Global Green Methanol Market Size is valued at USD 2.3 Billion in 2024 and is predicted to reach USD 42.3 Billion by the year 2034 at an 33.5% CAGR during the forecast period for 2025-2034.
A low-carbon molecule called "green methanol" is made by burning biomass, using clean power, or capturing carbon dioxide (CO2). Green methanol is an environmentally beneficial substitute for traditional chemicals and fossil fuels. Like regular methanol, it has a variety of end uses in the chemical, power generating, automotive, construction, etc. industries.
The main factor driving the worldwide green methanol market is strict environmental rules that restrict carbon dioxide emissions in order to lessen pollution and global warming. For use in transportation, energy production, and industrial services, there has been a surge in the consumption of gasoline, diesel, and other chemicals in recent years.
Augmented emissions of greenhouse gases such as carbon dioxide, nitrous oxide, sulfur dioxide, and particulate matter have been the effect of this. As a result, strict environmental laws were imposed by various nations and international regulatory bodies to reduce greenhouse gas emissions. Various NGOs, in addition to governments, support the usage of green methanol. The market for green methanol is expected to grow rapidly as a result of all these factors.
However, the green methanol market is expected to grow slowly due to the high installation costs involved in producing green methanol. One of the primary references when choosing the location of a green methanol-generating plant is ensuring an unbroken supply of feedstock. The plant's location is the primary determinant of the expenses associated with producing green methanol.
Competitive Landscape:
The key players in the green methanol market are:
- P. Moller – Maersk
- ABEL Energy Pty Ltd.
- Advanced Chemical Technologies
- BASF SE
- Carbon Recycling International (CRI)
- Enerkem Inc.
- European Energy, Eni S.p.A.
- Fraunhofer GmbH
- GIDARA Energ
- Glocal Green
- HIF Global
- Innogy SE
- Liquid Wind AB
- Methanex Corporation
- Mitsubishi Gas Chemical Company, Inc. (MCG)
- Nordic Green ApS
- OCI N.V.
- Saudi Basic Industries Corporation
- Sodra Skogasagarma
- Southern Green Gas Limited.
- Synhelion SA
- Uniper SE
- Vertimass LLC
- WasteFuel
Market Segmentation:
The green methanol market is segmented by feedstock, derivative, applications. Based on feedstock, the market is segmented as biomass, green hydrogen, carbon capture & storage. As per the derivative segment, the market is further segmented as formaldehyde, gasoline, green methanol-to-olefins/green methanol-to-propylene, methyl tert-butyl ether, acetic acid, dimethyl ether, methyl methacrylate, biodiesel, others. The market is segmented by application: chemical feedstock, Fuel, other applications.
Based On The Feedstock, The Biomass Segment Accounts For A Major Contributor In The Green Methanol Market
Green methanol from biomass holds the highest market share because it is widely available and renewable in nature. Biomass, which is a by-product from agricultural residues, forestry residues, and other bio-based materials, offers green and diversified feedstock for methanol production. It reduces the usage of waste and greenhouse gas emissions, as desired by the environment. Moreover, innovations in biomass conversion technology have been developed to make production efficient and cost-effective. These conditions combined make biomass a promising and dominant feedstock in the green methanol industry.
The Fuel Segment Witnessed Growth At A Rapid Rate
The green methanol market's fuel segment is expanding aggressively due to tighter environmental policies such as the IMO sulfur cap and the EU's "Fit for 55" package, which compel sectors towards greener fuels. As numerous countries are aiming for net-zero emissions, green methanol is central to carbon neutrality endeavors. Technological improvements, such as Carbon Capture and Utilization (CCU) and electrolysis, have improved production efficiency and economics, while enhanced scalability increases green methanol's feasibility for mass fuel utilization.
In the North America, the green methanol market holds a significant revenue share in the region.
The North America green methanol market is expected to register the highest market share in revenue in the near future. Demand for green methanol is anticipated to rise in the region as methanol consumption increases quickly in the building, automotive, and electricity generation sectors. To encourage green methanol, major market participants in these nations are working with businesses in the automotive, construction, and other industries. In addition, Europe is projected to grow rapidly in the global green methanol market because of rising investments in R&D, the existence of a mature end-user industry, and the accessibility of substantial biomass supplies. As the most significant producer of biofuels in the world, the United States uses more renewable energy to produce electricity.
Recent Developments:
- In Feb 2023, A Memorandum of Understanding (MoU) was signed by Uniper and Greenko ZeroC Private Limited, allowing Uniper to engage in exclusive talks for the offtake of green ammonia from Phase 1 of Greenko ZeroC's ammonia manufacturing facility in Kakinada. According to the MoU, Greenko and Uniper seek to establish a supply, tenure, and price structure that is unique in the industry for a supply and purchase agreement for 250,000 tonnes of green ammonia annually (GASPA) based on the Heads of Terms.
- In June 2022, Following the completion of the technical verification of the gasification of forest wastes for the manufacture of renewable methanol for shipping, Cortus Energy has engaged in a term sheet with the Norwegian firm Glocal Green AS. The Norwegian shipping sector believes that renewable methanol is the best method to phase out fossil fuels and safeguard the industry's future.
Green Methanol Market Report Scope
|
Report Attribute |
Specifications |
|
Market size value in 2024 |
USD 2.3 Bn |
|
Revenue forecast in 2034 |
USD 42.3 Bn |
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Growth rate CAGR |
CAGR of 33.5% from 2025 to 2034 |
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Quantitative units |
Representation of revenue in US$ Bn, Volume (Kiloton) and CAGR from 2025 to 2034 |
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Historic Year |
2021 to 2024 |
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Forecast Year |
2025-2034 |
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Report coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments covered |
Feedstock, Application, Derivative |
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Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South Korea; South East Asia; |
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Competitive Landscape |
BASF SE,Advanced Chemical Technologies, Uniper SE, Fraunhofer GmbH, Enerkem Inc., Innogy SE, Nordic Green ApS, Vertimass LLC, Saudi Basic Industries Corporation, and Södra Skogsägarna |
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Customization scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing and available payment methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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