Renewable Methanol Market to Grow with a CAGR of 31.37% through 2030
Growing demand for clean and renewable feedstock
and growing R&D activities are expected to drive Global Renewable Methanol
market in the forecast period 2024-2028
According to
TechSci Research report, “Renewable Methanol Market - Global Industry Size,
Share, Trends, Competition Forecast & Opportunities, 2030F”, the Global
Renewable Methanol Market was valued at USD 6.39 Billion in 2024 and is
expected to reach USD 17.97 Billion by 2030 with a CAGR of 31.37%.
Technological
advancements are playing a pivotal role in shaping the global renewable
methanol market, enabling more efficient, cost-effective, and low-carbon
production from a wide range of feedstocks. One of the most significant
breakthroughs is in carbon capture and utilization (CCU), which allows the
conversion of carbon dioxide and hydrogen into methanol. A notable example is
Carbon Recycling International’s facility, which captures industrial CO₂ emissions and transforms them into
renewable methanol, effectively closing the carbon loop while producing
valuable fuel.
Gasification
technologies have also advanced considerably, allowing biomass and waste
materials to be processed into syngas for methanol synthesis. Innovations by
Fraunhofer Institute have reduced the energy requirements of gasification,
improving efficiency and lowering operational costs. In parallel,
next-generation catalysts developed by research teams in Germany and Sweden
enable methanol production at lower temperatures and pressures, enhancing
yields while significantly reducing energy consumption and associated costs.
Electrochemical
production methods are emerging as a promising pathway, using renewable
electricity to produce methanol directly from CO₂ and water, supporting the growth of
power-to-liquid technologies. Companies like LanzaTech have pioneered
fermentation-based processes that utilize industrial off-gases, such as those
from steel mills, to produce methanol efficiently, turning waste streams into
valuable feedstocks. Similarly, Nordic Green has demonstrated the potential of
producing bio-methanol from forest residues, showcasing sustainable biomass
conversion at scale.
Policy
support, such as the European Union’s Green Deal and rising renewable fuel
mandates, is accelerating adoption by creating favorable regulatory and
investment environments. The integration of artificial intelligence (AI) into
methanol production systems allows for real-time process optimization,
predictive maintenance, and enhanced resource efficiency. Meanwhile, the
development of modular methanol plants is enabling decentralized production,
making it feasible to establish facilities closer to feedstock sources and
end-use markets.
Looking
ahead to 2030, these technological innovations are expected to significantly
expand renewable methanol’s role in transportation fuels, marine shipping, and
chemical manufacturing. By lowering production costs, improving scalability,
and reducing lifecycle emissions, renewable methanol is positioned to become a
cornerstone in the transition to a low-carbon, circular economy, directly
contributing to global climate goals while diversifying the energy and chemical
feedstock landscape.
Browse over XX
market data Figures spread through XX Pages and an in-depth TOC on "Global
Renewable Methanol Market”
The Global Renewable
Methanol Market is segmented feedstock, application, end-User Industry, regional
distribution, and company.
Based
on feedstock, the natural gas segment dominates the global renewable methanol
market and is projected to maintain its leading position throughout the
forecast period. This dominance is attributed to the abundant availability of
natural gas, well-established infrastructure for its extraction and processing,
and its cost-effectiveness compared to other feedstocks. Natural gas-based
renewable methanol production offers consistent quality and scalability, making
it a preferred choice for large-scale industrial applications. Advancements in
reforming technologies and integration with carbon capture and utilization
(CCU) systems are further enhancing production efficiency and reducing
emissions. These factors, coupled with growing demand in fuel, chemical, and
energy sectors, are expected to sustain the segment’s strong growth in the
coming years.
Based on region,
Asia-Pacific has emerged as the fastest-growing segment in the global renewable
methanol market and is expected to sustain robust growth over the forecast
period. This growth is driven by rapid industrialization, increasing energy
demand, and strong government initiatives promoting clean energy and carbon
reduction. Countries like China, India, and Japan are investing heavily in
renewable methanol production, leveraging abundant biomass resources,
waste-to-energy projects, and carbon capture technologies. Supportive policies,
subsidies, and renewable energy mandates are accelerating adoption across
transportation, power generation, and chemical industries. The region’s
expanding manufacturing base and commitment to net-zero targets are fostering
large-scale renewable methanol projects, positioning Asia-Pacific as a key
driver of global market expansion..
Major companies
operating in Global Renewable Methanol Market are:
- Advanced
Chemical Technologies
- BASF SE
- Carbon Recycling
International (CRI) LLC
- OCI N.V.
- thyssenkrupp AG
- European Energy
AS
- Orsted AS
- Proman AG
- WASTEFUEL
- Enerkem Inc.
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“The global
renewable methanol market is poised for substantial growth through 2030, driven
by increasing demand for clean fuels and sustainable chemicals in
transportation, power generation, and materials production. Key factors include
advancements in carbon capture and biomass conversion technologies, supportive
government policies for low-carbon energy, and the shift toward bio-based
alternatives. Europe dominates due to stringent emission regulations, while
Asia-Pacific is the fastest-growing region with expanding industrial
applications”, said Mr. Karan Chechi, Research Director, TechSci Research, a
research-based management consulting firm.
“Renewable
Methanol Market - Global Industry Size, Share, Trends, Opportunity, and
Forecast, Segmented By Feedstock (Natural Gas, Renewable Energy, Agriculture
Waste, and Others), By Application (Formaldehyde, Dimethyl Ether & Methyl
Tert-Butyl Ether (MTBE), Gasoline, Solvents, and Others), By End-User Industry
(Chemicals, Transportation, Power Generation, and Others), By Region, and
Competition, 2020-2030F”, has evaluated the future growth potential of Global
Renewable 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 Renewable
Methanol Market.
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