by Renewable methanol is produced from renewable sources such as various organic wastes, biomass, and carbon dioxide. It offers comparable physical and chemical properties to traditional fossil fuel-based methanol. Renewable methanol helps reduce emissions, is cost effective, and is a promising biomass conversion technology.
The global Renewable Methanol Market is estimated to be valued at US$ 212.35 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing adoption of bio-based methanol is expected to drive the renewable methanol market growth over the forecast period. Methanol produced from renewable sources helps reduce dependence on fossil fuels and lower greenhouse gas emissions. Various industries such as transportation, power generation, chemicals are increasingly adopting renewable methanol to meet climate targets. For instance, in 2021, Yara, a Norwegian chemical company partnered with Carbon Recycling International to build a renewable methanol plant in Iceland. The plant utilizes captured carbon dioxide to produce renewable methanol, contributing to decarbonization efforts. Similar such initiatives by governments and industry players are expected to boost the demand for renewable methanol in the coming years.
SWOT Analysis
Strength: The renewable methanol market is driven by supportive governmental policies and regulations promoting renewable energy sources. Using renewable feedstock such as biomass and municipal solid waste makes methanol a renewable and eco-friendly transportation fuel.
Weakness: High production costs associated with renewable methanol makes it less competitive compared to traditional fossil fuel-based methanol. Availability of raw materials is also limited.
Opportunity: Potential use of renewable methanol in transportation sector as marine and transportation fuel provides growth opportunities. Also integrating it with existing natural gas-based methanol production infrastructure widens the scope.
Threats: Volatility in raw material prices poses risks. Established dominance of traditional fossil fuels in end use sectors challenges rapid adoption of renewable methanol.
Key Takeaways
The global Renewable Methanol Market Growth is expected to witness high growth. The Asia Pacific region currently dominates the market owing to presence of major methanol producers and consumers in countries like China and India. Countries in the region are actively promoting use of renewable fuels to reduce carbon emissions.
Key players operating in the renewable methanol market are Methanex Corporation, Carbon Recycling International, BioMCN, Enerkem, and Chemrec Inc. Major players are investing in capacity expansion and developing novel production technologies to lower costs. strategic partnerships along the value chain are also seen.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
