The science and technology options assessment (STOA) unit of the European parliament is a think-tank that provides advice to MEPs on politically sensible technology and science matters. It is governed by a panel of 15 MEPs, representing six parliamentary committees. The launch of a STOA study - 'Methanol: a future transport fuel based on hydrogen and carbon dioxide?' - was decided as one of the follow-up actions after the STOA annual lecture on 'Is an oil free future possible?' that remotely included the participation of George A. Ola, awarded the Nobel prize for chemistry in 1994 and author of the famous book - 'Beyond oil and gas: the methanol economy'.
The STOA report concludes that some benefits can be envisioned in the medium and long-term in respect of reduced dependence on conventional fossil fuels and lower risks to security of supply. It also emphasises, however, that considerable and sustained research efforts are necessary to turn CO2 into an efficient and competitive prime material, which would be attractive not only for the transport sector, but also for other industries. There are four policy options available to the legislator.
"Some benefits can be envisioned... in respect of reduced dependence on conventional fossil fuels"
First, policy option one, which suggests letting the market decide and going for flexible fuel vehicles in the meantime. Since there is no clear picture for the moment as to which alternative fuels and powertrain technologies will ultimately prevail in the market in the long-term, the option of creating a level playing field for all technologies - as proposed by the promoters of the open fuel standard act in the US - is appealing. This would oblige the car industry to put a substantial number of vehicles on the market, which can run on natural gas, hydrogen, biodiesel, methanol, as well as flexible fuel or plug-in electric drive vehicles, among others.
Policy option two involves making a regulatory push for the development of carbon capture and use. Setting very clear rules for competition between different types of fuels and vehicle technologies, based on a comprehensive and comparable well-to-wheel life-cycle analysis and considerations of security of supply would favour CO2 recycling. It would also imply embracing the idea of CO2 as an important future prime material and setting up a powerful carbon capture industry.
Policy option three considers actively promoting the development of 'methanol islands' when and where it is an easy and efficient alternative to classical fuel. Under very specific circumstances, such as in Iceland with its very low electricity prices, methanol produced from CO2 is already competitive with gasoline. Further key opportunities for bringing down production costs for methanol from CO2 can also be seized, such as using electricity from wind farms that cannot be evacuated to the grid, or employing solar electricity generated in isolated but sun-rich regions for hydrogen and methanol production. The proximity of the CO2 emission source to the hydrogen and methanol production sites can help avoiding the high costs of transporting both types of gas.
Finally, policy option four recommends promoting the use of methanol in the transport sector as a temporary transition strategy towards a long-term goal to reduce oil dependency. This policy option basically implies putting a price on energy security, which can be defined by evaluating the direct and indirect macroeconomic effects of rising transport prices throughout Europe. Higher fuel prices increase the price levels of all types of goods and affect the competitiveness of export-oriented companies, and of vulnerable regional economies and consumer groups alike. STOA would be glad to organise a presentation of the report by its authors. To this end, feel free to contact our secretariat (tel.: +32 2 28 42236; email: STOA@p.europa.eu).