Green Methanol Fuel For Aviation Market Global Report 2026

The green methanol fuel for aviation market size has grown exponentially in recent years. It will grow from $1.02 billion in 2025 to $1.29 billion in 2026 at a compound annual growth rate (CAGR) of 26.4%. The growth during the historic period can be attributed to growing demand for low-carbon aviation fuels, increasing government support for aviation decarbonization, rising investment in renewable fuel production, expanding adoption of sustainable aviation fuel blending, and a higher focus on reducing greenhouse gas emissions.

The green methanol fuel for aviation market size is expected to see exponential growth in the next few years. It will grow to $3.25 billion in 2030 at a compound annual growth rate (CAGR) of 26.0%. The growth during the forecast period can be attributed to increasing commercial production of green methanol, rising demand for sustainable aviation fuel feedstocks, growing investment in renewable hydrogen infrastructure, expanding carbon capture and utilization projects, and greater adoption of net zero aviation strategies. Major trends in the forecast period include increasing investment in sustainable aviation fuel production, growing adoption of renewable carbon feedstocks, expanding green methanol production capacity, greater integration of carbon capture-based fuel pathways, and increasing strategic partnerships across aviation fuel value chains.

The increasing demand for sustainable aviation fuels is expected to drive the growth of the green methanol fuel for aviation market going forward. Sustainable aviation fuels are low-carbon alternatives to conventional jet fuels that help reduce greenhouse gas emissions from air transportation. The demand for sustainable aviation fuels is rising due to increasingly stringent carbon reduction targets, airline commitments toward net-zero emissions, and regulatory initiatives encouraging cleaner aviation energy sources. Green methanol contributes to sustainable aviation fuel production by serving as a renewable feedstock that can substantially reduce lifecycle carbon emissions while supporting diversification of fuel supplies. For instance, in December 2024, according to the International Air Transport Association (IATA), a Canada-based trade association of airlines, sustainable aviation fuel production reached 1 million tonnes (1.3 billion liters) in 2024, doubling from 0.5 million tonnes in 2023. Therefore, the increasing demand for sustainable aviation fuels is driving the growth of the green methanol fuel for aviation market.

Major companies operating in the green methanol fuel for aviation market are increasingly focusing on advancing methanol-to-jet (MTJ) technologies and securing regulatory approvals to accelerate sustainable aviation fuel (SAF) commercialization and expand the use of renewable feedstocks. Methanol-to-jet (MTJ) technology is a conversion process that transforms renewable methanol into sustainable aviation fuel, offering a scalable and lower-carbon alternative to conventional jet fuel. For instance, in June 2026, Honeywell International Inc., a US-based industrial technology company, announced that ASTM International had approved its UOP eFining methanol-to-jet pathway for sustainable aviation fuel production. The approval enables renewable methanol produced from captured carbon dioxide, renewable hydrogen, or biomass to be converted into SAF, expanding feedstock flexibility, lowering greenhouse gas emissions, and supporting the commercial-scale deployment of green methanol-based aviation fuels.

In May 2026, Swiss International Air Lines AG (SWISS), a Switzerland-based flag carrier airline, partnered with Metafuels AG to advance the production and adoption of sustainable aviation fuel (SAF). Through this partnership, Swiss International Air Lines AG aims to support the commercialization of synthetic SAF manufactured using green methanol-to-jet (MTJ) technology, helping increase the availability of low-carbon aviation fuels and accelerate decarbonization across the aviation sector. Metafuels AG is a Switzerland-based developer of methanol-to-jet (MTJ) technology that converts green methanol (bio-methanol or e-methanol) into sustainable aviation fuel (SAF).

Major companies operating in the green methanol fuel for aviation market are Shell plc, BP p.l.c., TotalEnergies SE, Repsol S.A., Johnson Matthey, Topsoe, AM Green Group, C2X, European Energy A/S, Twelve Benefit Corp, HIF Global LLC, SunGas Renewables Inc., DG Fuels LLC, Carbon Recycling International hf., Liquid Wind AB, WasteFuel Global LLC, Metafuels AG, CAC Engineering GmbH.

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

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