Renewable Methanol Market Size, Share & Trends Analysis Report, By Application (Fuel, Chemical Feedstock, Other Application), Methanol Type (Bio-Methanol and E-Methanol), End-user industry (Transportation/Mobility, Chemical Industry, Power Generation, Other End-Use Industry), By Region, Forecasts, 2025-2034

Global Renewable Methanol Market Size is valued at USD 1475.6 Mn in 2024 and is predicted to reach USD 118868.0 Mn by the year 2034 at a 55.2% CAGR during the forecast period for 2025-2034.

Renewable methanol is second-generation methanol made from renewable energy sources such as biomass and industrial waste. It is a critical input in the production of biodiesel, which is used as a chemical feedstock or blended into automobile fuels. Renewable methanol is made in the same way as conventional methanol, but instead of carbon monoxide, carbon dioxide is used. It has a high octane rating due to the high hydrogen-to-carbon ratio and aids in reducing greenhouse gas emissions.

The global renewable methanol market expansion is driven by a rise in carbon dioxide emissions coupled with severe environmental laws to lessen the impact of carbon dioxide. This aspect is predicted to stimulate demand for renewable methanol, which will be used in transportation and industry.

However, the ongoing COVID-19 epidemic has hampered methanol market growth by disrupting construction activities and halting the expansion or new building of facilities and factories. In addition, industries like construction, paints and coatings, electronics, and packaging have experienced unexpected disruptions in operating efficiencies and value chains as a result of the closure of national and international borders for travel and commerce. 

Competitive Landscape:

Some Of The Renewable Methanol Market Players Rre:

• Advanced Chemical Technologies, Inc.
• BASF SE
• Carbon Recycling International (CRI)
• OCI N.V.
• Eni S.p.A.
• P. Moller – Maersk
• Methanex Corporation
• Mitsubishi Gas Chemical Company, Inc. (MCG)
• European Energy
• Södra
• Enerkem
• VärmlandsMetanol AB
• Liquid Wind AB
• GIDARA Energy
• Nordic Green ApS
• Synhelion SA
• HIF Global
• WasteFuel
• Glocal GreenGlocal Green
• ABEL Energy Pty Ltd.
• Southern Green Gas Limited
• Other Market players

Market Segmentation:

The renewable methanol market is segmented based on application, methanol type and end user. The application segment includes fuel, chemical feedstock (Methanol-to-Olefins (MTO), Formaldehyde, Methyl Tert-Butyl Ether (MTBE), Dimethyl Ether (DME)) and other applications like Acetic acid, Antifreeze and Solvent. The methanol type segment comprises bio-methanol (Forestry and Agricultural Waste, Biogas/Biomass, Municipal Solid Waste (MSW), Others (Sewage and by-products)) and e-methanol. The end-user segment includes transportation/mobility, chemical industry, power generation, and other end-use industry.

Based On Methanol Type, The Bio-Methanol Segment Is A Major Contributor to The Market.

The biomethanol segment is leading in the renewable methanol market due to its established presence, lower production costs, and its ability to offer a sustainable alternative to traditional marine fuels. With increasing pressure to reduce carbon emissions in the maritime sector, biomethanol, derived from biological feedstocks like forest residue, municipal solid waste (MSW), biogas, and biomass, presents an attractive solution.

The Power Generation Segment Witnessed Growth at a Rapid Rate

The leading segment in the this market by end-use industry is Power Generation. This segment is projected to grow due to the increasing concentration on decarbonizing the energy sector. Renewable methanol can be used as a clean energy source for power generation, reducing greenhouse gas emissions by up to 80%. Additionally, it can be utilized in fuel cells to generate electricity efficiently and cleanly, making it an attractive option for industries looking to transition to renewable energy sources.

In The Region, The Asia Pacific Renewable Methanol Market Holds A Significant Revenue Share

The Asia Pacific Renewable Methanol Market dominated with the highest market share in terms of revenue owing to the increased demand for sustainable industry-grade polymers and solvents; market players in the region are investing heavily in renewable methanol. Renewable fuels are also in high need in the country's automobile and construction industries. This is because of strict government rules aimed at reducing carbon emissions from industrial equipment and vehicles. Other main reasons contributing to the country's market revenue growth include an increase in chemical industry participants, widespread availability of low-cost labor, and significant investment in the aerospace industry. In Europe, the renewable methanol industry accounted for the second-largest revenue share. The rapid adoption of greener technology and a growing emphasis on reducing carbon footprints across end-use industries in many countries around the region are underway.

Renewable Methanol Market Report Scope:

Segmentation of Renewable Methanol Market-

Renewable Methanol Market- By Application

• Fuel
• Chemical Feedstock
  • Methanol-to-Olefins (MTO)
  • Formaldehyde
  • Methyl Tert-Butyl Ether (MTBE)
  • Dimethyl Ether (DME)
• Other Applications (Acetic acid, Antifreeze, Solvent)

Renewable Methanol Market- By Methanol Type

• Bio-Methanol
  • Forestry and Agricultural Waste
  • Biogas/Biomass
  • Municipal Solid Waste (MSW)
  • Others (Sewage and by-products)
• E-Methanol

Renewable Methanol Market- By End User

• Transportation/Mobility
• Chemical Industry
• Power Generation
• Other End-Use Industry (Construction, Electronics Industry, Paints Industry)

Renewable Methanol Market By Region-

North America-

• The US
• Canada

Europe-

• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific-

• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific

Latin America-

• Brazil
• Mexico
• Argentina
• Rest of Latin America

 Middle East & Africa-

• GCC Countries
• South Africa
• Rest of the Middle East and Africa