Lot 2: Renewable methanol
This lot covers the purchase side (HPA) of renewable methanol in the €900m pilot tender.
At present, almost all methanol is still produced by unabated steam reforming of coal or natural gas, which, according to IRENA, means that methanol production is currently responsible for around 10% of total emissions from the chemical sector.
Renewable methanol (CH3OH) is promoted in the European Union’s hydrogen strategy due to its great potential to decarbonize the transport sector, particularly the maritime sector, heavy goods traffic, and the chemical industry.
€300 million were offered by Hintco to purchase renewable methanol in its pilot tender launched in 2022. Over 500 interested parties from 52 countries across five continents downloaded the tender documents from Hintco’s auction platform.
You will find the results here once the award procedure has been finalized.
Product specifications for methanol
Additional product specifications
In addition to the above-mentioned technical specifications, the product must comply with additional product specifications pertaining to the renewable and emissions savings characteristics of the product. They are based on the RED II and the Delegated Acts (2023/1184 and 2023/1185) and fulfil the requirements set in the grant decision and additional instructions from the provider of funds, BMWK.
They include the following criteria:
- All hydrogen atoms must be derived from water electrolysis
- The electricity used in the production process must derive from renewable sources
- The GHG emissions savings (including transportation) must be at least 73 per cent in comparison to the fossil fuel comparator as set out in the Delegated Regulation (EU) 2023/1185 at 94 gCO2eq/MJ
Environmental and social sustainability
Find out here about the range of tools we use in our pilot tender to ensure that climate protection goes hand in hand with environmental and social sustainability.