CCU hub in the North Sea Port

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With more research and experimentation – adjusting burners and boilers, changing some logistics and storage infrastructure – converting these systems to methanol fuel is not expected to be technically challenging. Challenges related to the methanol properties in the engines can be addressed too including though testing activities and following technical recommendations offered in the domain. 27

It is not clear if the cost effectiveness of such a shift will make it an attractive business model for farmers or even for suppliers of methanol. It is most likely that CCU-based methanol will have a premium price which might be higher than traditional alternatives.

A possible window of opportunity is that many greenhouse farms in Belgium anticipate new instruments being rolled out that may include public support to install CHP systems. Within this modernisation wave, there could be an opportunity to introduce methanol-fuelled CHP systems.

Economic and social impact: •

Existing in the North Sea Port biodiesel and methylamines producers can potentially be a substantial market for CCU-based methanol as they require large amounts of methanol in their production processes.

There is a growing momentum for methanol in maritime industries due to climate issues and IOM commitments. This may create a wider market for traditional methanol, where ‘green methanol’ can also find customers.

The premium price expected for CCU-based methanol can create challenges for its uptake. It is argued that the size of the premium cannot be too high to maintain business interest. Companies are less likely to go beyond 10-20% extra.

In the water transportation domain, shipping companies’ customers can play a decisive role. Their choice for greener services and readiness to pay a premium price can promote the business case for green methanol. While more prevalent than before, customers with ‘green demands’ are still in the minority and tend to be larger companies, such as Heineken. As yet, there is little to no regulatory pressure for products to reduce their overall environmental footprint .

It was also stressed that producers’ marketing strategy and actions can be an important factor in securing a bigger market for green methanol. There are various ways of helping to commercialise premium-priced green methanol. This can include blending it with traditional fuel to keep the cost down, and as an alternative input to manufacturing by bringing in ‘green’ features to the final product.

A promising job generation potential is in the upper segments of the value chain associated with the methanol synthesis and electrolyser management. Between at the pilot and the commercial plants 25-24 and 100-180 permanent direct and indirect jobs can be created. Construction activities can also create 500-700 jobs over the 3-4 years

On the downstream part of the value chain, job creation due to shift to CCU-based methanol has rather low potential. Substitution of inputs in biodiesel and in methylamines production does not require changes in the processes. Water vessels by switching to

E.g. technical challenges of the methanol use in power generation are discussed by Murray and Furlonge (2009). Methanol has a significantly lower calorific value e.g. approximately half that of diesel. This is generally compensated for by a concomitant increase in the volumetric flow rate of methanol which can be achieved without deviation from usual operating conditions. Special nozzles can be used for high fuel distribution and low pressure drop. Methanol’s lower lubricating properties can pose problems for standard fuel-delivery systems, e.g. in situations where the fuel comes into contact with other moving parts within the engine. This is suggested to be addressed by then the use of suitable lubricant additives, but this might affects combustion emissions. Alternatively, an appropriate pump (e.g. screw type) with effective coatings may be used.

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CCU hub in the North Sea Port

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