H1 2023: In January 2023, Project Air, along with the Perstorp Group, and their partners Fortum and Uniper, received funding of EUR 97 million for a giant green methanol plant. The plant will use carbon capture and utilization (CCU) for converting CO2, green hydrogen, residue streams, and biomethane into methanol. It is the first-ever plant for green methanol manufacturing from sustainable sources. According to the European Commission, the plant will be operational by 1 January 2027. Then, in March 2023, Umwelt Energy, a Danish company, revealed its plan for sustainability in India with an investment of USD 850 million. The company will set up a fully integrated green methanol factory in Tamil Nadu. To create green hydrogen, the facility will contain 500 MW of wind-solar hybrid plants that will provide the electricity needed for the electrolyzers. Methanol will subsequently be produced by reacting the green hydrogen with carbon dioxide. The facility would be able to produce 100 thousand tonnes of green methanol annually. In May 2023, a Memorandum of Understanding (MoU) for the development of a $450 million green methanol production project in cooperation with the Egyptian Bioethanol Company was signed by the Alexandria National Refining and Petrochemicals Company (ANRPC) of Egypt and Scatec of Norway. The green methanol facility will be situated near the port of Damietta, Egypt, and will be Egypt’s first green methanol production site. The plant aims to have an annual production capacity of 40 thousand tonnes of green methanol per annum, which can be increased to roughly 200 thousand tonnes.
The global green methanol market has been witnessing a substantial rise over the last few years. The growth of the market is driven by the surging demand for green methanol as a fuel and feedstock, the rising concerns about climate change, and the increase in government regulations promoting the use of renewable fuels. The market is expected to rise at a CAGR of 22% during the forecast period. According to Methanex, a leading global methanol producer, the estimated global methanol demand reached around 88 million mt in 2022, and it is projected to reach more than 14 million mt by 2027. This growth is anticipated to be fueled by a gradual transition toward green methanol.
Green methanol, also known as renewable methanol or bio-methanol, is a sustainable alternative to conventional methanol, produced from renewable sources, such as biomass, CO2 recycling, and renewable hydrogen. It is a liquid fuel with similar chemical properties to conventional methanol but produced using sustainable methods. The global demand for green methanol has been increasing due to its potential to reduce greenhouse gas emissions and its versatility in various industrial applications.
Market Drivers
Environmental Concerns and Climate Goals
The global green methanol market is propelled by increasing environmental concerns and the urgent need to curb greenhouse gas emissions. Governments and industries across the world are recognizing the imperative to address climate change and meet emission reduction targets. As a result, there is a growing emphasis on adopting cleaner fuel alternatives, such as green methanol, which is derived from renewable sources and offers a sustainable pathway to reducing carbon footprints in various sectors. The rising awareness of the environmental impact of conventional fuels is driving the demand for green methanol as a viable solution to combat climate change and contribute to a more sustainable and greener future. Its use as a transportation fuel helps reduce greenhouse gas emissions, appealing to businesses adhering to stricter environmental regulations.
Supportive Government Policies and Incentives
Government initiatives and policies are pivotal in propelling the global demand for green methanol. As economies strive to achieve sustainable development goals and reduce carbon emissions, they are increasingly promoting renewable fuels, such as green methanol. Governments across the world offer tax incentives, grants, and renewable energy mandates to incentivize the adoption and production of green methanol. These supportive policies create a conducive environment for businesses and investors, stimulating investment in green methanol projects and accelerating market growth. Moreover, such government support is instrumental in establishing green methanol as a viable and competitive alternative in the global energy landscape, advancing the transition towards a more sustainable and environmentally friendly future.
Technological Advancements
Continuous advancements in green methanol production technologies, such as improved catalysts, optimized processes, and enhanced CO2 capture methods, are driving down production costs and enhancing the market competitiveness of green methanol. These technological innovations enable more efficient and cost-effective production, making green methanol an attractive option for industries seeking sustainable and economically viable alternatives to conventional fuels.
Energy Security and Diversification
Amid the imperative to diversify energy sources and reduce reliance on fossil fuels, green methanol emerges as an appealing option as a locally sourced, renewable energy carrier. By utilizing sustainable feedstocks and producing green methanol within the region, countries enhance their energy security and decrease dependence on imported fossil fuels. This interest in green methanol aligns with global efforts to transition towards more sustainable and self-sufficient energy systems.
Market Restraints
High Production Costs
The global green methanol market faces a significant challenge in the form of higher production costs when compared to conventional methanol. Addressing these cost barriers is crucial for increasing the uptake and market penetration of green methanol. Innovations in production processes, scaling up production facilities, and optimizing feedstock sourcing are among the key strategies to overcome this challenge and establish green methanol as a viable and competitive alternative in the renewable energy landscape.
Feedstock Availability
The varying availability of sustainable feedstocks, such as biomass, in different regions can significantly affect the scalability and feasibility of green methanol production. Access to reliable and sufficient feedstock resources is essential to ensure the continuous and sustainable production of green methanol in various global markets.
Infrastructural Developments
Establishing a robust infrastructure for green methanol production, distribution, and utilization is a key challenge faced by the global market. This includes facilities for CO2 capture, renewable hydrogen production, and storage and transportation infrastructure.
Competition from Other Renewable Fuels
Green methanol faces competition from other renewable fuels, such as bioethanol, biodiesel, and synthetic fuels. The relative cost-effectiveness and performance characteristics of these alternatives may influence the adoption of green methanol in specific markets.
Trends & Opportunities
Emphasis on Sustainability and Carbon Reduction
In the global green methanol market, there is a noticeable trend toward emphasizing sustainability and carbon reduction, resulting in a heightened demand for renewable fuels, such as green methanol across diverse industries. Moreover, technological advancements are playing a significant role in enhancing the efficiency and cost-effectiveness of green methanol production processes.
There is an increasing prevalence of collaborations and partnerships among market players, fostering knowledge exchange and expediting the development of green methanol projects. Furthermore, the market is witnessing the integration of green methanol with other renewable energy sources, such as green hydrogen, to create synergistic effects and enhance the overall sustainability of energy systems. These trends are expected to have a profound impact on the growth and uptake of green methanol as a sustainable and eco-friendly fuel option in the global market.
Lastly, regulatory support and favorable government policies are stimulating market growth and encouraging investments in green methanol projects. As these trends continue to evolve, the global green methanol market is poised for significant expansion, playing a vital role in the transition toward a more sustainable and carbon-conscious future.
Transition to Renewable Energy, Sustainable Transportation to Open New Revenue Streams
The global green methanol market offers significant opportunities driven by environmental concerns, supportive policies, technological advancements, and the need for sustainable energy solutions. These opportunities include the transition to renewable energy, carbon capture and utilization, sustainable transportation, circular economy initiatives, and government incentives. Additionally, advancements in technology, investments, and partnerships are fueling market growth, along with the integration of green methanol with renewable energy sources and the emergence of new regional markets. Overall, green methanol presents a promising avenue for achieving environmental goals and meeting the growing demand for eco-friendly energy solutions worldwide.
End-Use Analysis
Automotive, chemicals, power generation, and several other sectors are the key end-use industries of green methanol across the world. Among these, the automotive industry has been leading the market over the last few years.
In 2022, the automotive segment held the largest market share and is expected to continue to do so, as the demand for alternative fuel sources is increasing to reduce carbon emissions and address climate change concerns. Green methanol finds extensive applications in the automotive sector as a transportation fuel in internal combustion engines or as a feedstock for fuel cells in hydrogen-based vehicles. In addition, it can be blended with gasoline to lower greenhouse gas emissions and enhance fuel efficiency. These factors are expected to drive the growth of the automotive end-use segment during the forecast period.
Regional Analysis
The global green methanol market reports its presence across North America, Europe, Asia Pacific, South America, and the Middle East and Africa. In 2022, Europe held a dominant position in the green methanol market across the world, accounting for more than half of the global revenue. This was attributed to the region's increasing production plants, driven by the rising demand for green methanol in application industries, such as transportation and automobiles. The region has emerged as a significant market for green methanol since the introduction of the biofuel policy in 2003, which mandated the use of 10% renewable energy in the transportation sector.
The Asia Pacific region is projected to witness a rapid growth in the green methanol market during the forecast period due to the rising application of gasoline in the transportation sector. Moreover, the increasing production of renewable energy, particularly from biomass, offers a significant opportunity for green methanol manufacturing, further driving the market's growth in the region during the years to come. China, especially, stands out as a crucial market for green methanol both, within the region and globally. The country faces pressing issues of air pollution and energy security, compelling the government to focus on developing renewable energy sources, thereby boosting demand for green methanol.
Competitive Landscape
With the presence of a large number of companies, the global green methanol market demonstrates a highly competitive landscape. Orsted, Maersk, Perstorp, Renewable Hydrogen Canada, Siemens, Porshe, HIF Goldwind Technology, Dow, and Green Technology Bank are some of the key players in the market.
These players are proactively addressing the increasing demand from end-use industries by giving priority to expanding their renewable methanol production capacity. Their commitment to research and development efforts is geared toward diversifying their product offerings, focusing on delivering high-quality variants. Their increased focus on strategic partnerships is also aiding their expansion in the global market.
Years considered for this report:
Historical Period: 2015-2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
This report will be delivered on an online digital platform with one-year subscription and quarterly update.
The objective of the Study:
• To assess the demand-supply scenario of green methanol which covers the production, demand, and supply of the global green methanol market.
• To analyze and forecast the size of the green methanol market.
• To classify and forecast the global green methanol market based on end-use and regional distribution.
• To examine competitive developments, such as expansions, mergers & acquisitions, and partnerships, of the global green methanol market.
To extract data for the global green methanol market, primary research surveys were conducted with green methanol manufacturers, suppliers, distributors, wholesalers, and traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for the global green methanol market over the coming years.
ChemAnalyst calculated the demand for green methanol in the world by analyzing the historical data and demand forecast which was carried out considering the demand for green methanol by the end-user industries across the world. ChemAnalyst sourced these values from industry experts, and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Green methanol manufacturers and other stakeholders
• Organizations, forums, and alliances related to green methanol distribution
• Government bodies, such as regulating authorities and policymakers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as green methanol manufacturers, customers, and policymakers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, the global green methanol market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:
Attribute
Details
Market Size Volume in 2022
80 thousand tonnes
Market Size Volume by 2032
460 thousand tonnes
Growth Rate
22% CAGR from 2023 to 2032
Base Year for Estimation
2023
Historical Data
2015 - 2022
Forecast Period
2024 - 2032
Quantitative Units
Demand in thousand tonnes and CAGR from 2023 to 2032
Report Coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End-Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process, and Policy and Regulatory Landscape.
Segments Covered
By End-Use: Automotive, Chemicals, Power Generation, and Others
By Sales Channel: Direct Sales and Indirect Sales
Regional Scope
North America, Europe, Asia Pacific, the Middle East and Africa, and South America.
I am satisfied with overall performance of ChemAnalyst. Weekly updates before the final report were especially helpful and reassuring. Additional requests on the interim and/or final reports were handled in a swift and professional manner
Mr.Shin Dosho
Member - Board of Directors
Osaka Gas Co. Ltd
Disruption Tracker
Disruption Tracker reflect the major shutdown on monthly basis which will help you in
tracking the inventory management and smooth functioning of business. Unforeseen shutdowns and disruptions
resulting in a loss of production capacity to impact the bottom line. The capacity tracker provides industries
with a global view of production and consumption capacity loss that reflects the corresponding conversion factors.
It also highlights the immediate impact on supply due to planned and unplanned outages as well as upcoming start-up
of new capacities. Additionally, it emphasizes how each shutdown—whether due to a maintenance turnaround or a case
of force majeure, affects the plant's operating rate for the given duration. Disruption tracker gives a clear insight
into the worldwide outages affecting the commodity of interest. With every shutdown, it also reflects the impact on
supply of the product in the market at a Global level.
What are the key factors driving the global green methanol market?
Ans:
The surging demand for green methanol as a fuel and feedstock, rising concerns about climate change, and the increase in government regulations promoting the use of renewable fuels are the key factors boosting the global green methanol market.
Q2.
What are the challenges faced by the global green methanol market?
Ans:
High production costs and the easy availability of feedstock are some key challenges the global green methanol market faces.
Q3.
Which end-use segment is likely to dominate the global green methanol market?
Ans:
Currently, the automotive industry is leading the end-use segment of the global green methanol market and is expected to remain on the top throughout the forecast period.
Q4.
Who are the leading players in the global green methanol market?
Ans:
Orsted, Maersk, Perstorp, Renewable Hydrogen Canada, Siemens, Porshe, HIF Goldwind Technology, Dow, and Green Technology Bank are the key players in the global green methanol market.
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