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SFC Energy and WACKER work on distribution of methanol and hydrogen

Anela DoksoBy Anela Dokso11/03/20223 Mins Read
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SFC Energy and Wacker Chemie have signed a letter of intent for renewable methanol distribution.

WACKER plans to supply SFC Energy with up to 2,000 metric tons of methanol from the RHYME Bavaria project planned for its Burghausen site beginning in 2025, according to the letter. SFC Energy plans to offer this methanol as a low-emission fuel for use in its customers’ methanol fuel cells. As a decentralized power supply, these cells are used in private, commercial, and governmental applications.

A 20-megawatt electrolysis plant is being built as part of the RHYME Bavaria project. This plant will use renewable electricity to produce green hydrogen, which will then be converted to methanol in a synthesis plant with CO2 from existing production processes. The synthesis plant’s annual capacity is expected to be 15,000 metric tons.

“As one of the world’s leading manufacturers of fuel cells, we’re helping our customers in their efforts to achieve net zero. Fuel cell technology ensures that environmentally sound fuels like renewable methanol from the RHYME Bavaria project or green hydrogen can be reliably converted to clean electricity,” says Dr Peter Podesser, CEO of SFC Energy. “If we are to transition sustainably to a climate neutral industrial society, support from programs like the National Hydrogen Strategy and the EU’s Green Deal is essential. Working with WACKER means more than just having an extraordinarily strong partner at our side with the technology we need and with industry expertise – WACKER also shares our vision of a climate neutral industrial society.”

”Our partnership with SFC Energy is further evidence of the broad range of potential of RHYME Bavaria going forward,” underscored WACKER President & CEO Dr Christian Hartel. “We are convinced that green hydrogen and renewable methanol are essential building blocks for transforming chemical processes towards net zero – whether they’re used as raw materials, reducing agents or fuels. Currently, however, this kind of plant complex doesn’t yet pay for itself. Consequently, the grants we have applied for at the European and national levels are an essential prerequisite to make RHYME Bavaria a reality.”

Methanol and hydrogen are both important starting materials for chemical products like silicones. The project is a first step toward defossilizing chemical processes for WACKER. The new processes could reduce CO2 emissions by up to 100% when compared to current production methods. The plant complex will cost around €100 million in capital expenditures. Once the requested funding has been approved, the facility planning phase can begin. After that, the plant could start operating in 2025.

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