Green Methanol Global Market Report 2025

The green methanol market size has grown exponentially in recent years. It will grow from $1.55 billion in 2024 to $1.96 billion in 2025 at a compound annual growth rate (CAGR) of 26.2%. The growth in the historic period resulted from increasing adoption of renewable fuels, rising government incentives for low-carbon technologies, growing awareness of sustainable chemical production, rising utilization of biomass feedstocks, and increasing demand from the marine and transportation sectors.

The green methanol market size is expected to see exponential growth in the next few years. It will grow to $4.91 billion in 2029 at a compound annual growth rate (CAGR) of 25.8%. The growth in the forecast period will be driven by increasing investments in green hydrogen production, rising deployment of carbon capture technologies, growing corporate sustainability commitments, expanding green methanol production capacities, and increasing policy support for net-zero emissions. Major trends in the forecast period include advancements in carbon capture and utilization technologies, integration of green methanol in maritime fuel applications, innovation in electrolysis and synthesis processes, development of bio-based methanol production pathways, and progress in the digitalization of methanol production and supply-chain operations.

The growing adoption of renewable energy sources is expected to drive the growth of the green methanol market. Renewable energy sources, such as solar, wind, hydro, and geothermal power, are naturally replenishing and provide low-carbon energy for industrial production. The increase in renewable energy is primarily driven by government efforts to expand clean energy targets and provide incentives that accelerate investments in new renewable capacity. Green methanol plays a key role in supporting renewable energy by converting intermittent sources like wind and solar power into a storable, transportable, and low-carbon fuel, which helps enhance the flexibility and reliability of the overall energy system. For example, in March 2024, the International Renewable Energy Agency (IRENA) reported that US renewable energy capacity grew from 356,413 MW in 2022 to 387,549 MW in 2023, reflecting an 8.7% increase. This growing reliance on renewable energy is driving the expansion of the green methanol market.

Key players in the green methanol market are focusing on technological innovations, such as dual-carbon conversion technology, to improve production efficiency and reduce costs, making green methanol a more scalable and viable alternative to traditional fossil fuels. Dual-carbon conversion technology enhances methanol synthesis by using both carbon dioxide and carbon monoxide as feedstocks, improving carbon utilization and reducing energy consumption. For instance, in April 2024, Shanghai Electric Group Co. Ltd., a China-based power equipment company, launched its Taonan green methanol project. The project features a modular electrolysis unit, a CO₂-to-methanol catalytic loop, and a ship bunkering-ready logistics interface. The modular design reduces installation time, the catalytic loop improves yield efficiency, and the bunkering interface allows for direct use in maritime fuel applications. These innovations streamline production and supply chain integration, speeding up deployment and improving cost-efficiency while supporting decarbonization goals. However, challenges remain, including high upfront capital expenditure (capex) and uncertainties around offtake contracts.

In June 2025, Methanex Corporation, a Canada-based global methanol production and supply company, acquired OCI Global’s international methanol business for USD 2.05 billion. This acquisition allows Methanex to significantly expand its production capacity while strategically incorporating low-carbon assets into its product portfolio, strengthening its competitive position in the green methanol market. OCI Global, based in the Netherlands, manufactures and distributes green methanol under its OCI HyFuels brand, which is used as a low-carbon fuel for shipping and other industries.

Major companies operating in the green methanol market are Mitsui & Co. Ltd., Eni S.p.A., Veolia Environnement S.A., Thyssenkrupp Industrial Solutions AG, Johnson Matthey plc, Andritz AG, KBR Inc., Mitsubishi Gas Chemical Company Inc., Methanex Corporation, Haldor Topsoe A/S, Södra Skogsägarna ekonomisk förening, Alberta-Pacific Forest Industries Inc., Enerkem Inc., HIF Global Holdings Ltd., Liquid Wind AB, European Energy A/S, Avaada Energy Private Limited, Proman AG, GIDARA Energy B.V., SunGas Renewables Inc.

Asia-Pacific was the largest region in the green methanol market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in green methanol report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the green methanol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The intensifying U.S. tariffs and escalating trade tensions in spring 2025 are expected to have a significant impact on the chemicals sector, which is bearing a disproportionate burden, particularly from tariffs on petrochemicals and intermediates, where affordable domestic substitutes are often unavailable. Producers of specialty chemicals, heavily dependent on Chinese raw materials, are experiencing production disruptions. At the same time, fertilizer manufacturers are seeing profit margins eroded due to tariffs on phosphate imports. In response, companies are ramping up R&D into bio-based alternatives, forming procurement alliances to consolidate buying power, and shifting production to tariff-neutral nations such as Saudi Arabia.

The green methanol market research report is one of a series of new reports that provides green methanol market statistics, including the green methanol industry global market size, regional shares, competitors with the green methanol market share, detailed green methanol market segments, market trends, and opportunities, and any further data you may need to thrive in the green methanol industry. This green methanol market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Green methanol is a sustainable form of methanol produced from renewable sources such as biomass, carbon dioxide, or green hydrogen instead of fossil fuels. It acts as a low-carbon alternative to conventional methanol, helping significantly reduce greenhouse gas emissions. Green methanol is used as a clean fuel, chemical feedstock, and energy carrier in sectors such as transportation, power generation, and chemicals, supporting the global shift toward a circular and carbon-neutral economy.

The main types of green methanol include e-methanol and biomethanol. E-methanol is produced by combining captured carbon dioxide with green hydrogen generated from renewable electricity. The various feedstocks include CO₂ emissions, municipal solid waste, agricultural waste, forestry residues, and others. These products are sold through sales channels such as direct sales, distributors, and online platforms. They are used in applications such as marine fuel, transportation, power generation, and agriculture, and serve end-user industries including automotive, aerospace, shipping, and energy and utilities.

The green methanol market consists of sales of electrolyzers, biomass gasifiers, carbon capture units, methanol synthesis reactors, hydrogen storage tanks, co₂ storage tanks, and renewable hydrogen. 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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