Renewable Methanol Market Synopsis

Renewable Methanol Market Size Was Valued at USD 198.9 Million in 2023, and is Projected to Reach USD 2865.07 Million by 2032, Growing at a CAGR of 34.5% From 2024-2032.

Renewable methanol is an ultra-low carbon chemical produced from sustainable biomass, often called bio-methanol, or from carbon dioxide and hydrogen produced from renewable electricity.

• Renewable methanol, created using carbon capture technology and renewable energy sources, is environmentally friendly, helping to decrease greenhouse gas emissions in alignment with international climate targets such as the Paris Agreement. Using sustainable feedstocks instead of depleting fossil resources for conventional methanol makes it an environmentally friendly option. Governments worldwide are putting in place measures such as carbon pricing, subsidies, and mandates for renewable fuels to decrease emissions.
• Renewable methanol receives advantages from these incentives, especially in environmentally stringent areas. Several nations have established objectives to boost the utilization of renewable energy, and the use of renewable methanol is helping to achieve these goals. Advancements in gasification, electrolysis, and CO2 capture technology have enhanced the manufacturing of renewable methanol, linking with the circular economy through the transformation of waste into valuable goods and cutting down on carbon emissions.
• Renewable methanol can be used for various purposes such as being an energy carrier, raw material for chemicals, and additive in traditional fuels. It has various uses like transportation, power generation, heating, shipping, and in making plastics, formaldehyde, and acetic acid. It provides a method to decrease carbon emissions without the need for significant infrastructure alterations. Businesses are establishing targets for sustainability and utilizing renewable methanol to lessen their carbon footprints. Expanding methanol sources increases supply chain resilience against fluctuating fossil fuel markets.

Renewable Methanol Market Trend Analysis

Increasing Focus on Waste-to-Methanol Technologies

• Technologies that convert waste into methanol provide a way to deal with non-recyclable waste such as municipal solid waste and industrial waste. By transforming these substances into methanol, an important chemical and fuel, the amount of waste is decreased and environmental effects are lessened. This is in line with the principles of a circular economy, where waste is seen as a valuable resource instead of a burden, helping to achieve sustainability goals by reducing waste and creating value from materials that were once considered trash.
• Waste-to-methanol procedures help reduce greenhouse gas emissions by redirecting waste away from landfills and reducing methane generation. The production of methanol from waste typically results in lower emissions compared to production from fossil fuels. Producing renewable energy and chemicals locally from waste-to-methanol technologies helps to increase energy security by decreasing dependence on imported fossil fuels. These technologies also encourage the efficient use of resources by transforming waste into methanol, particularly advantageous for areas with scarce natural resources or seeking to optimize the value of available resources.
• Using waste materials as a cheaper source for methanol production brings down the total costs of renewable methanol, which then enables it to compete with fossil-based methanol. Advancements in technology for converting waste to methanol make it easier to produce larger quantities, meeting the rising demand. Certain methods trap CO2 emissions to use as a raw material, reusing carbon and reducing the amount of CO2 in the atmosphere. Additional cost savings are anticipated as these technologies develop, boosting the economic feasibility of renewable methanol.

Opportunity

Growing Focus on Reducing Carbon Emissions

• Sustainable methanol is an environmentally friendly substitute fuel for various modes of transportation, such as land, air, and sea travel. It can be mixed with gasoline in cars or utilized in marine engines to decrease emissions, tackling the high carbon emissions in those industries. Difficulties in reducing carbon emissions in industries such as chemicals, cement, and steel, caused by high temperatures and carbon-heavy materials, can be tackled by utilizing renewable methanol.
• Government rules and rewards are pushing the acceptance of eco-friendly alternatives such as renewable methanol. The combination of carbon pricing mechanisms and subsidies for renewable fuels is incentivizing companies to cut CO2 emissions and transition to cleaner energy sources for financial gain. This is fuelling the market expansion of renewable methanol and promoting its use in different sectors globally.
• Novel Carbon Capture and Utilization (CCU) techniques utilize CO2 in the production of sustainable methanol, lowering emissions and backing a circular carbon economy. The power-to-methanol procedures are becoming more popular, utilizing sustainable electricity to generate hydrogen and merging it with captured CO2 to form eco-friendly fuel, in line with worldwide efforts to transition to renewable energy.

Renewable Methanol Market Segment Analysis:

Renewable Methanol Market Segmented based on Feedstocks, Application, End-User, And Region.

By Feedstock Type, Agricultural Waste Segment Is Expected to Dominate the Market During the Forecast Period

• A significant quantity of agricultural waste such as crop leftovers, straw, husks, and biomass is accessible but often remains unused, leading to environmental problems. Converting this waste into renewable methanol is an environmentally friendly approach to managing and valuing these leftovers. Agricultural waste can be used as a renewable resource to produce renewable methanol, in contrast to finite fossil fuels that result in the release of greenhouse gases. It guarantees a consistent provision.
• Transforming agricultural waste into methanol helps decrease air pollution and carbon emissions from burning waste, leading to improved air quality and reduced greenhouse gas emissions, particularly in developing nations. Renewable methanol produced from agricultural waste is considered carbon-neutral or carbon-negative because the absorption of CO2 by plants offsets emissions from the production process. Certain processes are able to capture more carbon than they release, especially when combined with carbon capture technology.
• Progress in gasification, pyrolysis, and fermentation techniques has increased the efficiency of converting biomass, leading to a more convenient and affordable production of renewable methanol from agricultural residues. The merging of agricultural waste with biogas production can enhance the efficiency of resource utilization. Biogas facilities process waste to create biogas, which is then used to produce methanol, improving the overall sustainability and effectiveness of the operation.

By Application, Formaldehyde Segment Held the Largest Share In 2023

• Formaldehyde, a flexible chemical, is utilized across different industries in the production of resins. These resins play a vital role in manufacturing wood products such as plywood, particleboard, and fibreboard, which are important in the construction, furniture, and automotive industries. Formaldehyde is utilized in chemical synthesis as a middle step to manufacture polyols, pentaerythritol, and MDI for applications in plastics, coatings, adhesives, and insulation.
• The construction sector is adopting sustainable methods such as incorporating environmentally friendly materials and utilizing renewable formaldehyde derived from methanol in response to increasing interest in eco-friendly construction projects, influenced by both regulations and consumer choices. Renewable methanol has a smaller carbon footprint in producing formaldehyde compared to fossil-based methanol. As environmental consciousness grows, there is a higher need for products with low carbon emissions.
• Producing renewable methanol from various types of waste materials such as agricultural, municipal, and industrial waste not only generates valuable goods, but also plays a role in decreasing waste levels and encouraging sustainable production practices, which in turn, contributes to the Circular Economy and Waste Reduction efforts. Utilizing renewable methanol in the production of formaldehyde increases resource efficiency and promotes sustainability in the industry by utilizing renewable resources.

Renewable Methanol Market Regional Insights:

Europe is Expected to Dominate the Market Over the Forecast Period

• Europe is at the forefront of renewable methanol technology, making significant progress in CO2 capture, electrolysis, and gasification. Pilot programs and display facilities, backed by both public and private investments, exhibit the durability and feasibility of renewable methanol as an energy source and raw material for chemicals. European governments and the EU provide financial assistance, incentives, and advantageous loan conditions to encourage renewable energy initiatives, such as renewable methanol.
• RED II mandates the incorporation of renewable fuels such as methanol in transportation, setting goals for renewable energy utilization. European nations are at the forefront of advancing sustainability through circular economy efforts. This involves transforming waste products into useful chemicals and fuels such as sustainable methanol. There is a growing number of waste-to-energy projects that convert unrecyclable waste into renewable energy sources such as methanol.
• Europe is dedicating attention to sustainable transportation by investigating renewable methanol as a low-carbon alternative for road transport, shipping, and aviation. The chemical sector is also looking for sustainable sources such as renewable methanol to substitute fossil-derived ingredients. Europe's advanced infrastructure enables the seamless incorporation of renewable methanol into energy systems, particularly in the maritime industry. The EU's interconnected energy market stimulates the exchange and dispersal of sustainable fuels such as methanol among member countries.

Renewable Methanol Market Active Players

• Methanex Corporation (Canada)
• OCI N.V. (Netherlands)
• BioMCN (Netherlands)
• Carbon Recycling International (CRI) (Iceland)
• Enerkem Inc. (Canada)
• LanzaTech (USA)
• BASF SE (Germany)
• Södra (Sweden)
• Nordic Green (Norway)
• Advanced Chemical Technologies (UK)
• Southern Green Gas Ltd. (Australia)
• Mitsubishi Chemical Corporation (Japan)
• FRee Energy International (Germany)
• Varennes Carbon Recycling (VCR) (Canada)
• New Hope Energy (USA)
• Renewable Methanol Institute (RMI) (Belgium)
• Carbon Clean (UK)
• Atlantic Methanol Production Company LLC (AMPCO) (USA)
• Sunfire GmbH (Germany)
• Proman AG (Switzerland)
• Johnson Matthey (UK)
• Greenfield Global Inc. (Canada)
• GreenMethanol (Denmark)
• Oberon Fuels (USA)
• BioMethanol Chemie Nederland (Netherlands)

Key Industry Developments in the Renewable Methanol Market:

• In Jan 2024, Maritime Strategies International (MSI) forecasts a greater demand for renewable ammonia compared to renewable methanol in powering the low-carbon economy. This change reflects the increasing importance of voluntary powers in reducing emissions from fossil fuels.
• In Dec 2023, Masdar and Hy24 agreed to work together to explore potential opportunities in green hydrogen production. Their main goal is to convert renewable energy into environmentally friendly hydrogen using the process of electrolysis. This collaboration will also explore producing additional environmentally friendly energy products such as ammonia, methanol, aviation fuel, and liquid hydrogen. They plan to concentrate on various regions globally, such as Europe, the Americas, Asia Pacific, and the Middle East and North Africa (MENA).

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. RENEWABLE METHANOL MARKET BY FEEDSTOCKS (2017-2032)
   1. RENEWABLE METHANOL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. AGRICULTURAL WASTE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. FORESTRY RESIDUES
   5. MUNICIPAL SOLID WASTE
   6.  CO2 EMISSIONS
   7.  INDUSTRIAL WASTE
7. RENEWABLE METHANOL MARKET BY APPLICATION (2017-2032)
   1. RENEWABLE METHANOL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. FORMALDEHYDE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. GASOLINE
   5. DIMETHYL ETHER (DME) & METHYL TERT-BUTYL ETHER (MTBE)
   6. SOLVENTS
8. RENEWABLE METHANOL MARKET BY END-USER (2017-2032)
   1. RENEWABLE METHANOL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. CHEMICAL
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. TRANSPORTATION
   5. POWER GENERATION
   6. FOOD AND BEVERAGE INDUSTRY
   7. PHARMACEUTICAL INDUSTRY
9. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Benchmarking
      2. Renewable Methanol Market Share by Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. METHANEX CORPORATION (CANADA)
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves and Recent Developments
      10. SWOT Analysis
   3. OCI N.V. (NETHERLANDS)
   4. BIOMCN (NETHERLANDS)
   5. CARBON RECYCLING INTERNATIONAL (CRI) (ICELAND)
   6. ENERKEM INC. (CANADA)
   7. LANZATECH (USA)
   8. BASF SE (GERMANY)
   9. SÖDRA (SWEDEN)
   10. NORDIC GREEN (NORWAY)
   11. ADVANCED CHEMICAL TECHNOLOGIES (UK)
   12. SOUTHERN GREEN GAS LTD. (AUSTRALIA)
   13. MITSUBISHI CHEMICAL CORPORATION (JAPAN)
   14. FREE ENERGY INTERNATIONAL (GERMANY)
   15. VARENNES CARBON RECYCLING (VCR) (CANADA)
   16. NEW HOPE ENERGY (USA)
   17. RENEWABLE METHANOL INSTITUTE (RMI) (BELGIUM)
   18. CARBON CLEAN (UK)
   19. ATLANTIC METHANOL PRODUCTION COMPANY LLC (AMPCO) (USA)
   20. SUNFIRE GMBH (GERMANY)
   21. PROMAN AG (SWITZERLAND)
   22. JOHNSON MATTHEY (UK)
   23. GREENFIELD GLOBAL INC. (CANADA)
   24. GREENMETHANOL (DENMARK)
   25. OBERON FUELS (USA)
   26. BIOMETHANOL CHEMIE NEDERLAND (NETHERLANDS), OTHER ACTIVE PLAYERS
10. GLOBAL RENEWABLE METHANOL MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size by Feedstocks
       4. Historic And Forecasted Market Size by Application
       5. Historic And Forecasted Market Size by End-User
       6. Historic And Forecasted Market Size by Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
11. INVESTMENT ANALYSIS
12. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies
       1. 1. Thailand
          2. Vietnam
          3. The Philippines
          4. Australia
          5. New-Zealand
          6. Rest Of APAC
    3. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    4. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
13. INVESTMENT ANALYSIS
14. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies