Iceland is not typically known for large-scale industry, but Carbon Recycling International (CRI) stands out for its approach to some of today’s environmental challenges. Established in 2006, this Reykjavík-based company uses carbon dioxide and hydrogen, often collected from industrial processes, to create a renewable fuel known as methanol. This process goes beyond simply capturing emissions; it converts them into a useful substance, helping address pressing concerns about climate change and energy use.
From laboratory to commercial plants
CRI’s first production facility opened in 2011 near the Svartsengi geothermal power station, close to the Blue Lagoon. The plant, named after the chemist George Olah, produces up to five million litres of methanol per year. About 10 percent of the carbon dioxide from Svartsengi’s operations is captured and transformed at this location. The company calls its technology Emissions-to-Liquids (ETL), and its fuel is trademarked under the name Vulcanol.
Methanol itself is a versatile chemical. It can be used as a transport fuel, as a starting material for other fuels, or as an ingredient in the production of plastics and other substances. It is compatible with existing engine designs and can even power vessels like ships and trucks. Research and demonstrations in both Europe and China have explored or implemented its use in vehicles, often as a cleaner alternative to traditional fuels.
A global impact rooted in Icelandic innovation
The Icelandic experience has extended far beyond the country’s borders. CRI has participated in European Union research projects demonstrating the technical feasibility and practical benefits of renewable methanol. Pilot projects in Sweden and Germany have used emissions from industrial plants to produce methanol, integrating this process with renewable electricity and a variety of industrial gases. Results showed not only efficient conversion but also the ability to absorb the variability of solar and wind power by storing their output as liquid fuel.
CRI’s reach continues into Asia. In 2022, the company commissioned a facility in Anyang, China, capable of recycling 160,000 tons of carbon dioxide annually and producing 110,000 tons of methanol. This output has been used to power heavy vehicles and played a role in the 2023 Asian Games. Another recent CRI plant in Jiangsu province turns industrial waste gases from nearby factories into 100,000 tons of methanol each year, which then becomes components for solar panels and other products.
Renewable methanol does not rely on agricultural feedstocks. Its manufacture depends instead on captured carbon dioxide and hydrogen extracted by splitting water, often powered by renewable sources. The European Union recognises this type of fuel as a renewable alternative, and methanol’s chemical properties make it a practical way to store and move energy, especially when compared to gaseous fuels.
By addressing how emissions from today’s industries can become an energy resource for tomorrow, CRI reflects wider Icelandic trends in clean technology and environmental action. The company plans to scale up its operations by building larger plants capable of producing even greater quantities of renewable methanol, reinforcing the connection between Icelandic expertise and global concerns.
