Green Methanol Market- Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Feedstock (CO2 Emissions, Municipal Solid Waste, Agricultural Waste, Forestry Residues, and Others), By Type (E-Methanol, Bio Methanol), By Application (Fuel Grade, Chemical Feedstock, and Others), By Region and Competition Forecast 2018-2028

In 2021, global carbon dioxide emissions from fossil fuels and industry were 33.67 billion metric tonnes.

Growing Utilization of Green Methanol in Chemical Sector

In recent years, concerns about climate change and environmental sustainability have led to a growing interest in cleaner and greener alternatives across industries. The chemical industry, a major contributor to global greenhouse gas emissions, is actively seeking more sustainable solutions to meet the demand for chemicals while reducing its environmental impact. Among the promising alternatives, green methanol stands out as a key player in transforming the chemical industry.

For instance, in 2022, Green Umia project estimates to achieve a reduction of 58,000 tonnes of CO2 during its first 10 years of operation, as a result of the production of 2,900 tonnes per year of renewable methanol, which will be used by Foresa itself for incorporation into a wide variety of industries.

Moreover, conventional methanol production relies heavily on fossil fuels such as natural gas, coal, and petroleum, which are finite resources. In contrast, green methanol can be produced from a wide range of sustainable feedstocks, including agricultural waste, forestry residues, municipal solid waste, and even carbon dioxide captured from industrial processes. It reduces pressure on fossil fuel reserves and help in managing waste and controlling pollution. Furthermore, green methanol is used as a feedstock for the production of various chemical products. These chemical products are used in different verticals like transportation, construction, pharmaceutical, fertilizers and so on. The generation of formaldehyde used in paint and coating industries, Methyl-tert-butyl-ether is help in the production of biodiesel which helps to increase the use of biodiesel as alternative fuel, dimethyl ether is used as chemical solvent. The production of such chemicals helps in reducing the emission of carbon footprints and results in a green environment.

Additionally, green methanol production has seen significant advancements in technology and process efficiency. New catalytic processes and innovative reactor designs have led to higher yields and reduced energy consumption, making it a more economically viable and attractive option for the chemical industry. As these technologies continue to develop, the production cost of green methanol is expected to decrease, further accelerating its adoption. Thus, increasing awareness regarding the utilization of green methanol as a sustainable feedstock in replacement of conventional feedstock in chemical industries witness substantial growth of Global Green Methanol market in the upcoming years.

Increasing Demand for Green Methanol as Renewable Energy Storage Solution

In the pursuit of a sustainable future, renewable energy sources have emerged as a crucial component of the global energy landscape. However, harnessing the full potential of renewables like solar and wind energy presently has challenges, including intermittent generation and the need for efficient energy storage solutions. Green methanol has emerged as a promising alternative to address these challenges, revolutionizing renewable energy storage and contributing to the decarbonization of energy systems.

For instance, in 2023, according to Ministry of Power in India, NTPC Green Energy Ltd. (NGEL) and HPCL Mittal Energy Ltd. (HMEL) signed a MoU for collaboration in renewable energy through sourcing of 250 MW RE-RTC (Round-The-Clock) power to meet the requirement of HMEL and exploring opportunities in the green hydrogen business & its derivatives (green ammonia & green methanol).

Moreover, green methanol has high compatibility with existing energy infrastructure. It can be blended with traditional fossil fuels and used in internal combustion engines or converted into electricity through fuel cells. This compatibility eases the transition to renewable energy while utilizing the existing energy distribution and transportation networks. Therefore, increasing use of green methanol as renewable energy storage solution led to the growth of global green methanol market in the forecast period.

Adoption of Strict Environmental Regulations to Reduce Carbon Emission Impact

For instance, in 2023, EPA proposed Clean Air Act emission limits and guidelines for carbon dioxide (CO2) from fossil fuel-fired power plants based on cost-effective and found at control technologies.

Moreover, green methanol can be produced using carbon capture and utilization (CCU) technologies. These technologies capture carbon dioxide emissions from industrial processes and convert them into valuable products like green methanol. Stringent environmental regulations can support the adoption of CCU technologies, encouraging industries to invest in carbon capture infrastructure and facilitate the conversion of captured carbon dioxide into sustainable methanol. Thus, rising strict environmental regulations regarding the emission of CO2 and converting it into sustainable products such as, green methanol driving the growth of global green methanol market in the projected years.

Recent Developments

• In June 2023, OCI Global signed a deal to use its green methanol product for the maiden voyage of the Maersk’s world-first methanol-enabled container vessel.
• In February 2023, Methanex Corporation (Methanex) and Mitsui O.S.K. Lines, Ltd. (MOL) announced the dual-fuel vessel “Cajun Sun” successfully completed the first-ever net-zero voyage fueled by bio-methanol.
• In 2022, OMV, BASF, Thyssenkrupp joined the green methanol-to-Sustainable Aviation Fuel (SAF) project.
• In 2022, a MoU was signed between NortH₂ corporation & OCI NV to deliver green hydrogen to factories owned and operated by OCI N.V. in the Netherlands, resulting in the creation of the first large-scale, integrated green ammonia and green methanol value chain.
• In 2021, A.P. Moller - Maersk invested in California-based Waste Fuel plant to build the infrastructure for bio-refineries, allowing the business to take use of the most advanced technology available to produce bio-methanol in North America and Asia using trashes.
• In 2020, Sweden’s Minister for Enterprise Ibrahim Baylan inaugurated Södra’s plant for commercial biomethanol at the pulp mill in Monsteras.

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Market Segmentation

Global green methanol market

Company Profiles

OCI N.V., Methanex Corporation, Enerkem Inc., Carbon Recycling International, Södra Skogsägarna, BASF SE, Topsoe A/S, Liquid Wind AB, Eni S.p.A., ABEL Energy Pty Ltd., Thyssenkrupp AG, Nordic Green ApS, Mitsubishi Gas Chemical Co Inc, Southern Green Gas Limited, and SunGas Renewables Inc. are some of the key players of global green methanol market.