Sustainable methanol project to receive EU funding

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In Sweden, renewable chemicals maker Perstorp has been selected by The European Union Innovation Fund to receive a grant for Project Air, a planned production facility for sustainable methanol at Stenungsund. 

Project Air, which is a collaboration between Perstorp, Fortum and Uniper, has applied for €97 (US$98.6 million). Total investment in the project expected to amount to more than €230 million. At full capacity, Project Air will reduce global CO2 emissions with close to 500,000 tons from today’s levels, corresponding to 1% of current emissions in Sweden. To produce sustainable methanol, the facility will use significant amounts of CO2  and other residue streams recovered from Perstorp’s ongoing operations, biogas from new dedicated plants together with hydrogen from a new large electrolysis plant. All electrical energy for the combined project will be renewable based. 

“The Innovation Fund’s decision shows that Project Air is an important future investment for the climate. This is a crucial decision for Perstorp, our customers and partners, as it creates increased availability of sustainable chemical products throughout our value chains. The chemical industry needs the carbons, but it must be non-fossil carbons and they must be put into circular flows so we get rid of CO2 in the atmosphere,” says Perstorp President and CEO Jan Secher. 

The sustainable methanol from Project Air will be used to manufacture chemical products. The project is 

one of 17 awarded a total €1.8 billion by the Innovation Fund. The consortium behind Project Air now enters the Grant Agreement Preparation process, which is to be completed during the fourth quarter. The project design and planning of the facility are being conducted in parallel.