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42 min ago 3 min read
A new EU-funded project is targeting the cost and energy intensity of e-methanol production by integrating multiple process steps into a single system.
The project, named Thunder, is backed by the EU’s Horizon Europe programme with a €3.99m grant and will run until September 2029.
It brings together three core stages of e-methanol production into a ‘one-pot’ process: carbon dioxide (CO2) and water vapour capture, co-electrolysis to produce carbon monoxide and green hydrogen, and catalytic synthesis of e-methanol.
Developers say the integrated system is designed to reduce energy demand and simplify plant design, using renewable electricity alongside heat recovery. CO2 is captured via multifunctional membranes before conversion.
The project is expected to deliver up to a 75% reduction in greenhouse gas emissions, alongside a 50% to 60% cut in capital expenditure and an 8% to 16% reduction in operating costs.
“The Thunder approach is designed to overcome the limitations of current e-methanol production technologies, which are often energy-intensive and costly,” said the consortium, which includes Spain-based private research organisation Fundació Eurecat
E-methanol is being explored as a low-carbon fuel for sectors such as shipping, as well as a feedstock for chemicals and power generation. Unlike conventional methanol, it is produced from captured CO2 and green hydrogen, offering a pathway to recycle carbon and reduce lifecycle emissions.
However, cost remains a key barrier to wider deployment. Estimates suggest e-methanol production currently ranges from around $800 to more than $1,600 per tonne, with some projects exceeding $2,000 per tonne depending on the source of CO2 and electricity.
By comparison, conventional fossil-based methanol can cost as little as $100 to $250 per tonne, highlighting the scale of the economic challenge.
Despite this, demand is expected to grow, particularly in shipping, where low-carbon fuels such as e-methanol can reduce emissions by up to 95% compared with fossil fuels, depending on the production pathway.
The project comes amid a broader push by the EU to scale up e-methanol as part of efforts to decarbonise shipping and chemicals. Funding programmes including Horizon Europe, the Innovation Fund and support from the European Investment Bank are backing a growing pipeline of projects across the region.
Several initiatives are already moving towards commercialisation. These include the Kassø Power-to-X facility in Denmark, as well as Horizon Europe-backed projects such as Poseidon and Green Meiga, which are focused on integrating green hydrogen and captured CO2 into scalable e-methanol production.
