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11.2 State of the art Generally, E.U. companies in many sectors, including chemicals, fuels, and fertilizers, are committed to more sustainable production of chemicals and fuels. Company performance is no longer measured only in terms of business targets and profitability; sustainability targets are increasingly included as key performance metrics. Similarly, investors and shareholders are demanding that companies develop and execute their strategies to be consistent with the Sustainable Development Goals [3]. Correspondingly, many companies are converging on the production of hydrogen from water electrolysis, an alternative to Steam Methane Reforming (SMR), as a primary development goal. Every ton of hydrogen produced by SMR releases 9-10 tons of CO2. Thus, using renewable energy to produce hydrogen represents an enormous opportunity for CO2 emissions reductions. Today, water electrolysis is already technologically feasible at the scale of 5-10 MW plants. However, the production cost of this green (e.g. fossil-free) hydrogen is 2-3 times higher than the hydrogen produced via SMR. In principle, the E.U. Emissions Trading System (ETS) that fixes the market CO2 price should be the link between the fossil and the renewable world; however, its current pricing scheme does not facilitate massive investment in Power-to-X. In this context, some regions in the world, such as Canada, Australia, and California, are considering or have initiated an imposed CO2 price to make RES viable [4]. With the availability of green hydrogen, other important technologies such as the reduction of CO2 to hydrocarbons and oxygenates (e.g. methanol) (Sections 2 and 3) and the reduction of N2 to fertilizers (Section 5) become possible. A small methanol plant in Iceland is already using geo-thermal electricity to electrolyze water and subsequently reduce CO2 to methanol [5]. In fact, power to methanol technologies that employ waste CO2 may already be cost-competitive compared to SMR if the price of electricity is <6 cents per kWh [6]. Furthermore, Sunfire and Audi have demonstrated the conversion of CO2 and water into liquid hydrocarbons via electrolysis and Fisher-Tropsch technology [7]. The CO2 used for such processes can be captured either from point sources or via direct air capture. The costs associated with technologies for direct air capture are decreasing; currently, CO2 can be captured from air for e600 per ton [8] . Fermentation of carbohydrates produces free CO2 as a byproduct, and combustion of biomass or municipal waste may also provide a reliable and cheap source of CO2. However, it should be noted that gasification of biomass can already produce syngas (a mixture of CO and H2) directly [9]. 11.3 Challenges While many important technologies are already available via green hydrogen or carbon capture, integration and scale-up as part of the whole production chain remain to be demonstrated. There- 111PDF Image | sustainable production of fuels and chemicals
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