Limitation of Power-to-Methanol: Identifying the Barriers of Bridging Energy and Bio-Carbon to Produce Decentralized Renewable Methanol via Integrated Economical and Environmental Evaluation

Power-to-X technologies play a crucial role in accelerating the energy and material transition. A key opportunity lies in integrating these systems with existing bio-based infrastructures such as anaerobic digesters, providing a reliable source of biogenic carbon. Developing effective Power-to-Methanol (PtM) pathways requires a comprehensive understanding of process behavior through detailed simulation, including technical performance, economic feasibility, and environmental consequences. Despite growing interest, substantial variation remains in published levelized methanol costs, and many assessments insufficiently account for the full environmental footprint of production routes. This study evaluates the potential of PtM deployment in the Netherlands by comparing two pathways that utilize biogenic carbon sources: (i) hydrogenation of captured CO2 using green hydrogen and (ii) dry methane reforming (DMR) of biogas, followed by catalytic syngas conversion to methanol. Results indicate that operational expenses—mainly driven by renewable electricity consumption—far outweigh capital investment. Both routes yield an LCoMeOH of approximately €2630 per tonne, about five times the cost of fossil-based methanol. Life cycle analysis shows that DMR performs more favorably overall, although elevated freshwater ecotoxicity and eutrophication result from digestate application as fertilizer. Continued improvements in renewable energy integration and nutrient recovery technologies are essential for enhancing future economic and environmental performance.