Analysis of green e-methanol supply costs: Domestic production in Europe versus imports via pipeline and sea shipping

Methanol, a key chemical industry feedstock, is expected to have an important role in high value chemicals production and as a clean maritime fuel. Renewable electricity-based methanol or e-methanol may be crucial for defossilisation of hard-to-abate sectors and to address climate change. This study examines the cost competitiveness of e-methanol production in solar-rich regions of Morocco and Chile compared to representative European countries of Germany, Finland, and Spain. Domestic European production costs are assessed against those from potentially exporting regions. Detailed analysis of pipeline and shipping costs is conducted to evaluate their impact on final import costs. Results indicate that Germany may benefit from imports from Morocco and Chile with 4–14% and 15–22% lower in cost in 2050, respectively. Finland can achieve cost reductions of up to 26% in 2030 and up to 37% in 2050 with imports. Spain, with its abundant solar resources, may not benefit from pipeline imports from Morocco, but can achieve 5–15% savings in 2030–2050 if e-methanol is imported by sea from Chile or Morocco. Shipping is found to be more advantageous for e-methanol trading than pipeline. Other factors such as energy security, tax revenues, and job creation should also be considered by potential importers.