Methanol is a chemical compound with the formula of CH3OH. As per the International Union of Pure and Applied Chemistry (IUPAC) methanol is known as methyl alcohol. Majorly methanol is produced through conventional methods from methane present in natural gas known as grey methanol. This method of methanol production releases greenhouse gases in the environment. As per Methanol Institute Consultancy firm, methanol production leads to an estimated carbon footprint of around 110 gCO2 /MJ. China produces methanol from coal, which corresponds to an estimated carbon footprint of 300 gCO2 /MJ. Therefore, a need for reducing carbon emission from the environment was recognised.
In November, the European Commission has set its vision of reaching net zero by 2050. The move from traditional energy sources to renewable is being driven by rising worries over CO2 emissions and climate change. Different reaction pathways are under development in methanol production process to either reduce greenhouse gas emission or to completely eliminate them from the environment. This led to the formation of blue methanol and green methanol. If carbon dioxide formed during the steam methane reforming process of methanol production is captured and stored then, methanol produced is known as blue methanol or less carbon methanol.
There is also another method of producing low carbon methanol. It is through reaction green hydrogen and carbon dioxide obtained non-renewable sources. Methanex has a manufacturing unit in Canada for producing low carbon methanol. They use CO2 captured from neighbouring industrial facility and inject it into methanol synthesis loop. As per Methanex, a car running on low carbon methanol would emit 30% less CO2 per kilometre than car running on gasoline. On the other hand, if methanol is produced from renewable sources, then it is called as green methanol. Green methanol is also known as clean and renewable methanol.
Green Methanol is of two types, bio methanol and e-methanol. Bio methanol is produced from gasification of biomass such as agricultural, wood and forestry residue, municipal solid waste. As per “Carbon Footprint of Methanol” report published by Methanol Institute Consultancy firm, carbon foot print corresponding to methanol produced from wood was estimated to be 10-20g CO2/MJ depending on the type of wood. And if the fossil carbon content of municipal solid waste is between 0-50% then, carbon foot print of methanol produced from MSW was estimated to be 10-55g CO2 /MJ.
In 2022, Veolia launched largest project to produce biomethanol from pulp mill waste. Veolia and Metsä Fibre, part of Metsä Group (a leading producer of biochemicals and bioenergy, headquartered in Finland) signed an agreement to build a crude methanol refinery in Metsä Fibre’s Äänekoski biproduct mill, Finland. Under this agreement, the crude methanol in obtained in pulp production Äänekoski biproduct mill will be refined into commercial bioethanol. The refinery will be integrated into bioproduct mill process and will be owned and operated by Veolia.
E-Methanol is produced from green hydrogen and carbon dioxide obtained from renewable sources. The electricity used for electrolysis of water to produce hydrogen must from renewable sources such as solar, wind or water. There are several ongoing projects for e-methanol. Denmark based European Energy has ordered Siemens Energy (green technology provider of Germany) to provide proton exchange membrane electrolysers for producing green hydrogen as per the news released in 2022. European Energy will develop e-methanol production facility in Kassø, Denmark to supply e-methanol to shipping company Maersk. The project is expected to commercialise in second half of 2023.
Green Methanol is used as a feed stock for producing chemicals, materials, plastics, as a fuel in shipping, cooking, heating, electricity production and as a solvent.The need to decarbonise the industry, agriculture, transport and heating sectors will drive the green methanol market. As per Renewable Methanol report published by International Renewable Energy Agency, e-methanol is estimated to have a annual production of 250 Million Tons and bio methanol is estimated to have an annual production of 135 Million Tons by 2050. Green methanol production will enable sustainable circular energy transition in chemical, transport and other energy related sectors. The demand is also driven by the production of e-fuels. Green methanol is used either directly as a fuel or as a blend with gasoline. Around 57 million litres of bio methanol was blended with gasoline in UK in 2023.
China is a global leader in methanol manufacturing and consumption. In September 2022, the Ministry of Industry and Information Technology of China announced to accelerate the popularisation of methanol cars to explore green methanol cars model. China is expected to achieve its target of carbon neutrality by 2060 sooner by promoting the use of green methanol as a fuel. As green methanol is an efficient way to use energy and to remove carbon dioxide from air.
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