Renewable Methanol Market: By Feedstock (Agricultural Waste, Forestry Residues, Municipal Solid Waste, Co2 Emissions, Industrial Waste, Others), By Application (Formaldehyde, Dimethyl Ether & Methyl Tert-Butyl Ether (MTBE), Gasoline, Solvents, Others), By End-User Industry (Chemicals, Transportation, Power Generation, Others) and Geography

Renewable Methanol Market was valued at USD 610.2 million in 2022 and is poised to grow at a CAGR of 5.8% over 2023-2029. Renewable methanol, also referred to as bio-methanol or green methanol, is a form of methanol that is produced from renewable feedstocks like biomass, carbon dioxide (CO2) captured from the atmosphere or industrial processes, and renewable hydrogen in order to produce a more environmentally friendly and carbon-neutral form of methanol compared to conventional methanol production methods that rely on fossil fuels. The desire to reduce greenhouse gas emissions and combat climate change is expected to drive the renewable methanol market. Furthermore, the utilization of renewable methanol as an energy carrier enables the chemical storage of extra renewable energy for later use further propels the market growth. The usage of renewable methanol as an alternative fuel for internal combustion engines and fuel cells to reduce emissions from the transportation sector has provided opportunities for the development of the market by replacing conventional gasoline and diesel in certain applications. For instance, according to EIA, in 2021, Americans used about 135 billion gallons of gasoline, including 134.83 billion gallons of finished motor gasoline and about 0.18 billion gallons of finished aviation gasoline. Moreover, the use of carbon dioxide (CO2) as a feedstock for the production of renewable methanol is gaining popularity as businesses look for ways to cut emissions and use leftover carbon. But the production of renewable methanol is more expensive compared to conventional methanol production methods that rely on fossil fuels which hinders the market growth. However, increased industrialization activities coupled with expanded residential infrastructure development along with a desire to reduce emissions through fuel consumption, coupled with innovations in the field of renewable sources to produce fuel is anticipated to heighten the market during the forecasted period.

Renewable Methanol Market Key Developments:

• In March 2022, A.P. Moller - Maersk (Maersk) entered a strategic partnership with six leading companies CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel to boost the global production capacity of green methanol.
• In October 2021, Clean Sea Transport, a joint venture between MSEA Group, Arkview Capital, and Scorpio Tankers acquired Swedish ship manager Marinvest to grow its position in the emerging methanol transport market and secure future capital.
• In August 2019, Blue World Technologies acquired 15% of Danish Power Systems to utilize the proven technology of Danish Power Systems for their methanol fuel cell systems.