Growing Environmental Concerns Across Many Nations Globally to Propel the Growth of the Global Green Methanol Market by 2031

Green methanol is a renewable and sustainable alternative to traditional methanol that is produced from fossil fuels. It is also known as bio-methanol, and it is produced from renewable resources such as biomass or captured carbon dioxide. Green methanol is seen as a critical component in the decarbonization of the transportation sector and other industrial applications. It is also used for power generation. It can be blended with gasoline to reduce emissions and used as a feedstock for the production of chemicals and plastics. The production of green methanol requires a significant amount of energy, which must come from renewable sources to ensure that it is truly sustainable. This energy must be produced from renewable sources, which is a challenge in some regions. Green methanol is highly flammable and requires special handling and storage to ensure safety. 

Forecast Analysis of the Global Green Methanol Market

According to the report published by Research Dive, the global green methanol market is anticipated to generate a revenue of $12,478.5 million and grow at a stunning CAGR of 37.8% over the estimated period from 2022 to 2031. The rising government regulations and incentives to reduce dependency on traditional fossil fuels and promote the use of renewable energy resources is expected to bolster the growth of the green methanol market during the analysis period. Moreover, the growing potential of green methanol for a wide range of applications across various industries such as power generation, chemical production, transportation, and many more is expected to create immense growth opportunities for the market over the estimated period. However, the high production costs of green methanol may restrict the growth of the market throughout the forecast timeframe. 

The major players of the green methanol market include Vertimass LLC, BASF SE, Uniper SE, Methanex Corporation, OCI N.V., Carbon Recycling International, Enerkem, Nordic Green, Fraunhofer, Innogy, and many more. 

Key Developments of the Green Methanol Market

The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global green methanol market to grow exponentially. For instance:

• In September 2021, LEGO, a leading manufacturer of plastic-constructed toys, agreed to buy e-methanol for the use of its colorful plastic bricks to provide a substitute for fossil-based plastics. The company would also start using recycled materials from plastic bottles to manufacture its products.
   
• In March 2023, Maersk, a Danish shipping and logistics company announced its partnership with Shanghai International Port Co., Ltd., a large-scale specialized conglomerate. With this partnership, the companies would study green methanol fuel vessel-to-vessel bunkering to deliver green methanol box ships to Maersk in the coming years between 2023 to 2025.
   
• In April 2023, Jackson Green, an India-based leading player in the renewable and new energy space won the first project from National Thermal Power Corporation (NTPC) to establish a Methanol synthesis facility in Madhya Pradesh. This facility would have a production capacity of 10 tons per day.

Most Profitable Region

The Asia-Pacific region of the green methanol market is predicted to have the fastest growth over the estimated timeframe. This is mainly because of the greater production capabilities of green methanol in this region using advanced technologies. Moreover, the rising demand for sustainable and renewable energy sources along with supportive government policies in the region is predicted to drive the regional growth of the market during the estimated period.

Covid-19 Impact on the Global Green Methanol Market

The rise of the novel coronavirus has brought several uncertainties across various industries including the green methanol market. This is mainly due to the reduction in production capacity due to the disrupted global supply chains during the pandemic period. Additionally, the outbreak of the pandemic has shifted the governments’ attention toward healthcare & emergencies which has reduced the funding & support for renewable energy projects. All these factors have decreased the growth of the market throughout the crisis.