Pape Family Enterprises

Piston Papeanol

(Methanol as Fuel for Cars M85 aka Racing Gas)

papefam.org

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EXECUTIVE SUMMARY

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Executive Summary: Pape Family Enterprises – Replace Fossil Fuel for Automobiles but it could be used for Power Generation as well.

Organization Name: Piston Papeanol
Website: papefam.org
Legal Structure: 501(c)(3) Nonprofit Organization (Pending)
Mission: To transform America’s reliance on Fossil Fuels for Automobile travel and even for power generation as we transition to solar, wind, tidal, and geo-thermal to name a few.  Automobile travel will be carbon neutral or carbon negative with the ultimate goal in mind of combating climate change.

 

Business Model Roadmap: Methanol Production & Distribution
 

1. Greenhouse Gas Emissions: Methanol vs Ethanol vs Gasoline
 

• Gasoline (91 octane, with ~10% ethanol):

  • Lifecycle CO₂ emissions: ~95–100 gCO₂/MJ

  • Even with 10% ethanol, gasoline remains carbon positive, since petroleum extraction, refining, and combustion dominate.

• Ethanol (corn-based U.S. standard):

  • Lifecycle CO₂: ~55–70 gCO₂/MJ (varies with farming efficiency).

  • Best-case (cellulosic ethanol): ~15–30 gCO₂/MJ.

  • Still not carbon-neutral, especially when factoring fertilizer use and land change.

• Methanol (from carbon capture):

  • If produced from captured CO₂ + green hydrogen (electrolysis with renewable power):

    • Lifecycle CO₂: ~ -10 to +5 gCO₂/MJ (carbon-neutral to carbon-negative).

  • Burning methanol simply re-releases the CO₂ originally captured, so the cycle can be near zero.

  • If CO₂ is taken from hard-to-abate sectors (cement, steel, etc.), the balance can go negative.
     

👉 Key Selling Point: Compared to gasoline (~100 gCO₂/MJ), methanol can be 90–110% cleaner on a lifecycle basis.
 

2. Methanol from Carbon Capture & Licensing Patents Core Technology Pathways
 

• Carbon Recycling International (CRI, Iceland):

  • World’s first “power-to-methanol” plant. Captures CO₂ + uses green hydrogen.

  • Patents around catalytic conversion of CO₂ + H₂ → CH₃OH.

• Liquid Wind (Sweden):

  • Building large-scale CO₂-to-methanol projects. Focus on shipping fuel.

• Climeworks (Switzerland):

  • Direct Air Capture (DAC) paired with methanol synthesis (partners with CRI).

• Carbon Clean / LanzaTech (U.S. based):

  • Capture from steel/cement flue gases, convert CO₂ and syngas to fuels.
     

👉 Licensing Strategy:
 

• Approach CRI or Liquid Wind for licensing catalyst + reactor IP.

• Pair with a DAC partner (Climeworks or Carbon Clean) to source CO₂.

• Build modular “methanol reactors” attachable to high-emission plants.
   

3. Distribution Advantage
 

• No New Infrastructure Needed: Methanol can be dispensed through existing gas stations, stored in standard tanks at ambient pressure and temperature.

• Blending Flexibility:

  • M15 (15% methanol blend) is already tested and compatible with nearly all modern engines.

  • M85 (like E85) works in flex-fuel vehicles with small ECU adjustments.

• Comparison to Hydrogen / EV:

  • Hydrogen requires -253°C cryogenic storage or 700 bar compression.

  • EVs need full grid and charging buildout.

  • Methanol fits in the existing liquid-fuel supply chain.
     

👉 Key Selling Point: Unlike EVs or H₂, methanol is a plug-and-play green fuel.
 

4. CO₂ Sources: Where We’d Capture
 

Methanol plants can “bolt on” to CO₂-heavy industries. Example yields:

• Cement Plants: ~0.9 ton CO₂ per ton cement → enough to make ~1,000 liters methanol/ton CO₂.

• Steel Mills: ~1.8 tons CO₂ per ton steel → ~2,000 liters methanol/ton CO₂.

• Petrochemical (plastics, paint, resins): Large CO₂ byproducts.

• Ammonia / Fertilizer Plants: ~2 tons CO₂ per ton ammonia.

• Refineries / Power Plants: Large steady CO₂ streams, perfect for capture.
   

👉 These industries are under pressure to cut emissions. If you install carbon capture + methanol units:
 

• They lower their reported CO₂ emissions.

• You get cheap CO₂ feedstock (often free) because they want the “green credit.”
   

5. Cost Structure & Retail Price per Gallon
 

Production Cost of Green Methanol

• Current pilot projects: $800–1,000 per ton methanol (~$3–4/gallon).

• With CO₂ provided free from polluters + cheaper renewable hydrogen:

  • Could fall to $400 per ton ($1.50–2.00/gallon).

• By comparison:

  • Gasoline wholesale ~ $2.20–2.80/gallon.

  • Ethanol wholesale ~ $1.40–2.00/gallon.

Retail Pricing

• If you produce at $1.50–2.00/gallon, add:

  • Distribution/retail markup: +$0.50–0.80

  • Taxes: +$0.30–0.60 (varies by state)

• Retail Price Range: ~$2.50–3.00/gallon → cheaper or competitive with gasoline.
   

👉 If carbon credits are sold alongside fuel, you can even sell below gasoline cost and still profit.
 

Summary Roadmap

1. Prove Emission Benefit: Methanol from CO₂ + H₂ is near carbon-neutral or carbon-negative.

2. Secure Licensing: Partner with CRI/Liquid Wind for methanol synthesis IP, Climeworks/Carbon Clean for capture.

3. Pilot Partnerships: Target cement and steel plants — install bolt-on CO₂ → methanol reactors.

4. Leverage Distribution: Sell into existing gas stations as M15/M85 blends, no major infrastructure change.

5. Cost Advantage: With free CO₂ + renewable H₂, you can produce at ~$1.50–2.00/gal and retail at ~$2.50–3.00/gal.

 

1) Why is green/e-methanol expensive right now?
 

Short answer: power, hydrogen, and capture dominate.
 

• Electricity → hydrogen (electrolysis): The single biggest cost driver. Recent TEAs find electricity accounts for ~30–50% of e-methanol’s cost, depending on location and power price; electrolyser CAPEX is another major chunk. ScienceDirectNREL DocsIEA
   

• CO₂ supply:
   

  • From point sources (cement, steel, refineries, ethanol plants) typical capture costs are ~$40–$120/tCO₂; highly concentrated streams (e.g., fermentation) can be as low as $15–$25/tCO₂. IEA

  • From direct air capture (DAC) today ranges widely; hundreds of $/tCO₂ (often $400–$1,000/t), though some roadmaps target much lower over time. World Resources InstituteIlluminemIEA
     

• Synthesis plant + balance of plant: MeOH loop, CO₂ compression/purification, water treatment, storage, etc., plus financing. (Example data point: the new 42-kt/yr Kassø e-MeOH plant in Denmark cost ~€150M to build.) Reuters
   

2) “Did I get that number from a current producer?”
 

Live producers rarely publish a firm $/ton, but there are real commercial datapoints and credible ranges:
 

• European Energy’s new Kassø e-methanol plant (42,000 t/yr) says parity with fossil methanol is expected around 2035, implying current costs are above fossil methanol spot. Reuters

• Forward-looking analyses bracket e-MeOH production costs roughly as:
   

  • ~€1,200–1,500/t in 2020 best sites, improving to €600–680/t by ~2030 at the very best sites with cheap renewables; long-run potential €390–430/t (2040) and €315–350/t (2050). (Energy & Environmental Science, 2024.) RSC Publishing

  • Other 2025 studies show $0.94–$2.40/kg ($940–$2,400/t) today depending on solar/wind, electrolyser, and CO₂ source. Taylor & Francis Online
     

So when I quoted high costs before, that’s aligned with today’s early plants and with peer-reviewed ranges; precise “producer quotes” aren’t public, but the Reuters Kassø plant statement + TEAs set expectations. ReutersRSC PublishingTaylor & Francis Online
 

3) Do emitters charge you for their CO₂? (Who pays?)
 

Models vary, but common patterns:
 

• Point-source host (cement/steel/ethanol/landfill/biogas/waste-to-energy): Typically they don’t “charge” for the molecules; the real cost is the capture unit (capex/opex) and utilities space. Partners often strike offtake/credit-sharing deals (e.g., share LCFS credits, 45Q, or provide steam/power). Capture cost bands above are the right planning numbers. IEA

• Policy support helps close the gap:

  • 45Q (U.S.) now provides $85/tCO₂ for point-source capture and $180/tCO₂ for DAC; recent 2025 changes expand parity across utilization vs. storage for new projects. (Confirm with tax counsel, but this is the headline.) Global CCS InstituteCarbon Capture Coalition

  • California LCFS credits add revenue per ton of life-cycle CO₂e reduced; 2025 weekly averages have been hovering ~$55–$75/ton. California Air Resources Boardstillwaterpublications.com
     

Net: emitters usually don’t bill you for CO₂; you shoulder or co-finance capture + benefit-share the credits.
 

4) How much do gas stations make per gallon—and how could we beat it?
 

• Typical U.S. station economics: Average gross margin ~30–35¢/gal on gasoline; after fees (notably credit cards) net profit often single-digits to low-teens cents/gal. (NACS data). Convenience+1

• Our pitch: Offer ~20–30¢/gal guaranteed margin (or ≥5% of pump price), co-marketing, and cap-ex-light conversion to sell M85/e-MeOH blends. That exceeds many stations’ net on regular gasoline and gives them a “green” brand edge.
   

5) Los Angeles taxes—how would M-based fuel be taxed? (Using E85 as a proxy)
 

California (as of July 1, 2025):
 

• Gasoline excise tax: 61.2¢/gal (for comparison). CDTFA

• Sales tax on fuels: For gasoline, 2.25% + applicable district taxes. For E85 and other alcohol fuels, standard local sales tax applies (no special reduced rate). LA City combined rate = 9.75% today. CDTFA+1

• Ethanol/Methanol blends tax (state excise): If your fuel is ≤15% gasoline (e.g., M85), California applies the Use Fuel Tax at $0.09/gal (one-half the base 18¢/gal). That’s the E85/M85 “worst-case tax” structure you asked to use. CDTFACDTFA
   

Possible federal piece: IRS rules impose a “backup tax” of $0.244/gal on any liquid delivered into a highway vehicle tank that isn’t otherwise taxed as gasoline/diesel/kerosene. Depending on how your methanol blend is registered/treated federally, this could apply; structure matters, so plan with counsel. IRS
 

What does that mean at the pump (LA example)?
 

Let’s translate production cost → retail using M85-style taxation (state $0.09/gal use fuel tax and 9.75% sales tax). Assume $0.30/gal distribution + $0.20/gal station margin. (Two scenarios; sales tax applied to subtotal including the state excise.)

• If you produce at $1,200/t (≈ $3.60/gal):
  Pump ≈ $4.60/gal (or $4.87/gal if the $0.244/gal federal backup tax applies).

• If you produce at $1,500/t (≈ $4.50/gal):
  Pump ≈ $5.59/gal (or $5.85/gal with federal backup tax).

(Conversions: 1 tonne MeOH ≈ 333.6 gal; prices computed from peer-reviewed/industry cost ranges above.) RSC Publishing
 

6) Will LA/California “react” differently to carbon-neutral methanol?
 

• Taxes: Expect the same statutory structure as E85/M85 until legislation changes. (There’s precedent for LCFS credits improving project economics rather than changing taxes.) California Air Resources Board+1

• Credits + claims: If your pathway achieves a low Carbon Intensity (CI) in CA-GREET, you generate LCFS credits on every gallon sold in California—this is material to the business case. California Air Resources Board
   

What this means for the "Papeanol" business model
 

• Cost today: Early e-MeOH from point-source CO₂ + cheap renewables can plausibly sit ~$1,200–$1,800/t (≈ $3.60–$5.40/gal factory gate). DAC-based e-MeOH trends higher until DAC falls further. RSC PublishingTaylor & Francis Online

• Biggest lever: Power price & availability (PPA at <$30/MWh, high capacity factor or firmed supply), + electrolyser CAPEX/O&M. Co-locate near low-cost renewables and cheap/clean CO₂ (biogas upgrading, ethanol fermentation, WtE) to lower capture costs. ScienceDirectIEAReuters

• Policy stack: 45Q + LCFS can shave effective cost by $0.50–$1.50/gal-equivalent, depending on CI score and captured tonnage allocation. (Numbers depend on your pathway’s CI and prevailing LCFS/credit prices.) Global CCS InstituteCalifornia Air Resources Board

• Retail strategy: Offer stations better per-gal margin and co-invest in minimal forecourt upgrades for M85. Use “carbon-neutral” branding only when your LCA supports it (CA-GREET pathway).
   

Name                              Value                    Notes

DiscountRate                  0.080                    Real discount rate (fraction, e.g., 0.08 = 8%)

PlantCapacity                 42000.000            t MeOH per year

ElzCapex                        800.000                $/kW

ElzLife                             15.000                   years

ElzUtil                              0.450                    capacity factor (0–1)

ElzOMpct                        0.020                    fraction of CAPEX per year

StackPct                          0.300                    fraction of CAPEX per replacement

StackInt                           7.000                    years between replacements

kWhPerKgH2                 52.000                  kWh/kg H2 (incl. BOP)

CaptureCapex               200.000                $ per tCO2/yr capacity

CaptureLife                    20.000                   years

CaptureOMperT            35.000                  $/tCO2 captured

CapturekWhPerT          150.000                kWh/tCO2

SynCapex                      1200.000              $ per t MeOH/yr capacity

SynLife                            20.000                  years

SynOMpct                      0.040                    fraction of CAPEX per year

SynkWhPerT                  200.000                kWh/t MeOH

SolarCapex                   1200.000               $/kWdc

SolarLife                        25.000                  years

SolarCF                          0.220                    capacity factor (0–1)

SolarOMperkWyr         15.000                  $/kW/yr

SolarDegPct                  0.005                    fraction per year (0.005 = 0.5%)

SolarBOS                       200.000                $/kWdc (adders: land/BOS/etc.)

OtherkWhPerT              50.000                  kWh/t MeOH

DistPerGal                      0.300                   $/gal distribution

MarginPerGal                 0.200                   $/gal station margin

ApplyTaxesFlag             1.000                    1=yes, 0=no

UseFuelExcise                0.090                   $/gal (CA use-fuel, E85/M85 proxy)

LASalesTaxPct                0.098                    fraction (0.0975 = 9.75%)

ApplyFedBackupFlag    0.000                   1=yes, 0=no

FedBackup                      0.244                   $/gal

 

Name                               Value                   Notes

GalPerTonne                  333.551                gal/t MeOH

H2_PER_T                      187.500                 kg H2 per t MeOH

CO2_PER_T                   1.373                     t CO2 per t MeOH

 

Metric                                                           Value

Solar LCOE ($/kWh)                                    $1.040

Annual kWh (GWh/yr)                                 428.652

Electrolyzer size (MW)                                103.881

Required Solar size (MWdc)                       222.979

Electrolyzer $/kg H2 (CAPEX+O&M)        2.050

Electricity $/kg H2                                       0.020

Total $/kg H2                                               2.070

H2 cost per t MeOH ($/t)                           388.125

CO2 capture cost per t MeOH ($/t)          50.000

Synthesis cost per t MeOH ($/t)                45.000

Other electricity per t MeOH ($/t)             52.000

Total plant-gate cost ($/t MeOH)              535.125

Total plant-gate cost ($/gal)                     $1.604

Distribution + margin ($/gal)                    $0.500

Pre-tax subtotal ($/gal)                              $2.104

Taxable base ($/gal)                                  $2.194

LA sales tax ($/gal)                                     $0.214

Estimated production price ($/gal)          $2.408

Gas Station Propietor Profit                      $0.50

Total Estimated Price at Pump                  $2.91

 

 

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