World’s First Commercial-Scale e-Methanol Plant in Denmark

Current Context: On 15 May 2025, Denmark’s Green Fuel Technology inaugurated the world’s first commercial-scale e-methanol plant in Fredericia, marking a milestone in low-carbon fuel production for shipping and industry.

About e-Methanol:

• Definition: A carbon-neutral fuel produced by combining green hydrogen (from water electrolysis powered by renewables) with captured CO₂ (from flue gases or direct air capture).
• Production Steps:
  1. Green H₂ Generation: Water electrolysis using wind or solar power.
  2. CO₂ Capture: Sourced from industrial emissions or ambient air.
  3. Methanol Synthesis: Reacting H₂ and CO₂ in a catalytic reactor under pressure to form CH₃OH.
• Benefits:
  1. Infrastructure-compatible: Can use existing methanol distribution and engine systems.
  2. Stable & Storeable: Liquid at room temperature and pressure.
  3. Versatile Feedstock: Can be converted into DME, gasoline, kerosene.
• Applications:
  1. Shipping: As a marine fuel to reduce GHGs.
  2. Road & Air Transport: Via methanol-derived fuels.
• Challenges:
  1. Cost Premium: Higher than fossil methanol due to renewable electricity prices.
  2. Scale-up Needs: Further efficiency improvements required.

‘Methanol Economy’ Program in India (NITI Aayog):

• Aim: Cut oil imports, lower GHG emissions, and convert coal/biomass and MSW into methanol.
• Feedstocks: High-ash coal, agricultural residues, CO₂ from power plants, natural gas.
• Economic Impact:
  • Employment: ~5 million jobs across production and distribution.
  • Savings: ₹6,000 crore annually by blending 20% DME (a methanol derivative) into LPG.