Carbon Dioxide Recycling Methanol Market Report 2026

The carbon dioxide recycling methanol market size has grown rapidly in recent years. It will grow from $7.04 billion in 2025 to $8.15 billion in 2026 at a compound annual growth rate (CAGR) of 15.7%. The growth in the historic period can be attributed to methanol demand growth, industrial carbon emissions, fossil based methanol production, chemical feedstock demand, early carbon capture initiatives.

The carbon dioxide recycling methanol market size is expected to see rapid growth in the next few years. It will grow to $14.46 billion in 2030 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to net zero emission targets, renewable hydrogen expansion, sustainable fuel adoption, carbon pricing mechanisms, green chemical investments. Major trends in the forecast period include rising adoption of carbon capture utilization, growing demand for low carbon methanol, expansion of green hydrogen integration, increased investment in catalytic conversion, focus on circular carbon economy.

Rising concerns about greenhouse gas emissions are expected to drive the growth of the carbon dioxide recycling methanol market in the coming years. Greenhouse gas emissions, which trap heat in the atmosphere and contribute to global warming, arise from both human activities and natural sources. These concerns are increasing due to heightened fossil fuel combustion, which releases significant amounts of carbon dioxide, intensifying climate change impacts and environmental instability. Carbon dioxide recycling methanol addresses this challenge by capturing CO₂ from industrial sources and converting it into methanol, reducing atmospheric carbon levels and promoting a circular carbon economy. For example, in October 2025, a report by the Joint Research Centre (JRC), a Belgium-based research organization, indicated that circular economy measures in heavy industries could cut 189 to 231 million tons of CO₂ emissions annually by 2050. These reductions result from improved materials management, reuse, and recycling in sectors such as steel and plastics, decreasing reliance on fossil fuels and imports. Consequently, rising concerns about greenhouse gas emissions are propelling the carbon dioxide recycling methanol market.

Key players in the carbon dioxide recycling methanol market are emphasizing technological innovations, such as ETL methanol synthesis technology, to increase efficiency, reduce carbon emissions, lower production costs, and improve overall sustainability. ETL methanol synthesis technology is an advanced process that converts carbon dioxide and hydrogen into methanol using highly efficient catalysts and optimized reaction conditions, enhancing yield and minimizing carbon emissions. For instance, in October 2024, CRI hf., an Iceland-based technology company, is set to supply its proprietary e-methanol technology for one of the world’s largest e-methanol plants. The project is designed to convert carbon dioxide and renewable hydrogen into methanol at a large scale, demonstrating CRI’s expertise in advanced methanol synthesis, supporting global efforts to reduce greenhouse gas emissions, and advancing the circular carbon economy while promoting clean energy solutions.

In June 2025, Methanex Corporation, a Canada-based chemical company, acquired the international methanol business of OCI N.V. for an undisclosed amount. Through this acquisition, Methanex Corporation aims to enhance its global methanol production capacity, improve supply chain efficiency, and leverage OCI N.V.’s advanced production assets and technological expertise to expand market presence and meet growing demand for sustainable methanol solutions. OCI N.V., based in the Netherlands, is a chemical and fertilizer company that provides carbon dioxide recycling methanol.

Major companies operating in the carbon dioxide recycling methanol market are Mitsui & Co. Ltd., Mitsubishi Heavy Industries Ltd., Sumitomo Chemical Co. Ltd., Johnson Matthey Plc, Mitsubishi Gas Chemical Company Inc., Methanex Corporation, Clean Energy Methanol Corp, KT TECH S.p.A., Carbon Recycling International hf, Proman AG, NextGen Methanol Technologies, Blue Planet Methanol, Advanced Carbon Recycle Technologies, Innox Nova Sp. z o.o., METTOC SE, Liquid Wind AB, Twelve Inc., European Energy, LanzaTech, Haldor Topsøe A/S, Svante Inc., Climeworks AG, Carbon Engineering Ltd., Global Thermostat, Siemens Energy AG, Air Liquide.

North America was the largest region in the carbon dioxide recycling methanol market in 2025. The regions covered in the carbon dioxide recycling methanol market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carbon dioxide recycling methanol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The carbon dioxide recycling methanol market consists of revenues earned by entities providing services such as carbon capture and purification services, distribution and logistics services, process monitoring services, technical consultation services, and plant construction services. The market value includes the value of related goods sold by the service provider or included within the service offering. The carbon dioxide recycling methanol market also includes sales of renewable methanol, dimethyl ether, fuel additives, paints and coatings, and synthetic fibers. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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