DELRAY BEACH, Fla., May 12, 2025 /PRNewswire/ -- The report "Green Methanol Market by Feedstock (Biomass, Green Hydrogen, CCS), Derivative (Formaldehyde, Dimethyl Ether & Methyl Tert-Butyl Ether, Gasoline, Methanol-to-Olefin, Solvents), Application (Chemical Feedstock, Fuel), and Region - Global Forecast to 2030", green methanol market is projected to grow from USD 2.59 billion in 2025 to USD 11.18 billion by 2030, achieving a CAGR of 34.0% during that period.
This growth is driven by a rising focus on reducing greenhouse gas emissions and addressing climate change, which is increasing the demand for green methanol as a sustainable alternative to traditional fossil fuel-derived methanol. Additionally, government policies that promote renewable energy usage and aim to decrease greenhouse gas emissions are further fueling investment and expansion in the green methanol market.
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From 2025 to 2030, the biomass segment will be the largest, by volume, in the green methanol market.
The biomass segment is a rapidly growing component of the green methanol market, leveraging a range of organic materials such as agricultural residues, forestry waste, and municipal solid waste. Biomass is a renewable resource that can be replenished consistently, ensuring a reliable supply for methanol production. Furthermore, government incentives for using renewable resources like biomass make the production of biomethanol economically attractive. Compared to other renewable sources, such as hydrogen derived from electrolysis, biomass is often a more cost-effective feedstock.
By application, the fuel segment will be the fastest growing in the green methanol market from 2025 to 2030.
The transportation sector, especially shipping, requires low-carbon alternatives to comply with strict emissions regulations. Green methanol is emerging as a sustainable substitute for conventional fossil fuels. The International Maritime Organization (IMO) has implemented regulations aimed at reducing greenhouse gas emissions, which has increased interest in green methanol as a marine fuel due to its lower emissions compared to traditional bunker fuels. Additionally, government incentives and subsidies for green fuels are promoting the adoption of green methanol as a primary alternative fuel in various applications, including vehicles and ships. Green methanol is a leading option in the transition to a sustainable and low-carbon energy future.
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North America is the leading region in the green methanol market.
North America leads in the green methanol market in terms of CAGR, driven by regulatory support such as Canada's Clean Fuel Standard and the US Renewable Fuel Standard. Technological advancements, such as Carbon Clean Solutions' MTJet for sustainable aviation fuel, and significant industry collaborations, such as those of Methanex and Gevo Inc., further boost growth. Government funding and incentives, along with growing adoption in the maritime and aviation sectors, underscore the region's commitment to sustainable energy solutions. Additionally, investments in carbon capture and utilization technologies and the integration of green methanol with hybrid electric systems enhance its appeal across various industries, positioning North America at the forefront of the global green methanol market.
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Leading global green methanol manufacturers include Enerkem Inc. (Canada), Carbon Recycling International Inc. (Iceland), Methanex Corporation (Canada), Proman (Switzerland), and Södra (Sweden).
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