Green Methanol Market Size to Worth USD 17.84 Billion by 2034
According to Towards Chemical and Materials, the global green methanol market size is calculated at USD 3.22 billion in 2025 and is expected to be worth around USD 17.84 billion by 2034, growing at a compound annual growth rate (CAGR) of 21.81% over the forecast period 2025 to 2034.
Ottawa, Oct. 03, 2025 (GLOBE NEWSWIRE) -- The global green methanol market size was valued at USD 2.66 billion in 2024 and is anticipated to reach around USD 17.84 billion by 2034, growing at a compound annual growth rate (CAGR) of 21.81% over the forecast period from 2025 to 2034. A study published by Towards Chemical and Materials a sister firm of Precedence Research.
The Rising global demand for sustainable marine and aviation fuels is driving increased adoption of green methanol as a low-carbon alternative.
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Green Methanol Overview:
Green methanol, also known as bio or e-methanol, is produced using sustainable feedstocks and renewable energy through routes such as biomass gasification, electrolysis combined with carbon capture, and bio methane reforming. The market is propelled by stringent environmental policies, carbon neutrality commitments, and growing integration of renewable energy, while its versatility enables use as a fuel, chemical feedstock, or hydrogen carrier across industries. Industries are increasingly investing in sustainable fuel alternatives to reduce reliance on fossil fuels, pushing green methanol into prominence amidst the broader transition to low carbon energy systems.
Market Report Highlights
- The U.S. green methanol market size was valued at USD 0.73 billion in 2024 and is expected to be worth around USD 5.24 billion by 2034.expanding at a CAGR of 21.79% from 2025 to 2034.
- North America green methanol industry captured the largest global market share of 39.11% in 2024.
- Asia Pacific has held revenue share of 34.72% in 2024.
- By type, the biomethanol segment dominated the market in 2024.
- By type, the e-methanol segment is anticipated to grow significantly in the market during the forecasted period.
- By production route, the power to methanol segment dominated the market in 2024.
- By production route, the biomethane reforming segment is anticipated to grow in the forecasted period.
- By end use, the chemical segment led the market and accounted for the largest revenue share of 60.19% in 2024.
- By end use, the fuel segment is anticipated to grow in the forecasted period.
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Green Methanol: A Step Towards Sustainability
Green methanol, or e-methanol, is at the forefront of sustainable methanol production. This process involves synthesising methanol by reacting captured CO₂ with hydrogen produced from renewable sources, such as solar or wind energy. Green methanol offers several key environmental benefits:
- Reduction in CO₂ Emissions: By using captured CO₂, green methanol significantly reduces the carbon footprint compared to conventional production methods.
- Carbon Neutrality: The process of capturing CO₂ and reusing it in methanol production closes the carbon loop, making green methanol a potential carbon-neutral energy carrier.
- Enhanced Sustainability: With renewable hydrogen as a key input, green methanol aligns with the broader push towards a sustainable, low-carbon future.
The Green Methanol Production Process
The production of green methanol is a multi-step process involving carbon capture, hydrogen generation, and methanol synthesis:
- Carbon Capture: CO₂ is captured from industrial emissions or directly from the atmosphere using technologies like absorption or membrane separation.
- Hydrogen Generation: Renewable energy is used to electrolyse water, generating green hydrogen.
- Methanol Synthesis: CO₂ and hydrogen are fed into a reactor, where a catalytic reaction produces methanol (CH₃OH). The catalysts commonly used in this process are based on copper, zinc, and aluminium oxides, which facilitate the reaction at temperatures of 210–270°C and pressures of 5–10 MPa.
The chemical reaction for methanol production is as follows:
For every tonne of methanol produced, approximately 1.37 tonnes of CO₂ and 0.19 tonnes of hydrogen are required, with water as a byproduct. The crude methanol is purified through distillation to ensure high quality.
Challenges in Green Methanol Production
While green methanol holds immense promise, several challenges remain:
- Cost: Producing green methanol is currently more expensive than traditional methods, largely due to the high cost of hydrogen generation through electrolysis.
- Infrastructure: Existing infrastructure for methanol storage and distribution may need to be adapted to accommodate large-scale green methanol production.
- Efficiency: Enhancing the efficiency of carbon capture, hydrogen production, and methanol synthesis is essential to improve the energy yield and reduce costs.
- Policy Support: Governments must implement supportive policies, such as subsidies or carbon pricing, to encourage the adoption of green methanol production technologies.
Despite these challenges, advancements in technology and increasing environmental awareness are driving investment and innovation in the green methanol sector.
The Role of Tata Consulting Engineers (TCE)
Tata Consulting Engineers (TCE) is at the forefront of engineering solutions for carbon capture and utilisation. TCE’s expertise extends to the conversion of captured CO₂ into valuable products, including methanol, which is widely used across industries, and sustainable aviation fuel. TCE’s innovations in carbon capture technology ensure that environmental impact is mitigated while providing economically viable resources for various industrial applications.
Green Methanol Market Report Scope
| Report Attribute | Details |
| Market size value in 2026 | USD 3.98 billion |
| Revenue forecast in 2034 | USD 17.84 Billion |
| Growth Rate | CAGR of 20.96% from 2025to 2034 |
| Base year for estimation | 2024 |
| Historical data | 2020 - 2024 |
| Forecast period | 2025 - 2034 |
| Quantitative units | Revenue in USD million/billion, volume in kilotons, and CAGR from 2024 to 2034 |
| Report coverage | Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments covered | By Type, Production Route, End Use, Region |
| Market Leaders | Methanex Corporation, OCI Company Ltd., Carbon Clean Solutions, Nordic Green, Haldor Topsoe, Climeworks, BASF SE,Enerkem, BioMCN, Veolia |
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Grey, blue and green methanol
Like other compounds or materials, methanol is nowadays classified according to the degree of sustainability of its production process, making it a more or less environmentally friendly raw material, and therefore more or less useful for contributing to decarbonisation. Thus, we must clearly distinguish green methanol from blue or grey methanol.
Grey methanol
It is obtained by synthesis reaction from methane present in natural gas (or in some cases, as in China, still from coal). It is therefore not a renewable or clean energy.
Blue methanol
It is also obtained by synthesis derived from natural gas, but includes as part of the process the capture and storage of the carbon generated during its production, converting it into a less polluting product.
Green methanol
It is produced using only renewable energy sources in the process and ensuring that no harmful gases are emitted into the atmosphere. Green methanol is thus synonymous with clean, renewable methanol.
- Biomethanol: produced from the gasification(1) of sustainable biomass sources such as livestock, agricultural and forestry residues and municipal waste.
- e-methanol: produced from hydrogen produced from renewable electricity (what we call green hydrogen) and captured carbon dioxide.
What Are The Major Trends In The Green Methanol Market?
- Increasing demand for decarbonisation and sustainability is pushing wider adoption of green methanol across industries.
- Advanced in production technologies (such as AI integration, process electrification, and improved carbon capture) are enhancing efficiency and driving market traction.
- Use of green methanol in transportation especially marine fuel as a fuel additive is becoming more prevalent as policies and industry trends favour cleaner fuels.
- Strategic partnerships and investments between governments and private companies are accelerating infrastructure development and scaling of green methanol.
Green Methanol Market Growth Factors
Can Cleaner Shipping Rewrite Fuel Demand?
Global shipping giants like Maersk and CMA CGM have publicly announced large scale adoption of green methanol as a preferred marine fuel, pushing suppliers to ramp up production. International maritime regulations are tightening emissions standards, forcing fleets to switch away from fossil based bunkers. As ports behind installing methanol bunking infrastructure, accessibility barriers are rapidly disappearing, making the transition more practical. The momentum is not driven by policy alone but by reputational pressure from supply chain customers demanding low-carbon logistics. This growing alignment between regulators, shippers, and end clients is turning green methanol from an experimental fuel into a commercial necessity.
Will Carbon Capture Tech Make Green Methanol Cheaper?
Advances in carbon capture systems are allowing industries like cement and steel to turn their emissions into usable feedstock for methanol production. Companies such as Carbon Clean and Clime works are deploying modular units that attach directly to industrial plants, making carbon utilization more accessible. Instead of treating emissions as waste, producers are converting them into revenue streams by selling captured CO2 to methanol facilities. This circular approach reduces reliance on biomass or fossil-based CO2 sources, strengthening production resistance. As captured carbon becomes widely available, green methanol gains both supply stability and cost advantage over conventional alternatives.
Market Opportunity
Can Airlines Open A New Methanol Market?
Airlines are testing green methanol as a cleaner fuel option, with engine developers like Rolls-Royce confirming early compatibility trials. Unlike hydrogen, methanol fits existing supply chains, making adoption faster. Aviation climate targets are forcing carriers to look beyond traditional biofuels. If adopted, methanol could become a mainstream jet fuel alternative.
Could Waste Streams Become The Nest Methanol Feedstock?
Cities and waste companies are converting landfill gas and organic waste into methanol instead of burning or dumping it. This approach turns pollution into fuel while cutting emissions from landfills. Local sourcing lowers feedstock costs and improves energy security. Waste to methanol projects are gaining backing from public agencies.
Limitations In The Green Methanol Market
- High production costs and dependency on renewable feedstocks limit the widespread adoption of green methanol compared to conventional fuels.
- Insufficient infrastructure for storage, distribution, and fuelling hampers large scale deployment across transportation and industrial sectors.
Why Is North America Dominating The Green Methanol Market?
North America dominated the green methanol market in 2024 due to the growing need to reduce greenhouse gas emissions and the shift toward sustainable fuel adoption. Companies in the region are investing in dual fuel vessels capable of operating on green methanol, supporting market expansion. Stringent environmental regulations and rising demand for sustainable energy and technological advancements in production efficiency also contribute to the region’s leading position.
The USA is a major contributor to North America’s market dominance, driven by investments in renewable energy infrastructure and advancements in production technologies. Green methanol is increasingly used in the automotive sector as a duel additive and in the marine sector as a sustainable fuel options to reduce emissions. Federal policies and incentives promote the adoption of cleaner fuels, enhancing market viability. Companies are focusing on scaling production using sustainable feedstocks and carbon capture technologies. These factors position the USA as a central hub for green methanol development.
Why Is Asia Pacific The Fastest Growing Green Methanol Market?
Asia Pacific expects the fastest growth in the green methanol market during the forecast period, fuelled by rapid industrialization, rising energy demand, and a strong focus on lowering carbon emissions. Chemical companies are collaborating with shipping firms to set up production facilities, while initiatives such as producing plastics with green methanol or low-carbon hydrogen highlight the region’s push for sustainable chemical production. These large scale projects are accelerating market growth and contributing to environmental benefits. The region’s commitment to clean energy and innovative applications positions it as the fastest growing market during the forecast period.
China holds the largest share of the market in Asia Pacific and is the region’s top producer. Alongside Japan and India, China’s rapid industrial expansion is driving higher energy consumption, creating strong demand for sustainable fuels. The country has announced plans to establish large-scale green methanol production facilities, supporting both market growth and emission reduction goals. These developments strengthen China’s position as a central hub for green methanol in the region.
Green Methanol Market Segmentation
Type Insights
Why Is Bio-Methanol Segment Dominating The Green Methanol Market?
The bio-methanol segment dominated the market in 2024. Bio-methanol continues to attract attention because it is produced from renewable feedstocks, including biomass and agricultural residues, which align with global sustainability goals. Industries are increasingly integration bio-methanol into their energy mix to reduce carbon emissions while maintaining operational efficiency. The versatility of bio-methanol allows to serve multiple applications, from fuel additives in transportation of feedstocks in chemical production. Moreover, growing policy support and environmental regulations in regions such as North America and Europe encourage the adoption of bio-methanol over traditional fossil-based methanol, ensuring its dominance in the market.
The e-methanol segment is set to experience the fastest rate of market growth from 2025 to 2034. E-methanol, produced using renewable hydrogen and captured CO2 is gaining attention due to its extremely low carbon footprint and compatibility with existing methanol infrastructure. Industries seeking to meet ambitious net-zero targets are increasingly exploring e-methanol for industrial and transportation application. Technological advancements in electrolysis and carbon capture are improving production efficiency, making e-methanol more economically viable. As a result, this segment is positioned to expand rapidly, reflecting a string shift toward fully sustainable methanol solutions in the coming years.
Production Route Insight
Why Is The Power Of Methanol Segment Dominating The Green Methanol Market?
The power to methanol segment dominated the green methanol market in 2024. This production route remains dominant because it efficiently converts various feedstock, including biomass and captured carbon, into methanol suitable for multiple industrial applications. Companies prefer this route due to its well established technology, scalability, and ability to produce consistent, high purity methanol. In addition, regulatory support for cleaner fuels and increasing industrial demand for low carbon alternatives further reinforce its position.
The biomethane reforming segment expects significant growth in the market during the forecast period. This method is gaining traction as it converts biomethane, produced from organic waste or biogas, into green methanol with minimal environmental impact. The process supports the circular economy by utilizing waste as feedstock while producing a clean fuel alternative. Technological improvements in reforming and catalyst efficiency are making this route more economically feasible and environmentally attractive.
End Use Insights
Why Is The Chemical Segment Dominating The Green Methanol Market?
The chemical segment dominated the green methanol market in 2024. This segment continues to dominate because methanol serves as a key feedstock for producing formaldehyde, acetic acid, and other essential chemicals in a sustainable manner. Industries are increasingly replacing conventional methanol with green methanol to reduce carbon emissions and align with environmental regulations. The chemical sector benefits from the versatility of green methanol, enabling high quality production while supporting low carbon industrial processes.
The fuel segment is anticipated to grow in the forecast period. This segment is gaining momentum as green methanol is increasingly adopted as a sustainable fuel alternative for shipping, automotive, and power generation applications. Governments and industries are pushing for cleaner fuels to meet emission reduction targets, making green methanol a viable solution. Investments in dual fuel engines, bunkering infrastructure, and renewable energy integration are expanding its practical use.
More Insights in Towards Chemical and Materials:
- U.S. Methanol Market : The U.S. methanol market size was reached at USD 5.32 billion in 2024 and is expected to be worth around USD 12.85 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.22% over the forecast period 2025 to 2034.
- Methanol Market : The global methanol market volume was reached at 12.37 million tons in 2024 and is expected to be worth around 18.50 million tons by 2034, growing at a compound annual growth rate (CAGR) of 4.11% over the forecast period 2025 to 2034.
- PFAS Waste Management Market : The global pfas waste management market size is calculated at USD 2.11 billion in 2024, grew to USD 2.23 billion in 2025, and is projected to reach around USD 3.72 billion by 2034. The market is expanding at a CAGR of 5.84% between 2025 and 2034.
- Polypropylene Compounds Market : The global polypropylene compounds market size was approximately USD 23.89 billion in 2024 and is projected to reach around USD 50.86 billion by 2034, with an estimated compound annual growth rate (CAGR) of about 7.85% between 2025 and 2034.
- Recycled Plastic Pipes Market : The global recycled plastic pipes market size was approximately USD 7.85 billion in 2024 and is projected to reach around USD 20.08 billion by 2034, with an estimated compound annual growth rate (CAGR) of about 9.85% between 2025 and 2034.
- Carbon Fiber Reinforced Plastic (CFRP) Market : The global carbon fiber reinforced plastic (CFRP) market size was approximately USD 19.85 billion in 2024 and is projected to reach around USD 48.08 billion by 2034, with an estimated compound annual growth rate (CAGR) of about 9.25% between 2025 and 2034
- Analytical Chemistry Sample Preparation Market : The global analytical chemistry sample preparation market size is calculated at USD 2.85 billion in 2024, grew to USD 3.01 billion in 2025, and is projected to reach around USD 4.98 billion by 2034. The market is expanding at a CAGR of 5.74% between 2025 and 2034.
- Building Envelope Market : The global building envelope market size was valued at USD 117.48 billion in 2024, grew to USD 124.00 billion in 2025, and is expected to hit around USD 201.63 billion by 2034, growing at a compound annual growth rate (CAGR) of 5.55% over the forecast period from 2025 to 2034.
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Nickel Market : The global nickel market size is calculated at USD 41.88 billion in 2024, grew to USD 44.92 billion in 2025, and is projected to reach around USD 84.49 billion by 2034. The market is expanding at a CAGR of 7.27% between 2025 and 2034.
Green Methanol Market Top Key Companies:
- Methanex Corporation
- OCI Company Ltd.
- Carbon Clean Solutions
- Nordic Green
- Haldor Topsoe
- Climeworks
- BASF SE
- Enerkem
- BioMCN
- Veolia
Recent Developments
- In September 2025, India is making significant strides in green methanol infrastructure development. The government has laid the foundation for a pilot green methanol bunkering and refuelling facility at VOC Port in Tamil Nadu, with a capacity of 750 m3. This initiative supports the use of alternative fuels and aligns with proposed Coastal Green Shipping Corridor between Kandla and Tuticorin, aiming to enhance sustainable maritime operations.
- In October 2024, Private companies are also contributing to the green methanol sector. AM Green BV, in partnership with GAIL (India) Limited, is exploring the development of solar and wind hybrid renewable energy projects across India. These projects focus on providing a long-term supply of carbon dioxide for e-methanol production, supporting the country’s transition to cleaner fuels.
Green Methanol Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2034. For this study, Towards Chemical and Materials has segmented the global Green Methanol Market
By Type
- Biomethanol
- E-Methanol
By Production Route
- Power to Methanol
- Biomethane Reforming
- Biomass Gasification
- Waste to Methanol
By End Use
- Chemical
- Fuel
By Regional
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
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