Preliminary Design of Manufacturing of Methanol From CO2 and H2 with a Capacity of 150,000 Tons/Year

Abstract

This methanol plant design is motivated by the growing domestic demand for methanol in Indonesia and the country's high import dependency. At the same time, Indonesia faces significant CO2 emissions from its industrial sector. By utilizing CO2 as a raw material, this plant simultaneously contributes to reducing greenhouse gas emissions, to achieve Indonesia's net-zero emissions target by 2060. The plant is planned to be located in the Arun Lhokseumawe Special Economic Zone (SEZ), Aceh Province, Indonesia, with a production capacity of 150,000 ton/yr and operating 330 days/yr. The main raw materials of this plant are CO2 sourced from industrial flue gas and H2 produced from water electrolysis. The selected process is catalytic CO2 hydrogenation using a multi tubular fixed bed reactor (Lurgi type) with a Cu/ZnO/Al2O3 catalyst. The reactor is operated at 220°C and 50 bar. The methanol product is purified through a distillation column to achieve a purity of 99.7 wt%, meeting AA-grade commercial specifications. The economic evaluation is based on the design year 2030. The results show that the plant requires a Fixed Capital Investment (FCI) of $88,261,848 and a Total Capital Investment (TCI) of $106,906,091. The economic feasibility indicators obtained are as follows: Return on Investment (ROI) of 14.70% before tax and 11.47% after tax; Pay Out Time (POT) of 4.1 years before tax and 4.66 years after tax; Break Even Point (BEP) of 40.03% of design capacity; Shut Down Point (SDP) of 13.29%; and Discounted Cash Flow Rate (DCFR)/IRR of 28.12%. All feasibility indicators exceed the minimum required values; therefore, the proposed methanol plant with a capacity of 150,000 tons/year is declared economically feasible and financially attractive for establishment.