Electricity-based methanol-to-X as integral solution in hard-to-abate segments in the energy-industry system in the case of Finnish industry expectations

Defossilisation of hard-to-abate segments of the energy-industry system is a significant opportunity to achieve climate goals, increase competitiveness, and improve energy security. Methanol emerges as the third most important energy carrier, next to hydrogen and renewable electricity. Power-to-X in general and e-methanol in particular become core pillars in phasing out fossil fuels in the chemical industry and transport. Methanol-to-X summarises the diverse applications of methanol from direct use as marine fuel to methanol-to-kerosene for aviation and methanol-to-olefins as a central building block of a sustainable chemical industry. This research forms an investigation of prevalent industrial perceptions on the green transition, Power-to-X Economy, and e-methanol applications in the chemical industry on the case of Finland through a qualitative case study in which in-depth findings are reflected with and compared to recent literature and European Union policies. The findings show that the chemical industry remains in a passive state waiting for clearer and stronger regulatory incentives to drive the green transition. Companies recognise the competitive advantage in domestic e-methanol production as a part of international Power-to-X Economy and its positive implications on society and economy but are reluctant to seize the opportunity. Regulation in the European Union is perceived to include further end-products of the chemical industry other than aviation fuels to create market demand for non-fossil alternatives through dedicated quotas. National strategies shall complement the European context on how to turn the domestic assets of biogenic carbon dioxide and affordable renewable electricity into benefit for industry and society. • e-Methanol can boost industrial defossilisation and competitiveness in Europe. • Effective regulation and strategies propose strong e-methanol demand in Europe. • Qualitative study of e-methanol potential in the chemical industry was conducted. • Currently, the industry does not perceive demand for e-methanol or derivatives. • Regulation is required to improve the competitiveness and demand of e-methanol.