Techno-economic analysis of e-methanol infrastructure choice for the case of Finland

Renewable electricity-based methanol is increasingly important for reducing emissions of hard-to-abate sectors such as the chemical industry and long-range shipping. The main challenge with sustainable methanol, however, is the supply of sustainable CO2. While point source CO2 is cost-effective, its availability is geographically limited, raising the question of the optimal e-methanol production locations when CO2 sources and the best renewable electricity sites are far apart. This study aims to identify the most economically attractive methanol production locations by comparing the relative transportation costs of electricity, hydrogen, and CO2. A methodology is introduced to evaluate cost-effectiveness of transporting these products, addressing a key research gap in existing studies. The results show that transporting CO2 to an electricity generation site for methanol synthesis is consistently the lowest cost option, with methanol produced with electricity or hydrogen transported to a CO2 source being 3–13% more expensive in 2030 and 5–15% more expensive in 2050. Additional factors such as safety, societal acceptance, long-term fuel demand, availability of input materials, and the risk of stranded assets must be considered as well, when determining optimal production sites. Moreover, municipalities that expedite regulatory approval could benefit from investments, additional revenues, and job creation.