Green Methanol Market: Current Analysis and Forecast (2024-2032)

Green Methanol Market Size & Forecast

The Green Methanol Market was valued at USD 437.2 billion in 2023 and is expected to grow at a robust CAGR of around 53.8% during the forecast period (2024-2032).

Green Methanol Market Analysis

The global green methanol market is a rapidly growing market due to the increasing demand for sustainable and renewable energy sources. Green methanol is a more sustainable and functionally equivalent alternative to conventional methanol, and demand is expected to grow significantly as the world focuses on reducing carbon emissions. Metanex, the world's largest methanol producer, estimates that global methanol demand will be about 88 million tons in 2022, and is expected to increase by about 3%, or more than 14 million tons, over the next five years. A gradual switch to renewable methanol will support this increase. Demand for green methanol is projected to grow substantially on the back of its growing popularity, primarily as a marine fuel, as the world focuses on cutting down carbon emissions.

Green Methanol Market Trends

This section discusses the key market trends that are influencing the various segments of the green methanol market, as identified by our team of research experts.

Growing Adoption of Green Methanol in Maritime and Heavy Industries

The green methanol market expands through growing acceptance as a low-carbon alternative fuel from maritime and heavy industries. The shipping industry invests in green methanol-powered vessels under the International Maritime Organization (IMO) 2050 decarbonization goals to achieve lower CO₂ emissions. Green methanol enters production facilities of the chemical energy and automotive industries to enhance their sustainability. The commercial viability of methanol keeps improving because of two factors: rising biomass-derived and carbon-recycled methanol availability, together with enhanced methanol synthesis technologies.

Green Methanol Industry Segmentation

This section provides an analysis of the key trends in each segment of the global green methanol market report, along with forecasts at the global, regional, and country levels for 2024-2032.

The Transportation Segment Holds the Largest Share of the Green Methanol Market.

Based on end-user, the green methanol market is divided into transportation, power generation, and industrial feedstock segments. The transportation segment acquired a significant share of the Green Methanol market and is expected to showcase a substantial growth rate during the forecast period. Green methanol is used as an energy carrier for storing renewable electricity and transportation fuel.

The automotive industry uses green methanol as a fuel because of its high-octane rating and the highest hydrogen-to-carbon ratio of any liquid fuel. Several projects are underway to develop innovative processes to convert CO2 into renewable methanol. This makes the production of green methanol from CO2 hydrogenation easier, more energy, and cost-efficient. For instance, Berlin-based climate technology startup C1 has announced the launch of the Leuna100 project with its partners. The aim of this project is the scalable production of market-ready green methanol for marine and aviation applications.

Europe is expected to grow with a Significant CAGR during the Forecast Period.

Europe is expected to attain a prominent share in the global Green Methanol Market during the forecast period, owing to stringent low-carbon fuel policies implemented across several European countries to reduce carbon emissions from fossil fuels and, in turn, meet zero-carbon targets. Europe dominates the green methanol market due to the presence of several leading companies, such as Carbon Recycling International (CRI), European Energy, and Liquid Wind AB, in the region.

In 2023, the European Parliament and the European Council agreed to increase the maritime transport sector`s contribution to the European Union Green Deal, which aims to reduce greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels, and reach climate neutrality by 2050. Almost all forms of methanol are expected to play a crucial role in decarbonizing the shipping sector by 2050, and much greater quantities of fully sustainable green methanol will be available as capacities scale up.

Massive Green Methanol projects are being undertaken in the region with companies such as Vordingborg Biofuel ApS (300,000 mt/year), Dow (200,000 mt/year), Enerkem (220,000 mt/year) and Vycat & Hynamics (200,000 mt/year) constructing the highest capacity rated green methanol plants in Europe.

Germany Dominates the North American Green Methanol Market:

Germany is another important market for green methanol in Europe. Rising natural gas prices have increased the country's demand for renewable methanol to meet the growing demand for formaldehyde in wood processing sectors such as automotive panels, plywood, and laminate flooring.

Germany is one of the largest producers of new biopharmaceuticals. Growing environmental concerns, technological advancements, and government support and regulation of environmentally friendly supplies and processes are the major factors driving the growth of the German methanol market. Methanol is now increasingly used in production in a wide range of end-use fields.

BASF started a green methanol plant at Ludwigshafen, Germany, in 2020 using feedstock such as Generation Raw Materials and Waste. Furthermore, the construction of various green methanol plants in the country with companies such as Wacker Chemie and Linde (15,000 mt/year), ZASt (6,000 mt/year), Hy2Gen (61,000 mt/year) and Dow (200,000 mt/year) would surge the market of green methanol in the coming years.

Green Methanol Industry Overview

The green methanol market is competitive and fragmented, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Advanced Chemical Technologies, BASF SE, Carbon Recycling International, Enerkem, Fraunhofer, Innogy (E.ON.), Nordic Green (Fjordkraft Holding), OCI N.V., Sodra, Uniper SE (German Federal Government)

Recent Developments in the Green Methanol Market

• In January 2024, BASF announced a new collaboration with Envision Energy, a green technology provider. Both companies collaborated to develop an advanced and dynamic process design to convert green hydrogen and carbon dioxide into e-methanol.

• In December 2023, Perpetual Next Company announced the development of the second biomethanol production plant in Estonia. The plant, which will have a production capacity of 220 kilotons, is estimated to come into operation by 2027.

• In December 2023, Cepsa and C2X Companies announced a joint project to establish a new production plant to produce green methanol with an investment of over USD 1 billion. With this capacity expansion plan, the company will align itself to meet the global demand for green methanol coming from shipping sector, aviation, chemicals, and others.

Green Methanol Market Report Coverage

Reasons to Buy the Green Methanol Market Report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.

• The report briefly reviews overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional-level analysis of the industry.

Customization Options:

The global green methanol market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.