Turning emissions into green methanol to support energy transition in Iceland and beyond 

Landsvirkjun and the German investment company PCC SE are jointly exploring the feasibility of capturing and utilizing carbon emissions from PCC’s silicon metal plant at Bakki to produce green methanol. Green methanol will play a role in mitigating climate change by replacing fossil fuel in ships and other industries.

PCC SE aims for their silicon metal plant at Húsavík to become carbon neutral by replacing fossil carbon reductants in their production with renewable alternatives. The plant at Bakki emits about 260,000 tonnes of carbon dioxide annually due to the nature of the chemical reaction that reduces quartzite (SiO₂) with a carbon reductant to produce silicon metal. Catching and utilizing the emitted renewable carbon to produce green methanol would improve the carbon footprint of ships and industry utilizing such fuel and on top improve the carbon footprint of PCC’s silicon metal plant beyond carbon neutrality. Furthermore, the nature of silicon metals is such that without it, we would neither see the current stellar performance of solar power in the European Union, nor innovative solutions such as next generation battery anodes, which are key to higher capacities.

Hörður Arnarson, CEO Landsvirkjun:
“We at Landsvirkjun welcome the opportunity to collaborate on a green solution with a good customer. The energy transition is urgent, especially in the fleet. If we can use our renewable electricity to produce green methanol at PCC BakkiSilicon, we are one step closer to a green future.”

Peter Wenzel, CEO PCC SE:
“We are ready to take the next step at PCC BakkiSilicon; capture carbon emissions from our production and utilise for the energy transition. Our operations are already on track for carbon neutrality, but the production of green methanol, which can be used as maritime fuel, would certainly be a milestone.”