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Production Processes

Green Hydrogen Production

Sustainable methanol production requires the input of pure hydrogen (H₂), which can be extracted from water in a few different ways. Currently, there are three main modes of producing pure hydrogen, known as Green, Blue, and Gray Hydrogen.[1]Marchant, Natalie. “Grey, Blue, Green – the Many Colours of Hydrogen Explained | World Economic Forum.” Accessed November 20, 2021. … Continue reading Gray hydrogen refers to the extraction of hydrogen from carbon intensive sources such as natural gas through a process known as steam reforming.[2]“Steam Methane Reforming — Productions — Student Energy.” Accessed November 20, 2021. https://studentenergy.org/production/steam-methane-reforming/. Blue hydrogen uses this same process; however, it is considered more sustainable as 80-90% of carbon released during production is recaptured and stored underground.[3]Marchant, Natalie. “Grey, Blue, Green – the Many Colours of Hydrogen Explained | World Economic Forum.” Accessed November 20, 2021. … Continue reading Green hydrogen involves the splitting of water molecules through electrolysis. This process is unique as it is the only truly carbon neutral method of hydrogen extraction because electrolysis is powered by renewable energy sources such as solar panels and wind  turbines.[4]Fan, Zhiyuan, et al. “Columbia | SIPA Center on Global Energy Policy | Green Hydrogen in a Circular Carbon Economy: Opportunities and Limits.” Accessed November 20, 2021. … Continue reading

Converting Hydrogen to Methanol

The process of producing methanol (CH₃OH) from hydrogen requires the input of both pure hydrogen from electrolysis and carbon dioxide gas (CO2). Carbon dioxide utilized in this process must be captured from the flue gas of other generators.[5]Galindo Cifre, P., and O. Badr. “Renewable Hydrogen Utilisation for the Production of Methanol.” Energy Conversion and Management 48, no. 2 (February 2007): 519–27. … Continue reading Once attained, the two inputs are heated and pressurized in a series of reactors with a catalyst to form methanol and attain the usable liquid state.[6]Borasut, Prapatsorn and Aroonsri Nuchitprasittichai. “Frontiers | Methanol Production via CO2 Hydrogenation: Sensitivity Analysis and Simulation—Based Optimization | Energy Research.” Accessed … Continue reading The methanol produced in this manner requires no further purification and can then be used in methanol combustion engines. Unlike other methods of methanol production such as from biofuels or natural gas, this process of using carbon dioxide from flue gas and green hydrogen creates carbon neutral methanol. 

Figure 1: Methanol Production Process. Image from: Cifre and Badr[7]Galindo Cifre, P., and O. Badr. “Renewable Hydrogen Utilisation for the Production of Methanol.” Energy Conversion and Management 48, no. 2 (February 2007): 519–27. … Continue reading

Cost of Production

Current estimates for the cost of green methanol vary widely. A 2021 American Bureau of Shipping report estimated that green methanol cost about $643 per tonne, while a 2021 report from the International Renewable Energy Agency and the Methanol Institute estimated a cost range of about $800-$2400 per tonne depending on the source of the carbon use to produce the methanol.[8]Martin, Abigail. 2021. “A Step Forward for ‘Green’ Methanol and Its Potential to Deliver Deep GHG Reductions in Maritime Shipping  | International Council on Clean Transportation.” September … Continue reading[9]“Innovation Outlook: Renewable Methanol.” 2021. International Renewable Energy Agency and the Methanol Institute. … Continue reading The increase in costs can be attributed to the costs of hydrogen production, the cost of carbon dioxide capture, and the transportation costs of the two substances. Green hydrogen currently costs about $3-6 per kilogram, but is expected to fall below $2 per kilogram by 2030 as production increases, making it much more competitive with other types of hydrogen.[10]Weiss, Tessa. “Growing Gigawatts of Green Hydrogen – RMI.” Accessed November 20, 2021. https://rmi.org/growing-gigawatts-of-green-hydrogen/. Aside from government subsidies, increases in renewable electricity sources could decrease the cost of electrolysis and expedite this process. The cost of capturing carbon dioxide is much lower, and is expected to fall similarly to the cost of hydrogen.[11]Baylin-Stern, Adam and Niels Berghout. IEA. “Is Carbon Capture Too Expensive? – Analysis.” Accessed November 22, 2021. https://www.iea.org/commentaries/is-carbon-capture-too-expensive. With decreasing input costs, the cost of carbon neutral or “green” methanol will become more competitive with other forms of methanol. However, the concentration, transportation, and storage of methanol remain large economic barriers to further lowering the price of methanol. It is possible to relocate carbon dioxide capture plants to be near electrolysis plants which have much more limited potential locations. This would decrease transportation costs; however, it could increase the cost of carbon dioxide as entirely new infrastructure would need to be built.[12]Galindo Cifre, P., and O. Badr. “Renewable Hydrogen Utilisation for the Production of Methanol.” Energy Conversion and Management 48, no. 2 (February 2007): 519–27. … Continue reading In order for green methanol to become economically competitive with fossil fuels on its own, these transportation issues need to be further addressed.

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