Unitel Technologies has successfully demonstrated its Merlin process for converting captured carbon dioxide into methanol, a development the company says could make carbon capture and utilization commercially attractive.

 

The Merlin carbon capture and utilization (CCU) technology is already operating at a plant in Danyang, South Korea, where it is being used to produce 10,000 tons of methanol annually.

 

Unitel’s standard Merlin process is designed to consume 30,000 tons of captured carbon dioxide each year and produce 73,000 tons—or 200 tons per day—of blue methanol.

 

The company says the process is particularly well suited as a supplement to existing ethanol plants, which provide a ready supply of fermentation-derived carbon dioxide as well as access to natural gas, electricity, skilled workers and established infrastructure.

 

Methanol has a broad and growing market in North America, with major applications including biodiesel, formaldehyde, resins and adhesives, chemical intermediates, specialty chemicals, and fuel and energy.

 

U.S. methanol demand reached approximately 11.5 million metric tons in 2025, with market prices ranging from $1,000 to $1,400 per ton. Demand is expected to rise sharply as methanol gains traction as a marine fuel, potentially reaching about 18 million tons annually by 2035.

 

Unitel says its Merlin CCU technology can deliver significantly stronger economics than conventional carbon capture and storage (CCS), which typically generates a net profit of $55-$65 per ton of captured carbon dioxide after federal tax credits.

 

“Another CCU method of producing methanol involves the reaction of captured carbon dioxide with electrolytic hydrogen,” says 

 Ravi Randhava, President of Unitel. “However, this chemistry does not make economic sense."

 

“At a nominal cost of $5 per kilogram for electrolytic hydrogen, this feedstock alone amounts to $1,000 per ton of methanol produced.”