Illuminating the Future of E-Methanol: Solar Energy Pathways and Prospects

This review explores the potential of solar-driven methanol production as a sustainable alternative to conventional fossil-based methods. While promising, its economic viability is challenged by high production costs associated with hydrogen (H2) generation, CO2 capture, and solar energy utilization. Currently, solar-derived methanol costs range from $0.94 to $2.4 kg−1, compared to $0.38 to $0.51 kg−1 for fossil-derived methanol, with electrolyzers contributing up to 95% of plant costs. This review examines critical factors influencing these costs, including advancements in electrolyzer technologies, solar-to-H2 conversion efficiency, and renewable energy integration. Additionally, policy measures such as subsidies and tax incentives are highlighted as enablers for financial competitiveness. A specific focus is given to Malaysia, where abundant solar resources, governmental support, and renewable energy targets create a favorable landscape for solar methanol development. With continued innovation, strategic investments, and supportive policies, solar-based methanol could achieve cost parity with fossil-derived alternatives by 2050, positioning it as a cornerstone of global sustainable energy systems.