Spanish firm Catalyxx has announced plans to construct a commercial-scale plant in Sines, Portugal, to produce renewable butanol, hexanol and octanol using bioethanol as feedstock. Representing a total investment of €120 million, the facility is designed for an annual output of 15,000 tonnes of bio-based alcohols, with construction scheduled to kick off in the fourth quarter of 2026.

Led by Catalyxx, the RenewChem industrial alliance aims to break ground on the 15,000-tonne bio-based chemicals facility in Q4 2026.

The product portfolio serves as a direct alternative to fossil-based chemical intermediates deployed across the chemical and plastics sectors. Catalyxx estimates that the production cost of bio-based butanol stands roughly 13.6% lower than its petrochemical-based counterpart.

The Spanish developer states that its demonstration plant in Seville has validated its proprietary catalytic technology under continuous operating conditions. “The Sines plant will be built directly upon these proven technical outcomes.”

Strong Support from Public and Private Capital

The project is developed by the RenewChem alliance led by Catalyxx. Its members include Portuguese subsidiary Catalyxx Ibérica, Arkema, Evonik and Magfi.

Construction financing combines private investment and public funding, with backers consisting of the European Investment Bank (EIB), the European Innovation Council (EIC) and investment firm Beka.

The most recent funding injection comes from the Circular Bio-based Europe Joint Undertaking (CBE JU), which has designated the initiative a flagship project and awarded a €20 million grant to accelerate the industrial rollout of bio-based chemical technologies across Europe.

Diversified Feedstock Supply as Core Competitive Edge

Catalyxx claims the Sines plant will host Europe’s first commercial facility manufacturing renewable higher alcohols from bioethanol. The process converts ethanol into butanol, hexanol and octanol. The molecules match those derived from petrochemical routes exactly, enabling seamless integration into existing industrial infrastructure, end-use applications and supply chains.

These chemical intermediates find broad application in coatings, adhesives, resins, lubricants, surfactants, home and personal care products, and can also be formulated into sustainable fuels.

The plant will consume approximately 22,400 tonnes of bioethanol annually. According to Catalyxx, ethanol is readily available and locally producible, with feedstock sources covering sugar crops, cereals, cellulosic biomass as well as carbon-converted ethanol.

Offtake Agreements Secured

Commercial offtake arrangements have been locked in for the project. Arkema has signed a five-year offtake agreement with an option to purchase up to the plant’s full output, alongside a further five-year renewal option. Mitsubishi and Covestro have also expressed procurement interest. Additionally, Catalyxx has licensed its relevant technology to India.

Catalyxx forecasts average annual revenue of approximately €30 million over the first five years post-commissioning, with long-term revenue potential rising to €70.8 million.

The plant’s annual output accounts for roughly 1.7% of current European butanol demand. Catalyxx positions the Portuguese facility as its first commercial base for global expansion, with plans to replicate the technology in Brazil and the United States in subsequent phases.

Driving Industrial Decarbonisation

Catalyxx’s calculations indicate the Sines plant will cut carbon dioxide emissions by around 105,000 tonnes per year, delivering vital support for decarbonisation within the chemical industry, which remains heavily reliant on fossil feedstocks.

From a broader perspective, widespread adoption of this technology across Europe’s butanol production capacity could deliver annual emission reductions exceeding 3 million tonnes, while strengthening the security of supply for critical European chemical intermediate chains.

Joaquín Alarcón, CEO of Catalyxx, commented: “Against the current geopolitical and industrial backdrop, securing supply chain resilience and greater strategic autonomy for Europe’s vital chemical industry is growing increasingly critical. We believe Catalyxx is poised to play a pivotal role in this industrial transition.”

Special Project Status Accelerates Administrative Approval

The Portuguese government has granted the initiative National Strategic Project status, significantly streamlining regulatory approval procedures. The company confirmed key environmental permits have been obtained, front-end engineering design orders have been issued, and the project is advancing steadily toward construction.

Alarcón added: “This project will not only accelerate the shift away from fossil feedstocks in chemicals manufacturing, but also help Portugal secure a position among Europe’s front runners in sustainable industrial innovation.”

Catalyxx anticipates the full value chain will generate more than 650 high-skilled jobs and deliver approximately €12.8 million in annual tax contributions.