E-Methanol

High-purity CO2 from carbon capture can be combined with green hydrogen via electrolysis to produce e-methanol. As a renewable alternative to fossil methanol, it offers full functional parity while enabling access to regulation-driven markets such as:

  • - Mandatory green fuel compliance for deep-sea shipping
  • - Power-to-liquid feedstock (e.g., e-kerosene for aviation)
  • - Low-carbon chemicals with RFNBO certification (e-olefins, e-plastics)
  • - IRA §45V clean hydrogen credit via on-site reforming
  • - Seasonal renewable energy storage and export ("liquid battery" concept)
  • - Carbon-negative power generation when co-fired with biomass + CSS
Carbon Recycling

1.37 t

CO2 permanently utilized per tonne e-methanol

94%

Net GHG reduction versus fossil methanol

19.4 Mt

Announced global e-methanol capacity by 2030

20% CAGR

Projected market growth 2025-2034

What is E-methanol?

E‑methanol is synthetic methanol produced by catalytic hydrogenation of captured CO₂ with green hydrogen (CO₂ + 3H₂ → CH₃OH + H₂O). Because both feedstocks are renewable, the resulting methanol is carbon‑neutral across its life‑cycle, offering an immediate route to decarbonize shipping, aviation, and the chemical sector.

Near-zero lifecycle emissions

Fossil methanol emits ≈2.1 t CO₂‑eq per t; e‑methanol cuts this by ≥94 %, comfortably exceeding the EU RED III 70 % savings threshold.

near-zero lifecycle emissions image
Regulatory Premium & Compliance image

Regulatory premium & compliance

E-methanol is classified as a Renewable Fuel of Non‑Biological Origin, and generates FuelEU Maritime credits, Low Carbon Fuel Standard (LCFS) credits, and qualifies for IRA §45V/§45Q tax incentives. Shipping majors such as Maersk have signed decade-scale supply deals for e-methanol that command premiums of roughly US $80–150 t⁻¹ over grey product, improving project IRRs and insulating producers from low-margin commodity cycles.

Stable cost base

OPEX is dominated by renewable electricity secured via long‑term PPAs, insulating producers from volatile natural‑gas prices that drive fossil methanol costs.

Green Energy
Cutting pollutants image

Superior air-quality profile with drop-in compatibility

E-methanol has the same density, flash point, and cetane index means existing methanol‑ready engines and storage tanks need no additional modification. Combusting methanol is inherently sulphur-free and cuts particulate matter and NOₓ up to 80 % versus heavy fuel oil; e-methanol provides the same operational benefits while eliminating upstream methane leakage. Existing methanol-ready engines and storage systems accept it without modification.

Category
Carbon Intensity
Feedstock Source
Sustainability
Energy Source
Greenhouse Gas Impact
Regulatory Incentives
Market Perception
Price Volatility
Infrastructure Use
Byproducts
Scalability
Fuel Standards Compliance
Corporate ESG Benefit
E-Methanol (Electro-Methanol)
Near-zero or negative CO2 emissions (if made with green hydrogen and captured CO2)
Renewable electricity + captured CO2
100% renewable and circular
Wind, solar, hydro (renewable power)
Carbon-neutral or negative (depends on capture source and electricity mix)
Eligible for green fuel subsidies, tax credits (e.g., EU RFNBO, U.S. 45V)
Green fuel—favorable for shipping, aviation, and climate-forward industries
Long-term stable (renewable + CO₂ capture tech scale)
Compatible with existing methanol infrastructure
Water, minimal impurities
Growing with renewable buildout and DAC/CCUS expansion
Meets future green fuel mandates (EU FuelEU Maritime, ICAO CORSIA)
Strong alignment with net-zero and sustainability goals
Traditional Methanol (Fossil-Derived)
High CO₂ emissions (from natural gas, coal, or refinery off-gas)
Fossil fuels (natural gas, coal, naphtha)
Finite resource, unsustainable in long term
Fossil fuel-based (high emissions from extraction and reforming)
Net positive CO₂ emissions
Increasingly penalized by carbon taxes and regulations
Viewed as pollutive—less favorable in ESG-compliant supply chains
Prone to fossil market volatility
Same infrastructure—no advantage over e-methanol
CO₂ emissions, sulfur, and other trace pollutants
Mature but declining due to climate pressure
Fails to meet zero-carbon fuel standards
Negative ESG impact, scope 3 emissions contribution

Contact Us

Looking to get more information?

Contact us at [email protected] or fill out the form below

Contact Us