Energy Reports· 2026Q1
Transition to low-carbon ammonia and methanol through hybrid energy systems and direct air capture: A 4E assessment
- 0citations
- Q1SCImago
- 2026year
Short summary
Blue methanol and gray ammonia are currently profitable, with net present values (NPV) of $285M and $207M, respectively, while green methanol and ammonia are economically unviable at a 10% discount rate (LCOM = $856/t; LCOA = $837/t).
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Key points
- Blue methanol and gray ammonia are profitable with NPVs of $285M and $207M, respectively.
- Green methanol and ammonia are uneconomical at a 10% discount rate (LCOM = $856/t; LCOA = $837/t).
- Green methanol and ammonia offer higher exergy efficiencies (41.9% and 43.5%) and lower emissions (57% and 90% reduction).
- Economic viability of green pathways improves at a 4% discount rate, yielding positive NPVs.
AI-generated from the title and abstract; the full text is not read.
Abstract
Decarbonizing methanol and ammonia production has become increasingly important for reducing greenhouse gas emissions; however, balancing environmental benefits with economic feasibility remains a major challenge. This study addresses this challenge by providing a unified comparative assessment of four production pathways integrating advanced carbon capture technologies and hybrid energy systems. Four scenarios, including blue methanol, green methanol, gray ammonia, and green ammonia, are evaluated in terms of their technical, economic, exergy, and environmental performance. The process units, including steam methane reforming (SMR) and water electrolysis for hydrogen production, post-combustion carbon capture (PCC) and direct air capture (DAC), and methanol and ammonia synthesis, were simulated using Aspen HYSYS and Aspen Plus. The parabolic trough collector (PTC)-based solar plant was modeled using Thermoflex and System Advisor Model (SAM) software to meet the thermal demands of the production chain. A sensitivity analysis on the solar fraction was conducted to determine the economically optimal point. Economic analysis indicates that blue methanol and gray ammonia exhibit significant profitability, with net present values (NPV) of 285 and 207 M$, respectively. In contrast, green methanol and green ammonia have high levelized costs (LCOM = 856 $/t; LCOA = 837 $/t), rendering them economically unviable at a 10% discount rate. At a reduced discount rate of 4%, green methanol and green ammonia achieve NPVs of 123 and 135 M$, respectively, indicating improved economic viability. Exergy analysis shows that green methanol and green ammonia attain the highest overall exergy efficiencies of 41.9% and 43.5%, respectively. Environmental analysis using Global Warming Potential (GWP) metric shows that green methanol and green ammonia reduce greenhouse gas emissions by 57% and 90%, respectively. The findings of this study demonstrate that low-carbon and green pathways can reduce emissions while remaining economically viable under hybrid energy systems, with supportive policies and financial incentives.
The authors' abstract, as published at the source. Energy Reports, 2026 · DOI ↗
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Field: Energy Engineering and Power Technology
Energy Engineering and Power TechnologyEnergy