Project Summary – Methane or Methanol?
Sustainable methane and methanol both have the potential to play a crucial role in the decarbonization of industry and society, serving as transportation fuels, hydrogen carriers, or feedstocks for producing a wide range of other chemicals and fuels.
This project focused on evaluating and comparing the conditions for methane- and methanol-based value chains within the West Sweden Chemicals and Materials Cluster, with production based on biomass gasification. Electrification was also considered to increase carbon utilization efficiency, creating so-called bio-electrofuels or hybrid fuels.
The study centered around Södra’s Värö pulp mill, identified as a strategic location for production and distribution. From there, methane or methanol would be supplied to other cluster members for further industrial use.
Key focus areas included:
- Plant sizing and technology selection
- Distribution and logistics
- Economic viability and business cases
- Climate impact and environmental benefits
- Barriers and opportunities, including process integration, technology maturity, and policy frameworks
The results provide a comprehensive comparison of the two pathways, supporting strategic decision-making for sustainable fuel production in the region. By identifying the most promising value chains, the project contributes to accelerating the transition toward a fossil-free, circular industrial ecosystem.
📄 Read the full report:
Final Report: Methane or Methanol? (PDF)

