PUBLISHER: BIS Research | PRODUCT CODE: 1681011
PUBLISHER: BIS Research | PRODUCT CODE: 1681011
Green Methanol Market Industry Overview
Green methanol or renewable methanol is produced from a variety of sources such as biomasses, including forestry and agricultural waste, byproducts, biogas, sewage, municipal solid waste (MSW), black liquor from the pulp and paper industry, carbon dioxide, and green hydrogen produced with renewable electricity. Methanol produced from biomass is called bio-methanol, and the one produced from CO2, green hydrogen, and renewable electricity is known as e-methanol.
Market Lifecycle Stage
Green methanol has been around for years now, with companies such as CRI, OCI N.V., and Chemrec AB being some of the earliest players in the market. Carbon Recycling International (CRI) set up a first-of-its-kind e-methanol demonstration plant in 2010-11 in Iceland and became the first company to start commercial production of e-methanol in 2012 under the brand name Vulcanol. OCI N.V.'s subsidiary BioMCN was the first company to enter bio-methanol production, with the first project starting in 2010 in the Netherlands with a capacity of 200 KT/year.
Since then, the market has grown significantly, with demand increasing every day owing to strict carbon-emission regulations in the maritime industry and growing emphasis on biofuels from the governments. The maritime industry, biofuels, and support from the government are expected to further drive the growth of the market during the forecast period.
Industrial Impact
The growth of the green methanol market is closely tied to the growing demand for green methanol from the maritime industry as a clean and sustainable fuel source. Growing demand for green methanol from the maritime industry has led to a growing number of project announcements for green methanol around the globe. Additionally, a growing number of maritime shipping and logistic companies have announced the decision to include methanol-powered ships in their portfolio. For instance, in September 2022, the chairmen of China Merchants and COSCO Shipping Bulk announced that methanol as a primary source of fuel for their ships would be at the forefront of their research in the future.
Market Segmentation:
Segmentation 1: by End-Use Industry
The transportation/mobility segment is the largest end-use industry and is expected to dominate the market during the forecast period 2025-2034. Transportation/mobility is witnessing the growing adoption of green methanol due to the rising emphasis on the decarbonization of the marine industry. Companies such as A.P. Moller - Maersk and Stena have invested heavily in adopting green methanol as a primary fuel for marine vessels. For instance, A.P. Moller - Maersk signed an agreement with Orsted in March 2022 for 300,000 tons of e-methanol per year for its newly ordered fleet of 12 methanol-powered vehicles.
Segmentation 2: by Application
The fuel segment is the largest application segment and is expected to dominate the market during the forecast period 2025-2034. Green methanol is being used as a fuel, primarily in the maritime industry, owing to strict regulations and growing emphasis on the decarbonization of the maritime industry. The International Maritime Organization (IMO) has set an ambitious target of reducing international shipping carbon emissions per transport work by at least 40% by 2030 from 2008 levels. IMO is aiming to further reduce carbon emissions by 70% by 2050 from 2008 levels. This is expected to be one of the major drivers of the growing application of green methanol as fuel in the maritime industry.
Segmentation 3: by Methanol Type
The bio-methanol segment is the largest in methanol type and is expected to dominate the market during the forecast period 2025-2034. Bio-methanol is produced from biological feedstock such as forest residue, municipal solid waste (MSW), biogas, and biomass. Bio-methanol production has been around for decades and does not require large investments, unlike e-methanol production, which requires large investments to set up green hydrogen and carbon capture plants. During the forecast period, e-methanol production is expected to grow at a faster rate than bio-methanol production, owing to growing investment in green hydrogen, renewable energy, and power-to-x technology.
Segmentation 4: by Region
Europe dominates the green methanol market due to the presence of several leading companies, such as Carbon Recycling International (CRI), European Energy, and Liquid Wind AB, in the region. A highly developed renewable energy market and growing investment from shipping companies such as Auramarine and A.P. Moller - Maersk are also contributing to the dominant share of Europe in the market. Additionally, European countries were among the early adopters of green methanol technology as fuel for the marine industry, and according to the International Renewable Energy Agency (IRENA), Europe had more than 18,000 units in operations for bio-methanol production. Additionally, there is growing investment in e-methanol in Europe, and it is expected to be one of the major drivers of the growth of the market.
Recent Developments in the Green Methanol Market
Demand - Drivers and Limitations
Following are the demand drivers for the green methanol market:
The market is expected to face some limitations as well due to the following challenges:
How can this report add value to an organization?
Product/Innovation Strategy: The product segment helps the reader understand the different types of green methanol produced and their potential globally. Moreover, the study provides the reader with a detailed understanding of the green methanol market by end-use industry (transportation/mobility, chemical industry, power generation, and other end-use industry), by application (fuel, chemical feedstock, other application), and by methanol type (bio-methanol and e-methanol).
Growth/Marketing Strategy: The green methanol market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint ventures. The favored strategy for the companies has been partnerships and joint ventures to strengthen their position in the green methanol market. For instance, in September 2022, Winterthur Gas & Diesel (WinGD) and HSD Engine (HSD) announced that the companies would partner to develop an engine capable of running on green methanol by 2024.
Competitive Strategy: Key players in the green methanol market analyzed and profiled in the study involve major green methanol producers. Moreover, a detailed competitive benchmarking of the players operating in the green methanol market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.
Some prominent names established in this market are:
Company Type 1: Bio-Methanol Producers
Company Type 2: e-Methanol Producers
Companies that are not a part of the previously mentioned pool have been well represented across different sections of the report (wherever applicable).
Scope and Definition
Market/Product Definition
Key Questions Answered
Analysis and Forecast Note