How Bio-sourced Methanol is Produced

Bio-methanol production typically uses biogenic carbon sources to generate synthesis gas (syngas), which is catalytically converted into methanol.

Key Pathways:

1. Gasification of Biomass:
• Agricultural residues, wood waste, or municipal solid waste are gasified to generate syngas (CO, CO₂, H₂).
• Syngas is then catalytically converted to methanol using copper-based catalysts.
2. Anaerobic Digestion & Reforming:
• Biogas (mainly CH₄ and CO₂) from anaerobic digestion is reformed to produce syngas.
• Syngas follows conventional methanol synthesis routes.
3. CO₂ Hydrogenation:
• Captured CO₂ is combined with green hydrogen via catalytic hydrogenation.
• Yields methanol directly, with zero fossil input.
4. Industrial Waste Gas Fermentation (e.g., steel mill gases):
• CO/CO₂-rich flue gases are converted into methanol, supporting industrial decarbonization.

Case Study: Nordic Green (Sweden)

Nordic Green has built a bio-methanol plant in Örnsköldsvik, Sweden, using forest residues and sawdust for syngas generation.

Highlights:

• Feedstock: Sawdust and forest waste.
• Methanol output: 5,000 tonnes/year.
• Integrated with pulp mill infrastructure.
• Claimed GHG reduction: ~90% compared to fossil methanol.

Timeline & Outcome:

• 2020: Project announced under the “SunFuel” initiative.
• 2021–2022: Construction and commissioning.
• 2023: Commercial production begins with regional distribution.
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Global Startups Working on Bio-methanol

• Carbon Recycling International (Iceland) – Converts captured CO₂ and green hydrogen into methanol at scale. Their “George Olah Plant” produces over 5,000 tonnes/year.
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• Vertimass (USA) – Focuses on converting ethanol into higher-value biofuels and methanol through novel catalysts.
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• Biodom (Slovenia) – Uses syngas from biomass to produce bio-methanol for local heating and industrial use.
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India’s Position

India currently lacks commercial bio-methanol plants but shows interest via public sector projects:

• NTPC R&D is working on biomass gasification-based methanol routes.
• CSIR–IIP and BHEL have initiated pilot-scale biomass-to-methanol plants.
• Inclusion in SATAT and National Green Hydrogen Mission underscores future integration potential.

Commercialization Outlook

Market and Demand

• Global methanol market: ~$30 billion (2024), expected to reach ~$45 billion by 2032.
• Applications: Formaldehyde, MTO (methanol-to-olefins), biodiesel, fuel blending.
• Bio-methanol has rising demand in shipping (IMO regulations), green chemicals, and blended fuels.

Key Drivers

• Decarbonization mandates in maritime and chemical industries.
• Growing demand for carbon-neutral fuels.
• Supportive policies (EU Renewable Energy Directive, IMO 2020, India’s Green Hydrogen Mission).

Challenges to Address

• Cost Gap: Bio-methanol ~$400–700/ton vs fossil methanol ~$300–400/ton.
• Feedstock logistics: Requires reliable biomass or biogas supply chains.
• Carbon Efficiency: Gasification and CO₂ hydrogenation processes face energy losses.
• Infrastructure & Safety: Methanol’s toxicity demands specialized handling at scale.

Progress Indicators

• 2011: CRI’s CO₂-based methanol plant launched in Iceland.
• 2019–2023: Bio-methanol capacities deployed in Sweden, Netherlands, Denmark.
• 2023: Over 100,000 tonnes/year of global bio-methanol capacity online.

TRL: 5 to 9 depending on the pathway—biomass gasification and biogas reforming are nearing or at commercial levels (TRL 7–9), while CO₂ hydrogenation and fermentative routes are progressing through pilot and demonstration stages (TRL 5–8).

Conclusion

Bio-sourced methanol offers a scalable, low-carbon pathway to decarbonize fuel and chemical sectors. With maturing technologies—from CO₂ hydrogenation to biomass gasification—and strategic deployment in Europe, it is gaining commercial momentum. India’s focus on biomass valorization and green hydrogen positions it as a future contender. As costs fall and climate goals tighten, bio-methanol could become a mainstream commodity chemical aligned with circular and low-emission economies.

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