Green Methanol Market Report 2026

The green methanol market size has grown exponentially in recent years. It will grow from $1.96 billion in 2025 to $2.47 billion in 2026 at a compound annual growth rate (CAGR) of 26%. The growth in the historic period can be attributed to conventional methanol usage, shipping fuel demand, fossil fuel dependency, early biofuel initiatives, chemical industry growth.

The green methanol market size is expected to see exponential growth in the next few years. It will grow to $6.17 billion in 2030 at a compound annual growth rate (CAGR) of 25.7%. The growth in the forecast period can be attributed to shipping decarbonization targets, green fuel mandates, renewable hydrogen expansion, carbon neutrality commitments, sustainable energy investments. Major trends in the forecast period include rising adoption of low carbon marine fuels, growing demand for renewable chemical feedstocks, expansion of e methanol projects, increased investment in bio methanol production, focus on net zero fuel solutions.

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 Methanex Corporation, Carbon Recycling International, Liquid Wind AB, Proman AG, Enerkem Inc., OCI N.V., Haldor Topsoe A/S, Johnson Matthey plc, thyssenkrupp Uhde GmbH, Ørsted A/S, Oberon Fuels Inc., SunMethanol, Greenlane Renewables, Neste Oyj, Raízen Energia, Equinor, Eni, Shell plc, Repsol, White Summit Capital.

Asia-Pacific was the largest region in the green methanol market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the green 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 green methanol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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