E-methanol has also been considered a potential fuel for transport, including for ships for which batteries are not an option. However even for shipping, it looks too expensive. So for road transport where EVs are already competitive with fossil fuels, I can't see E-methanol or hydrogen fuel cell vehicles taking much share from EVs. About the only area that hydrogen fuel cells are gaining some traction is for buses in China through government subsidies.
"Government-backed green hydrogen-to-methanol pilot in Belgium scrapped due to 'escalating costs' “Escalating costs, primarily influenced by the ongoing energy crisis and geopolitical uncertainties, have rendered the production of e-methanol financially unfeasible,” said the consortium of seven companies, led by Inovyn, a subsidiary of chemicals giant Ineos. Search the archivesSECTIONSLatest NewsProductionTransportIndustrialPowerInnovationPolicyAnalysisExplainersGENERALAbout usAdvertiseFAQNewsletterEventsPrivacy policyContact usALSO READRechargeUpstream OnlineInovyn’s chemical manufacturing complex at Lillo in the Port of Antwerp.Photo: IneosGovernment-backed green hydrogen-to-methanol pilot in Belgium scrapped due to 'escalating costs'Consortium admits that no offtakers were willing to lock into long-term contracts at current prices2 February 2024 11:00 GMT UPDATED 2 February 2024 11:07 GMTBy Polly MartinThe Power to Methanol project at the port of Antwerp, an 8,000 tonne-per-year pilot originally scheduled to start operations in 2022, has been officially cancelled by its development consortium.Stay ahead on hydrogen with our free newsletterKeep up with the latest developments in the international hydrogen industry with the free Accelerate Hydrogen newsletter. Sign up now for an unbiased, clear-sighted view of the fast-growing hydrogen sector.“Escalating costs, primarily influenced by the ongoing energy crisis and geopolitical uncertainties, have rendered the production of e-methanol financially unfeasible,” said the consortium of seven companies, led by Inovyn, a subsidiary of chemicals giant Ineos.Spanish oil company and shipping giant to develop €1bn green hydrogen-to-methanol project, the largest in Europe“The substantial increase in e-methanol production costs no longer aligns with the pricing expectations of the transport sector and major industrial buyers.”It continued: “Despite intensive commercial endeavours to engage potential e-methanol offtakers, these efforts did not yield the desired outcomes to warrant a final investment decision.“Notably, the immaturity of the e-methanol market, coupled with pervasive uncertainties, has led to the reluctance of potential buyers to commit to long-term contracts in line with the project’s duration.”The Power to Methanol project was meant to abate 8,000 tonnes of CO2 a year in its initial phase, with the ambition to eventually scale up production to supply wider industrial use of the chemical, as well as potential new markets in road transport and shipping.The project’s feasibility study alone had cost around €2m ($2.18m), of which the regional Flemish government had stumped up €1m in 2021.
