Green Methanol Market to Grow with a CAGR of 12.80% through 2030

Rising Demand for Clean Marine and Aviation Fuels and Advancements in Electrolysis and Carbon Capture Technologies are expected to drive the Global Green Methanol Market growth in the forecast period, 2026-2030

According to TechSci Research report, “Green Methanol Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, the Global Green Methanol Market stood at USD 241.14 Million in 2024 and is anticipated to grow with a CAGR of 12.80% in the forecast period.

Governments and industry stakeholders across the globe are facing mounting regulatory and societal pressure to reduce greenhouse gas (GHG) emissions, particularly in sectors where direct electrification is technically or economically unviable such as maritime transport, aviation, and heavy industrial manufacturing. In this context, green methanol, synthesized using renewable electricity (via green hydrogen) and sustainable carbon sources like captured CO₂ or biogenic waste, is increasingly recognized as a carbon-neutral or potentially carbon-negative alternative fuel. It serves as a pragmatic solution to help meet legally binding climate targets under frameworks such as the Paris Agreement, IMO decarbonization strategy, and national net-zero mandates.

A wave of pro-growth policy instruments and market-based mechanisms is actively advancing the deployment of green methanol projects. Subsidies and tax credits notably the U.S. Inflation Reduction Act (IRA), which provides financial incentives to produce clean hydrogen and CO₂-based fuels, thereby improving project bankability. Carbon pricing frameworks such as the EU Emissions Trading System (EU ETS) that increase the financial burden of fossil-based emissions while rewarding low-carbon alternatives like green methanol. Blending mandates and renewable fuel obligations which are creating formal demand for low-carbon fuels in key transport segments, especially in shipping and aviation. These policy mechanisms are not only reducing cost differentials between green and conventional methanol but also mitigate investment risks, thus attracting both private equity and public-sector funding into the market.

An increasing number of multinational corporations, particularly in shipping, energy, chemical manufacturing, and consumer goods are adopting science-based targets to reduce Scope 1 and Scope 3 emissions. Green methanol is gaining traction as a preferred decarbonization lever due to its versatile applications and relatively mature technology readiness. This growing corporate demand is further amplified by the influx of ESG-focused capital, with institutional investors classifying green methanol ventures as sustainable infrastructure assets. The result is a sharp uptick in joint ventures, commercial-scale investments, and long-term offtake agreements in this space.

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Global Green Methanol Market”

The Global Green Methanol Market is segmented into feedstock, type, application, regional distribution, and company.

Based on its type, the Bio-Methanol segment has emerged as the predominant market leader, Bio-methanol is derived from organic waste materials such as municipal solid waste (MSW), agricultural residues, forestry biomass, and biogas.

Bio-methanol production leverages well-understood thermochemical conversion technologies, such as gasification and reforming, have already been deployed at scale. This allows for faster project execution, lower capital intensity, and simpler integration with existing methanol production facilities. Bio-methanol benefits from more competitive production economics, especially in regions with abundant organic waste streams. Unlike e-methanol, it does not rely on expensive electrolyzers or high-purity CO₂ capture systems, making it a more cost-effective option in the current market landscape. Many countries are actively pursuing waste-to-energy initiatives, positioning bio-methanol as a dual-benefit solution converting waste into fuel while reducing landfill and methane emissions. This circular economy value proposition enhances its market appeal.

Asia-Pacific is strategically positioned to witness the fastest growth in the global Green Methanol market, Countries such as China, India, Japan, and South Korea have made bold climate pledges, including carbon neutrality targets and aggressive timelines for industrial decarbonization. These policy signals are encouraging both public and private sector players to invest heavily in low-carbon fuel alternatives like green methanol. China has announced massive hydrogen development roadmaps and is promoting green methanol as a key feedstock and fuel substitute for hard-to-abate sectors. India has recently prioritized green methanol under its National Green Hydrogen Mission and is supporting pilot projects for marine and transportation applications.

APAC is home to some of the world’s most energy- and emissions-intensive industries, such as steel, cement, shipping, and chemicals. These sectors are under growing pressure to reduce carbon footprints. Green methanol offers a feasible decarbonization pathway especially for regions where full electrification is impractical due to infrastructure limitations or high power costs. The region has a rich availability of agricultural residues, forestry waste, and municipal solid waste, creating favorable conditions for bio-methanol production. In parallel, increasing industrial CO₂ emissions and large-scale thermal plants provide potential feedstock for e-methanol synthesis, especially when coupled with renewable hydrogen from emerging solar and wind projects.

Major companies operating in Global Green Methanol Market are:

• OCI N.V.
• Methanex Corporation
• Enerkem Inc.
• Carbon Recycling International
• Södra Skogsägarna
• BASF SE
• Topsoe A/S
• Liquid Wind AB
• Eni S.p.A.
• ABEL Energy Pty Ltd

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“The Global Green Methanol Market is positioned at the forefront of the energy transition, offering a scalable, low-carbon alternative for industries seeking to decarbonize beyond the limits of electrification. With rising regulatory pressure, strong investor interest, and accelerating advancements in green hydrogen and carbon capture technologies, green methanol is rapidly evolving from a niche innovation to a commercially viable solution across sectors such as shipping, chemicals, and aviation. As global stakeholders align toward net-zero commitments, the market is expected to witness robust expansion, opening significant opportunities for long-term investment, cross-sectoral collaboration, and sustainable industrial transformation.,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Green Methanol Market - Global Industry Size, Share, Trends, Opportunity & Forecast, Segmented By Feedstock (CO2 Emissions, Municipal Solid Waste, Agricultural Waste, Forestry Residues, Others), By Type (E-Methanol, Bio Methanol), By Application (Fuel Grade, Chemical Feedstock, Others), By Region, & Competition, 2020-2030F”, has evaluated the future growth potential of Global Green Methanol Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Green Methanol Market.

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