Methanol is essential for the chemical industry and represents an emerging fuel for a wide range of uses. Although largely produced from fossil fuels, it can also be made from sustainable, renewable-based energy sources. This outlook from the International Renewable Energy Agency (IRENA) and the Methanol Institute identifies challenges, offers policy recommendations and explores ways to produce renewable methanol at a reasonable cost.

MI organized the “Why Bio-methanol?” webinar on May 28 in collaboration with NextChem and Södra who spoke about their experiences with producing bio-methanol in Italy and Sweden. The webinar was well attended by participants from a wide array of industries such as oil & gas, petrochemical, shipping, automotive, and aviation. A number of government bodies and research institutions from different countries also participated in the webinar.

Both speakers highlighted how bio-methanol was recognized as a sustainable and clean fuel under the European Unions’ Renewable Energy Directive II (RED II). The EU RED II lists a number of sustainable feedstocks from which renewable fuels can be produced from to be considered as contributing to the EU’s targets to increase consumption of sustainable fuels. NextChem stressed the importance of bio-methanol production from waste as it ensured lower greenhouse gas emissions as compared to when waste was incinerated or disposed of at landfills. The company believes that the production of bio-methanol from waste is a more sustainable strategy for waste management, as the bio-methanol produced can be used as a clean fuel. Södra discussed bio-methanol the company produces from byproducts of the paper making process at paper pulp mills. Bio-methanol production allows the company to increase the value it derives from the forests it manages by ensuring byproducts are processed into higher valued products. Bio-methanol that is produced by Södra currently goes into biodiesel production, and they are optimistic of its ability as a fuel on its own.

The “Renewable Methanol: A Carbon-Neutral Fuel” webinar organized by the Methanol Institute took place on August 5, 2020. The webinar is organized with the support of presenting companies Clariant, Haldor Topsoe, bseEngineering, and Ørsted. The global transition towards climate mitigation and greater sustainability has inspired a concerted effort from government, business, and society to find viable solutions to lower greenhouse gas emissions to meet the Paris Climate Agreement.

This transition has led to renewable methanol gaining traction as a carbon-neutral solution for multiple industries. The benefits of renewable methanol are manifold. The production of renewable methanol relies on off-taking CO2 from industrial emitters which allows them to reduce their emissions while moving towards carbon-neutrality. Renewable methanol can then be utilized as a carbon-neutral fuel for multiple applications such as land and marine transport vessels to help them reach their own emission reduction goals.

The webinar shares the experiences of companies that are part of the renewable methanol value chain in various regulatory and commercial landscapes. The companies will also shed light on what they believe is the future of this sustainable solution as global industries move towards limiting their impact on their operating environments and reducing greenhouse gas emissions.