Fortum consortium recieves €230m EU funding for green methanol

Project Air, a collaboration between Fortum, Perstorp and Uniper is taking the next steps in its plans to supply sustainable methanol for the European chemical sector, being selected for funding by the EU Innovation Fund in its latest wave.

When complete, the project could remove at least 1% of Sweden's total emissions, by eliminating fossil fuels as feedstock in methanol production in favour of bio-based and recycled alternatives.

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This equates to around 500,000 tonnes of carbon-equivalent emissions. The plant is set to be built at Perstorp’s existing facilities in Stenungsund, converting CO₂, residue streams, renewable hydrogen and biogas to methanol.

This could see use in a variety of products requiring chemicals, including mobile screens, paints to the fabrics in our clothes.

Perstorp CEO Jan Secher said the investment marks an "important milestone" in Sweden's decarbonisation efforts and for his company. As it exists "upstream" in the supply chain, a domino effect is that it would also make other products "downstream" greener.

"This is a crucial decision for Perstorp ...  as it creates increased availability of sustainable chemical products throughout our value chains. The chemical industry needs the carbons, but [they] must be non-fossil carbons and they must be put into circular flows so we get rid of CO2 in the atmosphere.

“I am proud to be the leader of a company that has the ability to drive such an industry-leading transformation project", he added.

The three companies applied for €97 million under the EU Innovation Fund, but could be awarded as much as €230 million, Perstorp claims.  Its latest wave will see it award €1.8 billion to at least 17 projects to help deliver the European Green Deal and the Fit for 55 package.

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The project has now entered a preparation stage, which will be complete at some point in the fourth quarter of 2022. It is hoped large-scale production of green methanol could start by 2026.

All this is part of the EU's goals to limit global temperatures by 2050, in line with the targets laid out by the Paris Climate Agreement.

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