Carbon capture and utilisation (CCU) is an innovative concept that involves converting carbon dioxide (CO₂) captured from point sources of emission or the air into value-added products. It has been gaining considerable attention lately for its role in realising a circular economy. In this context, our study aimed to examine the techno-economics of producing methanol and urea from the captured CO₂, while also evaluating the implications of producing these chemicals domestically, instead of importing them.
Methanol and urea are among the most-used chemicals in Indian industries. In financial year (FY) 2021−22, their consumption was 2.55 million metric tonnes (MMT) and 34.2 MMT, respectively. The domestic production of these chemicals is limited and dependent on fossil fuels (for their synthesis). In 2021–22 alone, 2.4 MMT of methanol and 9.1 MMT of urea were imported, for which India spent INR 7,380 crore and INR 47,170 crore, respectively. The demand for methanol and urea is expected to soar to 4.2 MMT and 53.5 MMT, respectively, by 2030 (Ministry of Road Transport & Highways, 2017).
Delving into the key techno-economic aspects of methanol and urea production from captured CO₂, this study undertakes a comprehensive investigation to evaluate the production technologies, considering raw material requirements, process methodologies, operational parameters, and efficiency metrics. A thorough examination of investment and operating costs—including the calculation of levelised costs— is also undertaken to provide insights into the economic feasibility of the production processes. Further, a nuanced impact analysis is performed to evaluate the potential impact of replacing the traditionally manufactured or imported chemicals with the methanol and urea derived from the captured CO₂. This entailed an examination of the required investment, payback periods, profitability aspects, and the overall economic implications, offering valuable insights into the viability and feasibility of adopting alternative methods for chemicals production.
