Sector Coupled Systems for Heat, Industry, Fuels and Transport in Chile

The "SHIFT" Project was one of our many exciting initiatives in collaboration with international research institutions, including Fraunhofer CSET in Chile. We evaluated existing biogenic CO₂ sources in Chile for the production of low-carbon molecules focusing on sector-coupled systems for heat, industry, fuels, and transport. The project developed innovative production pathways, with various process steps, including syngas-production and downstream synthesis, assessing their techno-economic potential to reduce production costs and improve efficiency across the value chain.

Initial Situation

The decarbonization of hard-to-abate sectors such as aviation, shipping, and chemicals faces substantial economic barriers. High upfront capital investment costs (CAPEX) and elevated levelized costs of production (LCoX) combined with challenging project offtake and an immature regulatory framework, have slowed the commercial deployment of hydrogen and its derivatives, including methanol, DME, and sustainable aviation fuels (SAF). Meanwhile, abundant biogenic CO₂ – from biogas, bioethanol, landfills, wastewater, and biomass – offer a strong near-term potential but remains underutilized. Unlocking this potential can help overcome current cost and deployment barriers. This project evaluates scalable, cost-efficient pathways integrating biogenic gases with renewable hydrogen, leveraging existing infrastructure to accelerate low-carbon molecule production and support the energy transition.

Objective

The "SHIFT" project aimed to develop first-mover concepts for low-carbon molecules based on biogenic resources, optionally combined with green hydrogen (H₂) based on renewable electricity. It evaluated innovative methanol production pathways are assessed through techno-economic analysis and site assessments, identifying scalable, cost-efficient solutions that leverage existing infrastructure and enable rapid deployment.

Approach

• GIS-based site analysis: Mapping suitable locations considering feedstock, infrastructure, and proximity to off-takers.
• First-mover concept development: Identification and assessment of biogenic- and biomass-derived routes to methanol, DME, and SAF (Methanol-to-Jet).
• Process development: Process simulation, design and optimization of syngas production using Aspen Plus^®, based on real case studies with favorable CO₂/CH₄ ratios, as well as downstream synthesis pathways to identify scalable and cost-effective solutions.
• Techno-economic assessment: Quantification of production costs with Aspen Plus^® and in-house cost models to evaluate economic feasibility.
• Practical implementation: Deployment of developed production concepts for first-mover applications using existing infrastructure.

Results

The "SHIFT" project evaluated the biogas-to-bio-methanol pathway as a near-term low-carbon solution. Methanol’s versatility as a chemical feedstock, liquid fuel, and energy carrier, together with the possibility to leverage existing infrastructure, makes it a practical first-mover option during the hydrogen ramp-up. Our preliminary techno-economic analyses show about 30% reduction in CAPEX compared to conventional Power-to-X (PtX) routes i.e., typical green hydrogen-based synthetic production pathway, which makes it an attractive option today while we scale up green hydrogen technologies. These findings highlighed the pathway’s scalability, cost-efficiency, and potential to accelerate the deployment of low-carbon molecules.