24 August 2026
CO₂ and water for green methanol captured directly from the air: A study from Jülich shows that this would be possible even in water-scarce regions around the world. The main factors determining costs are favourable wind and solar conditions.
Persistent heatwaves and below-average rainfall in spring and summer 2026 are causing noticeable drought, falling groundwater levels and low water levels in rivers such as the Rhine in Germany and across Europe. At the same time, producing important raw materials such as green hydrogen and methanol requires considerable quantities of water. If renewable fuels are increasingly to be produced in regions with abundant sun and wind in the future, the question therefore arises as to where this water can come from.
A study by Forschungszentrum Jülich now provides an answer: The researchers show how renewable methanol can be produced even in water-scarce regions. The carbon dioxide and process water required can be extracted together from the ambient air.
"Regions rich in sun and wind offer ideal conditions for producing green fuels - but they often suffer from water scarcity," says lead author Henrik Wenzel of Jülich Systems Analysis. This is precisely where the DryHy research project comes in. Funded by the German Federal Ministry of Research, Technology and Space and coordinated by Forschungszentrum Jülich's Institute of Energy Technologies, the project examines renewable methanol production in water-scarce regions from a holistic perspective. The newly published study assesses the process chain developed for this purpose from a techno-economic perspective.
Water and CO₂ from a single source
The concept is based on direct air capture (DAC). A filter material binds carbon dioxide while also absorbing moisture from the air. What has generally been regarded as an undesirable side effect becomes an advantage in the concept investigated: The captured water enters methanol production together with the CO₂. The researchers modelled the entire process chain, including renewable electricity generation, electrolysis, energy storage, heat utilisation and cooling without additional water consumption.
The analysis covers more than 20,000 regions in 78 countries that are expected to face at least medium water stress in 2050. In around 97 per cent of these regions, the air contains enough water over the course of the year to meet the production process's entire demand. Even at very dry locations, production would in principle be possible if the plant primarily operated during more humid hours and temporarily stored water.
Wind and sun determine the costs
"Our results show that water scarcity does not necessarily have to rule out green methanol," says Jann Weinand, head of the Integrated Scenarios department at Jülich Systems Analysis. "For low production costs, an abundant and as consistent as possible supply of renewable electricity is generally more important than high humidity." Locations with a good combination of wind and solar energy are particularly advantageous.
At favourable locations, the production costs projected for 2050 are in the range of several hundred euros per tonne; at less suitable locations, they may be several times higher. Where wind and solar resources are particularly abundant, green methanol could therefore approach today's market prices. The current European contract price is just under €1,000 per tonne. However, this comparison is only a snapshot: Market prices fluctuate considerably, while the study models future production costs. Falling technology costs and rising CO₂ prices could narrow the gap in the future.
Open question: Impacts on the local climate
The DryHy project is also investigating how the large-scale removal of water vapour could affect the local climate. While the current model examines how temperature and humidity influence the plant, this will make it possible in the future to assess potential feedback effects on humidity, clouds or precipitation. "The fact that we do not draw on local freshwater resources does not automatically mean that removing water from the atmosphere will have no consequences at any scale," says Thomas Schöb, head of the Energy System Transformation team. "Before very large plants are built, this question should be investigated for each specific location."
Model reveals potential and limitations
The study is a techno-economic modelling analysis, not an investigation of existing factories. Regional differences in financing, labour costs and infrastructure, as well as potential material shortages, are not fully taken into account. The assumed flexible operation of high-temperature electrolysis must also prove itself in continuous industrial use.
"The study does not provide a ready-made blueprint for every location," Henrik Wenzel emphasises. "But it does show the conditions under which the concept is particularly promising - and which technical and environmental questions need to be answered next."
Original publication: Direct air capture enables sustainable methanol production in water-scarce regions, by Henrik Wenzel, Thomas Schöb, David S. Sholl, Jochen Linßen, Detlef Stolten and Jann Michael Weinand, Nature Communications, August 2026, DOI: s41467-026-76865-x
