AN interesting discussion. As I understand the capital cost of a...

AN interesting discussion.

As I understand the capital cost of a methanation plant,Synthetic natural gas plant, is similar to that of an FT plant.

There is significant energy loss in this process as it is exothermic. i.e. Less GJ out than in.

http://www.netl.doe.gov/technologies/coalpower/gasification/gasifipedia/5-support/5-12_methanation.html

Bottom line is to look at the local marker, cost of getting to market and the selling price per unit of energy.

Synthetic Diesel in the US sells for around $20/Gj. Natural gas is about $3.50/Gj and electricity is generally between the two depending on the energy source.

Gasifiers can run up and down to load follow but generally one would expect that there would be some form of storage to provide operational flexibility.

Power using Syngas can be produced using low quality air injected product. Saving the significant capital cost of an oxygen plant.