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Capwatt selects Sumitomo SHI FW as Gasification Technology Partner for the pioneering Mangualde Renewable Methanol project

Sumitomo SHI FW (SFW) has signed an agreement with Capwatt to provide Front-End Engineering Design (FEED) services for a state-of-the-art syngas production plant, integral to the groundbreaking Mangualde Renewable Methanol project in Portugal.

This initiative aims to build a cutting-edge biorefinery capable of producing 80,000 tons of renewable methanol annually, utilizing locally sourced biomass residues and renewable electricity from a nearby photovoltaic (PV) solar park.

The core of the plant will feature an advanced SFW gasification unit, designed to transform the carbon in biogenic residues into syngas. This syngas will then be combined with green hydrogen from electrolysis in the methanol synthesis process.

Renewable methanol, a versatile platform chemical, is set to become a cornerstone of future carbon management solutions for both the transport and chemical industries. Its applications are vast, from serving as sustainable shipping fuel to being converted into sustainable aviation fuel, plastics, and other essential chemicals.

As global Net Zero targets drive the demand for renewable methanol, production needs to surge from zero today to an estimated 400 million tons per year by 2050.

  • We are thrilled by Capwatt’s confidence in our gasification technology, a testament to over 40 years of dedicated development. SFW has proven this technology in biomass-to-liquids applications, and we eagerly anticipate supporting Capwatt in building the first industrial renewable methanol plant in Portugal, says Frank Ligthart, Vice President of Circular Carbon at SFW.
  • The commencement of the FEED marks a significant milestone towards our final investment decision. The Mangualde plant will produce enough renewable methanol to fuel two large container ships, highlighting the immense potential with 8 000 such ships globally. Capwatt's vision extends beyond this single project; we aim to establish a network of renewable methanol plants, says Jorge Matos, COO of Renewable Fuels at Capwatt.

SFW’s comprehensive scope includes the oxy-steam fluidized bed gasifier, syngas cooler, hot gas filter, tar reformer, and final syngas scrubber. The FEED is expected to be completed in 2024, with the project set to commence in Q2/2025. The plant is anticipated to begin renewable methanol production by the end of 2026, marking a significant leap forward in the quest for sustainable transportation fuels.


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About SFW

Sumitomo SHI FW (SFW) is a global provider of solutions and services that drive the decarbonization of energy. Our solutions include energy from biomass and waste, long duration energy storage, recycling of waste to valuable end products, carbon capture, flue gas cleaning, waste heat boilers, as well as related services to digitalize, optimize, and decarbonize assets that we deliver to the global power and industrial markets.

We strive to provide sustainable energy solutions for customers in a wide range of industries including energy, waste, chemicals, metal, sustainable fuels, cement and pulp and paper. SFW’s excellence in delivering projects worldwide rely on our 1,800 talented people, across 20 locations in 14 countries, with deep know-how and experience in the industry.

Powering a decarbonized world for everyone. For more information, please visit Sumitomo SHI FW at

About Capwatt


Capwatt is an innovative company that promotes integrated energy solutions, maximizing synergies between decentralized production, service delivery and energy trading, contributing to the sustainable energy paradigm. The company specializes in sustainable solutions to decarbonize energy consumption. Capwatt was founded in 2008 and is headquartered in Maia, Portugal.

It is present in Portugal, Spain, Italy and Mexico, has a broad portfolio of operational projects and is recognized as an independent energy producer.

Capwatt assumes responsibility for all activities inherent in the implementation of projects, from the development phase, licenses and investments, to the construction phase, asset management and operations. Its technological areas of operation are renewable fuels and energy solutions.

Sustainability is in our DNA. We assume the daily commitment to take care of the environment and contribute to the improvement of the communities in which we operate.