Techno‐Economic Analysis of Methanol Production From Steel Mill Gases

ABSTRACT Steel mill gases (SMGs) are currently used mainly for on‐site heat and power generation. They can, however, also be utilized to produce base chemicals to address the need for defossilization of industry. Four concepts to produce methanol from different SMGs are presented and evaluated regarding their levelized cost of methanol. Results show levelized cost in a range between €1130 and €1419 t −1 over all considered concepts. Electrolysis is identified as the main contributor to costs. A sensitivity analysis is applied to further examine cost factors. Due to capital expenditures (CAPEX) uncertainty of about 50%, as well as disregarded factors, the reported costs should not be used as benchmarks for market prices but rather serve as an estimate to identify the main contributors to overall cost.