The global Renewable Methanol Market is estimated to be valued at US$ 212.35 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Renewable methanol can be used as transport fuel, solvent, extractant, fuel additive, etc. It provides cleaner energy and reduces greenhouse gas emissions compared to conventional methanol. Its production involves the conversion of waste biomass and captured carbon into methanol which makes it sustainable.
Market key trends:
One of the major trends driving the renewable methanol market growth is its usage in synthetic hydrocarbon fuels production. Renewable methanol serves as an effective feedstock for production of diesel, gasoline and jet fuels via modern methanol-to-hydrocarbon technologies. This helps reduce dependence on fossil fuels. Coupled with carbon capture technology, the process can even produce carbon negative synthetic fuels. As cleaner transportation fuels gain importance this emerging application of renewable methanol is likely to boost its demand over the coming years.
Segment Analysis
The global renewable methanol market is segmented by feedstock into municipal solid waste, biomass, carbon dioxide, and others. The biomass segment dominated the market in 2022 and is expected to continue its dominance over the forecast period. This is attributed to high availability of biomass from agricultural residues and forestry residues. Further, biomass is considered carbon neutral and its utilization in renewable methanol production helps reduce greenhouse gas emissions.
Key Takeaways
The Global Renewable Methanol Market Demand is expected to witness high growth, exhibiting a CAGR of 7.9% over the forecast period 2023 to 2030, due to stringent emission norms and initiatives to promote green fuel adoption.
Regional analysis
Asia Pacific dominated the global renewable market in 2022 and is expected to grow at the fastest rate during the forecast period. This is attributed to the presence of developing economies like China and India that are investing heavily in renewable energy infrastructure and shifting towards cleaner fuels for transportation and power generation.
Key players
Key players operating in the renewable methanol market are Methanex Corporation, Carbon Recycling International, BioMCN, Enerkem, Chemrec Inc., and Varmlands Methanol. Methanex Corporation is the largest producer of renewable methanol with a global production capacity of over 3,000 tonnes per day. The company is investing heavily in expanding biomass and carbon dioxide-based renewable methanol plants.