A Technology Review and Cost Analysis of the Production of Low Carbon Methanol and Following Methanol to Gasoline Process

Bergins, Christian; Buddenberg, Torsten; Koytsoumpa, Efthymia-Ioanna; Duarte, Maria João; Kakaras, E.; Schmidt, Stephan; Deierling, Alexander

doi:10.1007/978-3-662-58006-6_19

Cited by 7 publications

(5 citation statements)

References 1 publication

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“…Due to the long construction periods and irreversibility of investments in the energy industry, investors tend to focus on long-term uncertainties and evaluate investment decisions at discrete time intervals. Therefore, we use a discrete model with a one-year resolution and leave for future research the possibility of addressing the power-to-methanol (Bergins et al, 2015) and time-to-build (Majd & Pindyck, 1987) probleme.g., by adopting a finer resolution and expanding state spaces, respectively.…”

Section: Model Frameworkmentioning

confidence: 99%

Industrial Utilization or Storage of CO2? A Compound Real Options Valuation for the Retrofitting of Coal-Fired Power Plants

Madlener

2023

Preprint

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We investigate the sequential investment in carbon capture and storage (CCS), i.e., the case of retrofitting a coal-fired power plant, and then in carbon capture and utilization (CCU) for methanol production. A (nested) compound real options model based on a backward recursive dynamic programming algorithm is used for the analysis. The options to invest in CCS and CCU are investigated individually first, and then sequentially, leading to a hybrid CCUS plant that enables both methanol production and CO2 storage. The prices of electricity, carbon and methanol are considered as stochastic and correlated with each other. Managerial flexibility exists regarding a postponement of the investment decision and the real-time optimization between selling methanol to the market or storing CO2 for earning carbon credits after establishing the CCUS plant. We find that at today’s relatively high CO2 prices CCS investment is economically rational, whereas CCU for methanol is not. Combining CCS with CCU increases the overall investment probability and potential for larger profits. Since methanol is more valuable than CO2, CCU can be expected to dominate the value of the compound option for the case of favorable market conditions (i.e., sufficiently high methanol and CO2 prices). JEL Classification Nos.: C61, G11

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Section: Model Frameworkmentioning

confidence: 99%

Industrial Utilization or Storage of CO2? A Compound Real Options Valuation for the Retrofitting of Coal-Fired Power Plants

Madlener

2023

Preprint

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“…Zhang et al 40 conducted a life cycle assessment of Power‐to‐Gas systems and assumed a waste heat from the electrolysis of about 28.5 %, which they used for heat integration. Bergins et al 41 investigated the potential of upgrading waste heat from electrolysis and a post combustion CO 2 capture plant using HTHP to produce MeOH. They assumed that 15.9 % of the power consumption could be extracted as usable excess heat at 80 °C.…”

Section: Ptx Value Chain Towards Ome3–5mentioning

confidence: 99%

Improved Energy Efficiency of Power‐to‐X Processes Using Heat Pumps Towards Mobility Sector Defossilization

Mantei

Kraume

Salem

2022

Chemie Ingenieur Technik

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Combining Power‐to‐X (PtX) processes with high temperature heat pumps (HTHP) can significantly increase their energy efficiency. Evaluating the example of oxymethylene ethers (OME) production from H2 via H2O electrolysis and captured CO2 from air shows that by upgrading waste heat streams using HTHP, a process overall energy efficiency of higher than 61 % can be achieved compared to 30 % in conventional integrated processes. Thereby, the waste heat stream from H2O electrolysis already covers the low temperature heat demand for CO2 capture via direct air capture, not only for OME but also for various PtX products. Importantly, a significant lever for the energy efficiency enhancement is the consideration of other low temperature heat‐demanding sectors. High overall process energy efficiencies and the electrification of the industry are key aspects towards a sustainable mobility sector.

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“…This Power-to-X concept has been investigated in diverse processes, such as methanol syenthesis. [16][17][18][19][20] Producing chemicals using electricity can also provide enormous storage and/or absorption capacities for excess power. As such, the Power-to-X approach provides a pathway to decarbonize the chemical sector and the power grid.…”

Section: Introductionmentioning

confidence: 99%

Exploiting electricity market dynamics using flexible electrolysis units for retrofitting methanol synthesis

Rebarchik

Bhandari

et al. 2023

Energy Environ. Sci.

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A Technology Review and Cost Analysis of the Production of Low Carbon Methanol and Following Methanol to Gasoline Process

Cited by 7 publications

References 1 publication

Industrial Utilization or Storage of CO2? A Compound Real Options Valuation for the Retrofitting of Coal-Fired Power Plants

Industrial Utilization or Storage of CO2? A Compound Real Options Valuation for the Retrofitting of Coal-Fired Power Plants

Improved Energy Efficiency of Power‐to‐X Processes Using Heat Pumps Towards Mobility Sector Defossilization

Exploiting electricity market dynamics using flexible electrolysis units for retrofitting methanol synthesis

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