Low carbon
intensity methanol
What is low carbon intensity (LCI) methanol?
The majority of methanol today is made from natural gas. Low carbon intensity methanol is an alternative production route which generates lower carbon emissions throughout the manufacturing process. In addition, methanol can be used as a net zero fuel when using non-fossil based feedstock. LCI methanol includes:
- Bio-methanol: Produced from biomass
- Green e-methanol: CO2 captured from renewable sources (e.g. via BECCS or DAC) and green hydrogen (hydrogen produced with renewable electricity)
How can etasca help?
The etasca team has extensive commercial and technical experience across the methanol value chain – covering all major production routes as well as end-markets.
Interested? contactus@etasca.com
million tons
Estimated global
methanol demand
million tons
Estimated annual CO2 emissions
from methanol production(1)
Commercial considerations:
- It is more economical to transport and store than some other alternative energy carriers (e.g., LNG, hydrogen).
Methanol’s main application is to produce chemical derivatives (approx. 70% of demand), with the second largest application being a fuel additive followed by gasoline blending.
- Methanol’s high-octane rating means it can be used as an additive or substitute for gasoline in internal combustion engines (ICEs).
- Methanol is a chemical precursor to formaldehyde, acetic acid and MTBE.
Whether from fossil fuels or renewable sources, methanol has the same chemical structure.
- Therefore, low carbon intensity methanol has the potential to replace fossil fuel derived methanol in any of its current uses, e.g., chemical feedstock, fuel or other energy carrier roles.
Methanol used as an automotive fuel can be dispensed in regular filling stations, requiring only limited modifications.
- However, methanol has only about half the volumetric energy density of gasoline and diesel – therefore if pure methanol is used as a fuel, adjustments to vehicle tank sizes are needed.
The shipping industry is pursuing methanol as a fuel as part of its decarbonisation strategy by 2050.
- The International Maritime Organisation (IMO) has committed to zero emissions by 2050. Adoption of green methanol would enable liquid fuels to continue to be utilised in this hard-to-electrify sector.
- Shipping-giant Maersk is already deploying large methanol-fuelled vessels in anticipation of this.
Technical considerations:
Renewable methanol can be produced using renewable energy and renewable feedstocks via two primary routes:
- Bio-methanol: Produced from biomass (municipal, forestry and agricultural waste) and biogas.
- E-methanol: Power-to-X technology – hydrogen is produced from electrolysers powered by renewable energy and CO2 generated from renewable sources.
Bio-methanol and e-methanol production routes do not require novel technologies and follow widely commercialised processes which produce methanol from fossil fuel-based syngas.
- Although bio-methanol plants have already been commercialised they represent less than 1% of all methanol capacity.
The main challenge for low carbon intensity methanol is the higher cost of production versus conventional fossil fuel-based routes.
- Biomethanol is lower cost to produce than e-methanol by a considerable margin, but production costs can still exceed fossil-fuel based routes by several hundred $/ton and in some cases exceed the market price for methanol.
By using methanol-to-olefins (MTO) and subsequent oligomerisation processes, methanol can also be an intermediate to liquid fuels.
- However, the large number of steps (with associated capex) and the lack of selectivity for a single product (e.g., gasoline or jet) present commercial operational challenges.
1. Source: IRENA