In 2019, the collaborative effort of seven prominent industrial and business partners (Advario, ENGIE, Fluxys, Indaver, INOVYN, ParticipatieMaatschappij Vlaanderen and Port of Antwerp-Bruges) led to the inception of the ‘Power to Methanol Antwerp BV’ consortium.
Our ambitious project aimed to produce 8000 tonnes of e-methanol, a sustainable alternative to traditional methanol, by combining captured CO2 with hydrogen generated from renewable electricity. This initiative was set to significantly reduce carbon emissions by avoiding at least one ton of CO2 for every ton of e-methanol produced.
Throughout its existence, this project has been supported extensively by various levels of policy in Flanders (Vlaio and STRES), and we express our heartfelt gratitude for this invaluable public support. Substantial strides were made in developing the regulatory and legal framework, marking a significant learning curve for all involved partners in this emerging sector and economy.
Regrettably, despite our concerted efforts, the project’s economic viability has come under significant strain. Escalating costs, primarily influenced by the ongoing energy crisis and geopolitical uncertainties, have rendered the production of e-methanol financially unfeasible. The substantial increase in e-methanol production costs no longer aligns with the pricing expectations of the transport sector and major industrial buyers.
Despite intensive commercial endeavors to engage potential e-methanol off takers, 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.
In light of these challenging market conditions and the uncertainty surrounding their duration, the consortium partners have made the difficult decision to terminate the project and forego the construction of the demo plant. Although this decision is regrettable, we remain committed to exploring future sustainable ventures and fostering collaboration in the pursuit of innovative solutions.
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