Global Renewable Methanol Market Size Likely to Surpass at a CAGR of 54.7% By 2033

Global Renewable Methanol Market size was valued at USD 2.7 Billion in 2024 and is expected to reach USD 26.7 Billion by 2033, at a CAGR of 54.7% during the forecast period 2024 – 2033.

Renewable Methanol Market: Overview

Methanol that is created using sustainable energy sources, like carbon dioxide, hydrogen, and biomass, is known as renewable methanol. Second-generation methanol made from renewable energy sources as opposed to classic methanol, which is made from fossil fuels, is called renewable methanol.

The industry is growing because using renewable methanol as an energy carrier allows for the chemical storage of excess renewable energy for later use. By taking the place of traditional gasoline and diesel in some applications, the use of renewable methanol as a fuel substitute for internal combustion engines and fuel cells to lower emissions from the transportation sector has created chances for market growth.

Furthermore, as companies search for methods to reduce emissions and repurpose residual carbon, the use of carbon dioxide (CO2) as a feedstock for the synthesis of renewable methanol is becoming more and more popular. However, the cost of producing methanol from renewable sources is higher than that of conventional methods that use fossil fuels, which limits the expansion of the market.

However, it is anticipated that the market will grow during the projected period due to increased industrialization activities, expanded residential infrastructure development, a desire to reduce emissions through fuel consumption, and innovations in the field of using renewable sources to produce fuel.

By feedstock, the renewable energy segment held the highest market share in 2023 and is expected to keep its dominance during the forecast period 2024-2033. The growth of the renewable methanol market is also being aided by the increasing number of industrial installations, the escalation of commercial activities like transportation, and the emission of dangerous gases like carbon dioxide and carbon monoxide when normal fuels burn.

By application, the formaldehyde segment held the highest market share in 2023 and is expected to keep its dominance during the forecast period 2024-2033. Formaldehyde an integral component and a backbone for the majority of chemical products.

Methyl-t-Butyl Ether is a widely used component in fuel for gasoline-driven engines and therefore has significant applications in the global transportation sector. Furthermore, the use of renewable methanol in gasoline blends is being encouraged because of its many uses, including as an octane booster, transition fuel, and fuel extender.

European Parliament and the European Council agreed to increase the maritime transport sector’s contribution to the European Union Green Deal, which aims to EU reduce greenhouse gas emissions by at least 55% by 2030, and reach climate neutrality by 2050.

BASF SE is a European multinational company and the largest chemical producer in the world. Its headquarters are located in Ludwigshafen, Germany. The BASF Group develops, produces and markets about 700 intermediates around the world. The most important of the division’s product groups include amines, diols, polyalcohols, acids and specialties.

Report Scope

CMI has comprehensively analyzed renewable methanol market. The driving forces, restraints, challenges, opportunities, and key trends have been explained in depth to depict an depth scenario of the market. Segment wise market size and market share during the forecast period are duly addressed to portray the probable picture of this global renewable methanol application.

The competitive landscape includes key innovators, after market service providers, market giants as well as niche players are studied and analyzed extensively concerning their strengths, weaknesses as well as value addition prospects. In addition, this report covers key players profiling, market shares, mergers and acquisitions, consequent market fragmentation, new trends and dynamics in partnerships.

List of the prominent players in the Renewable Methanol Market:

• Advanced Chemical Technologies
• Apex Energy Teterow GmbH
• Carbon Recycling International
• BASF SE
• Enerkem
• Fraunhofer
• Innogy
• Nordic Green
• OCI N.V.
• Sodra
• Uniper SE
• Vertimass LLC
• Methanex Corporation
• BioMCN
• Chemrec Inc.
• VarmlandsMethanol
• Alberta Pacific
• New Hope Energy
• Trans World Energy
• ENI
• Liquid wind
• Veolia
• Others

The Renewable Methanol Market is segmented as follows:

By Feedstock

• Agriculture Waste
• Municipal Waste
• Renewable Energy
• Others

By Application

• Gasoline
• Formaldehyde
• MTBE
• Dimethyl Ether
• MTO
• Acetic Acid
• Others

By End Use

• Chemicals
• Transportation
• Power Generation
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America