Green Methanol Market Booms as Industries Adopt Renewable Fuels

According to a recent research report published by MarkNtel Advisors, the Global Green Methanol Market is set to register around 4.9% CAGR during 2022-27. The shift of the chemical, shipping, & automotive industries from conventional fuels to renewable sources, owing to increasing environmental concerns with alarming levels of carbon emissions, is the main driving force of the Green Methanol Market. Besides, strict regulations for the shipping industry to reduce sulfur levels in the fuels they utilize are also supporting the industry's growth.

Shipping companies are adopting sulfur-less fuel alternatives like green methanol to abide by these norms & subsequently contribute to a greener future. Enterprises operating in the maritime industry across European are already using methanol as a fuel to comply with the targets set by the European Union to mitigate climate change and become carbon-neutral.

Moreover, the automotive & aviation sectors are increasingly adopting renewable energy sources like biofuels, i.e., stimulating the production of green methanol. On the other hand, fuel-cell manufacturers are actively working on producing hydrogen & methanol fuel cells in line with their plans to switch to green methanol. Since methanol is an excellent hydrogen carrier, methanol-based fuel cells can aid in the efficient production of clean electricity to power fuel cell vehicles, which, in turn, would further boost the market in the future.

Some Important Aspects Associated with the Green Methanol Industry:

• Of all types of feedstock like Biomass: agricultural waste, forestry residues, & municipal solid waste (MSW); CO2: industrial emissions & captured carbon dioxide; and renewable hydrogen, among others, Biomass is the most preferred feedstock globally used for the production of bio-methanol, as it involves eco-friendly & cost-effective treatment processes.
• Massive agricultural waste produced worldwide is utilized for renewable methanol production without the need for additional arable land or causing any hindrance to food prices/availability. Likewise, forestry residues, such as leaves, branches, needles, and woodchips, produced while harvesting trees are also being used extensively for renewable methanol production.
• The transportation sector is a highly opportunistic industry for the green methanol market since it significantly contributes to carbon emissions. Logistics & shipping companies worldwide are showing active interest in adopting sustainable alternatives to fossil fuels to abide by strict government norms across different countries to reduce the impact of GHG emissions.
• The RED (Renewable Energy Directive) II of the European Union has made it mandatory for the transportation sector to use around 14% of the energy derived from renewable sources by 2030.
• With these policies, shipping enterprises are actively working on discovering ways to utilize methanol-based fuel cells or methanol as fuel in combustion systems.
• Similar regulations in countries like India, China, the US, & several European nations mandate the automakers to use over 10% of renewable fuels by 2025, which is why they are rigorously conducting R&D to use methanol as a fuel in ICEs & hybrid vehicles.

Green Methanol Market in Europe to grow at a Considerable Pace through 2027

With strict targets set by the EU (European Union) for using low-carbon fuels to reduce the impact of GHG emissions and mitigate climate change, Europe is very likely to acquire a stronghold in the green methanol market globally during 2022-27.

While the UK has already been using blends of bio-methanol since 2018, Germany is witnessing a burgeoning demand for renewable methanol to fulfill the evolving requirements for formaldehyde for making car panels, plywood boards, & laminated floors. The growing need for green methanol attributes to the rising prices of natural gas across the country.

Furthermore, Vulcanol, renewable methanol produced by CRI, is being utilized largely in Iceland, and Bio-Methanol produced by BioMCN is a popular fuel additive used in the Netherlands. Hence, the increasing environmental sustainability in these countries owing to the above-cited aspects projects a lucrative prospect for the Europe Green Methanol Industry through 2027.

Competitive Landscape

The key companies in the Global Green Methanol Market include Advanced Chemical Technologies, BASF SE, BioMCN, Carbon Recycling International, Enerkem, European Energy, Nordic Green, NREL, SABIC (Saudi Basic Industries Corporation), Södra Skogsägarna, and Vertimass, among others.

Key Questions Answered in the Research Report

1. What are the current & future trends in the Global Green Methanol Market?
2. How has the industry been evolving in terms of geography & product adoption?
3. How has the competition been shaping across various countries, followed by their comparative factorial indexing?
4. What are the key growth drivers & challenges for the Global Green Methanol Market?
5. What are the customer orientation, purchase behavior, and expectations from green methanol producers across various regions?

Market Segmentation

1. By Feedstock (Biomass (Agricultural Waste, Forestry Residues, Municipal Solid Waste (MSW)), CO2 (Industrial Emissions, Captured CO2), Renewable Hydrogen, Others)
2. By Application (Formaldehyde, MTO (Methanol to Olefins), Dimethyl Ether (DME) & Methyl Tert-Butyl Ether (MTBE), Gasoline, Solvents, Others)
3. By End-User (Chemical, Transportation (includes Shipping), Power Generation, Automotive, Others)
4. By Region (North America, South America, Asia-Pacific, Europe, Middle East & Africa)
5. By Country (The US, Canada, Mexico, Brazil, Germany, Italy, the UK, France, Spain, Sweden, Iceland, Japan, China, India, South Korea, Saudi Arabia, the UAE, South Africa)