Swedish Project Air, an industrial concept to produce methanol a large variety of recovered end-of-life streams and hydrogen from electrolysis, has been allocated approximately EUR 30 million by the Swedish Energy Agency (SEA).

The project is carried out by the chemical group Perstorp in cooperation with Uniper and Fortum, and the aim is to reduce carbon emissions by up to half million tons annually.

The Project AIR will demonstrate a highly innovative, integrated process concept for low-carbon, renewable and circular methanol production within the European energy-intensive chemical sector. Methanol is one of the most important raw materials for the chemical industry, and up until now, no competitive sources of sustainable methanol exist on the market.

“It is directly crucial for climate change and the goal of reaching a circular climate neutral welfare society that we accelerate the use of new innovative green technology on an industrial scale. That is why this investment is strategically important,” said Robert Andren, Director General, Swedish Energy Agency.

“In Project Air, we have a very strong concept that, fully developed, will be of interest to all chemical industries around the world in the transition to becoming climate neutral. I am proud of what we have achieved so far together with our partners,” said Jan Secher, President and CEO, Perstorp.

Project AIR aims to substitute all the 200,000 tons of fossil methanol that Perstorp uses annually in Europe as a raw material for chemical products. The project would support companies downstream in the value chains in their efforts towards renewable/circular materials, reduced carbon footprints, and in their ability to offer sustainable, affordable products.

If completed, Project Air will reduce greenhouse gas emissions by up to 500,000 tons annually. The goal is to start producing sustainable methanol in 2025. A final decision on what projects will be funded by the EU Innovation Fund is expected later this year.