well as technology and services for project development partners and owners.
