Renewable Methanol Market Report Scope & Overview:

The Renewable Methanol Market size was valued at USD 2.41 Billion in 2025 and is projected to reach USD 42.42 Billion by 2035, growing at a CAGR of 33.29% during 2026-2035.

The Renewable methanol market is growing due to rising global decarbonization goals, stricter emission regulations, and increasing demand for low-carbon fuels across marine, transportation, and power sectors. Supportive government policies, carbon pricing mechanisms, and incentives for green fuels are accelerating adoption. Additionally, advancements in carbon capture, green hydrogen, and power-to-methanol technologies, along with growing interest in sustainable chemical feedstocks, are driving commercial production and market expansion worldwide.

Market Size and Forecast:

• Market Size in 2025 USD 2.41 Billion

• Market Size by 2035 USD 42.42 Billion

• CAGR of 33.29% From 2026 to 2035

• Base Year 2025

• Forecast Period 2026-2035

• Historical Data 2022-2024

Key Renewable Methanol Market Trends

• Accelerating adoption of renewable methanol in the maritime sector to meet International Maritime Organization (IMO) emission targets.

• Increasing integration of green hydrogen and carbon capture utilization (CCU) technologies in methanol production.

• Rapid growth of e-methanol and power-to-X projects, driven by declining renewable electricity and electrolyzer costs.

• Expansion of long-term offtake agreements for marine fuels, aviation blending, and green chemical applications.

• Strategic collaborations between technology providers, utilities, and end-users to scale production and global market penetration.

The U.S. Renewable Methanol Market size was valued at USD 0.67 Billion in 2025 and is projected to reach USD 11.37 Billion by 2035, growing at a CAGR of 32.75% during 2026-2035. The U.S. renewable methanol market is growing due to strong federal and state decarbonization policies, rising demand for low-carbon marine and transportation fuels, increased investment in carbon capture and green hydrogen technologies, and growing adoption of sustainable chemical feedstocks by industrial manufacturers.

Renewable Methanol Market Growth Drivers:

• Global Decarbonization and Maritime Demand Drive Renewable Methanol Market Growth and Green Technology Adoption

The global renewable methanol market is primarily driven by accelerating decarbonization efforts across energy, transportation, and chemical industries. Governments worldwide are implementing stringent emission regulations, carbon pricing mechanisms, and renewable fuel mandates, encouraging the shift from fossil-based methanol to low-carbon alternatives. Strong growth in the maritime sector, supported by International Maritime Organization (IMO) emission targets, is significantly increasing demand for renewable methanol as a cleaner marine fuel. Additionally, rising adoption of green chemicals by chemical and petrochemical manufacturers, along with advancements in carbon capture utilization (CCU), green hydrogen, and power-to-methanol technologies, are improving production efficiency and scalability. Increasing corporate sustainability commitments and investments from energy majors and shipping companies further support market growth.

The world’s first commercial-scale e-methanol plant opened in southern Denmark in 2025, producing 42,000 metric tons (≈53 million liters) of e-methanol annually using renewable energy and captured CO₂, with shipping giant Maersk as a key customer.

Renewable Methanol Market Restraints:

• Limited Production Infrastructure and Complex Technology Integration Restrain Global Renewable Methanol Market

Key restraints in the renewable methanol market include limited large-scale production infrastructure, technological complexity in integrating carbon capture and green hydrogen, inconsistent regulatory frameworks across regions, supply chain constraints for sustainable feedstocks, and uncertainty around long-term policy support and standardized certification for low-carbon methanol applications.

Renewable Methanol Market Opportunities:

• Rapid Expansion of E-Methanol and Power-to-X Projects Unlocks Global Renewable Methanol Opportunities

The market presents substantial opportunities through the rapid expansion of e-methanol and power-to-X projects, particularly as renewable electricity and electrolyzer costs decline. Growing investment in carbon capture infrastructure enables industrial CO₂ to be reused as a feedstock, creating circular carbon value chains. Emerging economies offer long-term growth potential as governments adopt clean fuel strategies and expand renewable energy capacity. Furthermore, the development of long-term offtake agreements in marine fuels, aviation blending, and green chemical production enhances revenue stability and project bankability. Strategic partnerships between technology providers, utilities, and end-users are expected to accelerate commercialization and global market penetration.

Japanese energy firm ENEOS and Maersk invested $100 million in C2X’s green methanol project in Louisiana, aimed at producing ~500,000 tonnes per year and capturing ~1 million tonnes of CO₂ for storage or use.

Renewable Methanol Market Segment Analysis

• By Feedstock, Biomass (agricultural residues, forestry waste) dominated with 45.24% in 2025, and Municipal Solid Waste (MSW) is expected to grow at the fastest CAGR of 34.11% from 2026 to 2035.

• By Production Technology, Gasification-to-Methanol dominated with 41.12% in 2025, and Power-to-Methanol (electrochemical using renewable H₂ & CO₂) is expected to grow at the fastest CAGR of 34.01% from 2026 to 2035.

• By Application, Transportation Fuels (marine, aviation, road blending) dominated with 40.73% in 2025, and it is expected to grow at the fastest CAGR of 33.80% from 2026 to 2035.

• By End-User Industry, Energy & Utilities dominated with 34.36% in 2025, Transportation & Maritime is expected to grow at the fastest CAGR of 33.96% from 2026 to 2035.

By Feedstock, Biomass Drives Renewable Methanol Production While Municipal Solid Waste Emerges as Key Future Feedstock

In 2025, biomass-based feedstocks such as agricultural residues and forestry waste remain the primary source for renewable methanol production, supported by established conversion technologies and wide availability. These feedstocks benefit from integration with existing biomass supply chains and waste valorization initiatives. From 2026 to 2035, municipal solid waste is expected to gain strong momentum as governments promote waste-to-fuel solutions to reduce landfill dependence and emissions. Increasing urbanization and stricter waste management regulations are accelerating the adoption of MSW-based renewable methanol projects globally.

By Deployment Mode, Gasification Leads Renewable Methanol Production While Power to Methanol Technologies Drive Future Decarbonization Growth

Gasification-to-methanol technology leads in 2025 due to its commercial maturity and successful deployment in biomass and waste-based projects. This pathway is widely adopted for its reliability and scalability. However, between 2026 and 2035, power-to-methanol technologies using renewable hydrogen and captured carbon dioxide are expected to expand rapidly. Falling renewable electricity costs, increased green hydrogen production, and stronger carbon utilization policies are driving interest in electrochemical and hydrogen-based methanol pathways for long-term decarbonization.

By End-User Industry, Transportation Fuels Drive Renewable Methanol Growth Boosting Marine Shipping Road Blending Aviation Applications Globally

Transportation fuels represent the leading application for renewable methanol in 2025, particularly in marine shipping, road fuel blending, and emerging aviation use. The segment benefits from tightening emission regulations and the need for drop-in low-carbon fuel alternatives. From 2026 to 2035, transportation fuels are expected to see accelerated adoption as more methanol-compatible vessels and engines enter service. Regulatory support, fuel standardization, and long-term supply agreements are strengthening renewable methanol’s role in global transport decarbonization strategies.

By Application, Energy and Utilities Lead Renewable Methanol Adoption While Transportation and Maritime Drive Future Growth

In 2025, the energy and utilities sector is the largest end-user of renewable methanol, driven by its use in power generation, energy storage solutions, and grid support applications. Utilities are increasingly adopting methanol to meet clean energy targets. Between 2026 and 2035, the transportation and maritime sector is expected to expand rapidly as shipping companies transition to low-emission fuels. Fleet conversions, new vessel orders, and international maritime regulations are key factors supporting long-term growth in this end-user segment.

Renewable Methanol Market Report Analysis

North America Renewable Methanol Market Insights

In 2025, North America dominated the global renewable methanol market, capturing a leading position with a market share of approximately 36.63%, driven by strong policy support, growing clean fuel demand, and advanced production infrastructure. The region benefits from federal and state incentives for low-carbon fuels, supportive regulatory frameworks, and significant private investment in renewable methanol and green hydrogen projects. Over 2026–2035, the North American market is also projected to grow robustly, propelled by accelerating adoption in marine fuels, chemical feedstocks, and energy applications, supported by expanding carbon capture and renewable energy initiatives that enhance long-term market prospects.

U.S. Renewable Methanol Market Insights

The United States dominated the North American renewable methanol market in 2025, driven by strong federal and state decarbonization policies, low-carbon fuel standards, expanding carbon capture projects, and rising demand from marine fuels, chemicals, and clean energy applications, supported by significant private and public investments.

Europe Renewable Methanol Market Insights

In 2025, Europe held a significant position in the renewable methanol market with about 31.28% share, driven by strong environmental policies like the EU Fit for 55 and FuelEU Maritime regulations promoting low-carbon fuels in shipping and industry. Europe has operational renewable methanol production plants and pioneering projects, including the world’s first commercial-scale e-methanol facility in Denmark, supplying fuel to major shipping lines. Investments in dual-fuel vessels and public initiatives, such as an EU-wide e-methanol procurement portal, are expanding cleaner fuel adoption and supporting the region’s transition to sustainable energy and maritime decarbonization.

Germany Renewable Methanol Market Insights

Germany dominated the European renewable methanol market in 2025, supported by strong industrial demand, advanced chemical manufacturing capacity, and strict climate policies. The country’s leadership in carbon capture utilization, green hydrogen deployment, and power-to-X projects has positioned it as a key hub for renewable methanol production and consumption in Europe.

Asia Pacific Renewable Methanol Market Insights

The Asia Pacific region is expected to witness the fastest growth in the Large-Scale AI Models market from 2026 to 2035, driven by rapid digital transformation, increasing adoption of AI across industries, and government-backed initiatives promoting AI research and innovation. Countries like China, Japan, and India are investing heavily in cloud infrastructure, high-performance computing, and AI startups. The region’s expanding demand for generative AI, multimodal models, autonomous systems, and AI-driven personalization positions Asia Pacific as a key growth hub in the global market.

China Renewable Methanol Market Insights

Asia Pacific is expected to record the fastest growth in the renewable methanol market from 2026 to 2035, with a projected CAGR of 34.04%, driven by rapid industrialization, expanding renewable energy capacity, and strong government support for clean fuels. Countries such as China, Japan, South Korea, and India are actively investing in green hydrogen, carbon capture, and power-to-X projects. Rising demand for low-carbon transportation fuels, increasing maritime trade, and growing adoption of sustainable chemical feedstocks are further accelerating renewable methanol production and consumption across the region.

Latin America (LATAM) and Middle East & Africa (MEA) Renewable Methanol Market Insights

The LATAM and MEA renewable methanol markets are emerging as strategic growth areas, supported by increasing renewable energy investments and government initiatives to reduce carbon emissions. In LATAM, countries are exploring biomass and waste-to-methanol projects linked to strong agricultural and waste feedstock potential. In MEA, abundant solar resources and growing interest in green hydrogen and carbon capture create opportunities for power-to-methanol developments. Regional collaborations and expanding industrial decarbonization efforts are enhancing market prospects.

Competitive Landscape for Renewable Methanol Market:

Methanex Corporation is the world’s largest producer and supplier of methanol, serving global markets with production facilities across North America, Latin America, Asia Pacific, Europe, and Africa. Headquartered in Vancouver, Canada, it integrates production with a dedicated shipping fleet and supply chain, and is advancing low-carbon and renewable methanol solutions including bio-methanol and e-methanol pathways. Methanex’s strategic acquisitions and focus on sustainability position it as a key leader in the transition toward cleaner fuels.

• In June 2025, Methanex finalized its purchase of OCI’s international methanol assets, including low-carbon methanol production and marketing businesses, expanding its global footprint and capacity.

Carbon Recycling International (CRI) is an Iceland-based company specializing in Emissions-to-Liquids (ETL) technology, which converts captured carbon dioxide and green hydrogen into renewable methanol, branded as Vulcanol. Founded in 2006, CRI operates commercial CO₂-to-methanol plants globally and licenses its technology to large-scale projects, promoting circular carbon utilization in energy and industrial sectors.

• In October 2024, CRI secured a landmark deal to supply its CO₂-to-methanol technology to a large-scale e-methanol plant in Liaoyuan, China, with first phase production expected in 2025.

Renewable Methanol Market Key Players:

Some of the Renewable Methanol Market Companies

• Methanex Corporation

• Carbon Recycling International (CRI)

• Enerkem Inc.

• BASF SE

• Proman AG

• OCI N.V.

• BioMCN

• Södra

• Advent Technologies

• Thyssenkrupp AG

• Veolia

• WASTEFUEL

• Mitsubishi Gas Chemical Company

• SABIC

• Celanese Corporation

• Nordic Green ApS

• Green Fuel Nordic Oy

• Liquid Wind AB

• Haldor Topsoe A/S

• Southern Chemical Corporation