Green Methanol Market Analysis 2025–2032 | Applications, Drivers & Leading Companies

Green Methanol Market to grow rapidly as demand for low-carbon fuels rises, driven by clean energy goals and industrial adoption.

AUSTIN, NM, UNITED STATES, August 5, 2025 /EINPresswire.com/ -- Green Methanol Market Overview

The global Green Methanol Market is gaining significant traction as governments and industries seek sustainable, low-carbon alternatives to traditional fossil fuels. Green methanol produced from renewable sources such as biomass, carbon dioxide, and green hydrogen is fast emerging as a key solution for reducing greenhouse gas emissions in transportation, chemicals, and power generation sectors.

Market size and growth

The worldwide green methanol industry was valued at roughly $2.13B in 2024 and is projected to climb to about $23.19B by 2032, expanding at a swift CAGR over the forecast period 34.8% from 2025 to 2032.

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Latest Developments:

In January 2024, BASF teamed up with Envision Energy to design an advanced system that transforms carbon dioxide and green hydrogen into e-methanol.

Dec 2023 - Perpetual Next announced plans to establish another bio-methanol plant in Estonia, aiming to boost its output capacity. The facility will produce 220 kilotons annually and is set to start operations in 2027.

Also, in December 2023, Cepsa and C2X revealed a joint plan to invest over $1 billion in building a new green methanol production unit. The initiative is designed to cater to growing worldwide needs across sectors like maritime transport, aerospace, and the chemical industry

Sep 2023 - OCI Global announced its strategy to ramp up green methanol production in the U.S. through a new 400-KT plant, slated for operation by 2025.

Market Drivers and Opportunities

Net-Zero Targets: Growing worldwide pledges for carbon neutrality are pushing the need for eco-friendly fuels, particularly in sectors that are tough to decarbonize.

Regulatory Support: Favorable policies, tax credits, and green fuel mandates are supporting the growth of green methanol production facilities worldwide.

Sustainable Shipping and Aviation: The marine industry is investing heavily in green methanol as a sustainable fuel to meet IMO emission targets.

Carbon Capture Utilization: Integration of carbon capture technology with green methanol production creates a win-win for emissions control and fuel generation.

Regional Share

Europe currently leads the green methanol market, owing to strict carbon regulations and major project announcements. However, North America and Asia-Pacific are rapidly emerging markets, with the United States and Japan making significant strides in infrastructure development and technology deployment. In Asia, Japan is driving innovations in hydrogen-based methanol, while China is investing in biomass conversion plants.
Asia-Pacific is becoming the top player in the green methanol market, mainly because China is rapidly boosting production. By late 2025, China is expected to make and use about 90% of the region’s total supply.

Key Players

Ørsted A/S
A.P. Moller – Maersk A/S
Carbon Recycling International (CRI)
Proman AG
Methanex Corporation
OCI N.V.
BASF SE
Liquid Wind AB
WasteFuel
Southern Green Gas

These companies are at the forefront of commercial-scale production and partnerships aimed at accelerating green methanol deployment.

Market Segments:

By Type: (Biomethanol, E-Methanol)

By Production Route: (Power to Methanol, Biomethane Reforming, Biomass Gasification, Waste to Methanol)

By Application: (Chemical, Fuel)

By Region: (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa)

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Recent Developments in the United States

March 2025 - A U.S.-based energy startup announced the construction of a large-scale green methanol plant in Texas, utilizing captured CO₂ and green hydrogen from solar-powered electrolysis.

October 2024 - A partnership between a major shipping firm and a methanol producer was established to retrofit cargo ships for dual-fuel green methanol operations, enhancing sustainable maritime transport.

Recent Developments in Japan

May 2025 - A Japanese alliance announced a trial initiative to create green methanol using city waste and renewable H₂, with plans to scale up for full commercial launch by 2027

Dec 2024 - A major Japanese chemical firm reported R&D advancements in turning industrial CO₂ emissions into green methanol via cutting-edge catalytic tech, aiming to lower the carbon footprint of chemical feedstocks.

Conclusion

With sustainability targets tightening and industrial decarbonization gaining momentum, the global green methanol sector is set for rapid, large-scale expansion. With strong support from regulatory frameworks, advancements in renewable technology, and increasing cross-industry collaborations, green methanol is set to play a transformative role in the global energy transition.

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Sai Kiran
DataM Intelligence 4Market Research LLP
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sai.k@datamintelligence.com
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