Freight News, Sea

Nantes e-methanol plant to help shipping turn over a new leaf

[ October 11, 2024   //   Chris Lewis ]

Green hydrogen producer Lhyfe and Elyse Energy, a European specialist in the production of low-carbon molecules, are to jointly develop an  e-methanol plant at Nantes Saint-Nazaire Port on the Loire estuary.

Nantes lies in the heart of the Green Coast region and has been committed for several years to decarbonising its activities, which are still heavily dependent on fossil fuels. It says that transition to more ecological energy has become a requirement for competitiveness, and even survival, for European ports.

Nantes Saint-Nazaire Port selected Lhyfe to set up an industrial production and distribution operation for green hydrogen in late 2023 with production capacity of up to 85 tonnes per day, in Montoir-de-Bretagne, to the north of the Multivrac terminal, by 2028.

The green hydrogen will in turn be used by Lhyfe to make e-methanol, some of which will be used as green maritime fuel and the rest for other transport and industry locally. Elyse plans to produce 150,000 tonnes of e-methanol a year at the site.

Methanol is already used to make many everyday products, such as cosmetics, medicines, resins, plastic and paints. It is currently produced almost exclusively from coal and natural gas, but low-carbon alternatives have been emerging for several years, in particular e-methanol produced from hydrogen. Although e-methanol production is currently limited to a few thousand tonnes a year in Iceland, the sector is developing rapidly, with nearly 60 major industrial projects under construction around the world, notably in China, Sweden, Denmark, North America and France.

According to Nantes Saint-Nazaire Port, France has two major competitive advantages in e-methanol production– a low-carbon electricity mix and integrated chemical platforms capable of providing the necessary skills and infrastructure. With nearly 600,000 tonnes of fossil methanol imported each year by French manufacturers, and growing demand from major players in the maritime sector for methanol-powered ships, e-methanol also offers an opportunity to repatriate production while helping to establish a French industry of excellence.

The Nantes project is currently under development, and is subject to the granting of operating licences, building permits and financial investment decisions. Conclusions of initial studies will be published during 2025.