Green Methanol Market to Hit $23.19B by 2032, Driven by Decarbonization and Clean Energy Demand | DataM Intelligence

Green Methanol Market surges as industries adopt carbon-neutral fuels. Driven by clean tech, it's set to exceed $23B by 2032.

NEW YORK, NY, UNITED STATES, June 10, 2025 /EINPresswire.com/ -- Market Overview :

Green Methanol Market is emerging as a game-changer in the transition toward low-carbon fuels. Derived from renewable sources such as biomass, CO₂ captured from industrial processes, and green hydrogen, green methanol offers a clean, sustainable alternative to traditional fossil fuels. Its applications range from transportation and energy storage to the chemical industry. In 2024, the Green Methanol Market was valued at US$ 2.13 billion and is projected to reach US$ 23.19 billion by 2032, growing at an impressive CAGR of 34.78% during 2025–2032. Amid growing decarbonization demands across industries, green methanol is emerging as a key enabler of global sustainability objectives.

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Market Drivers are :

Growing demand for carbon-neutral fuels: Green methanol serves as a cleaner substitute for conventional fuels in shipping, aviation, and road transport.

Supportive government regulations and policies: Global initiatives promoting net-zero carbon emissions are pushing industries to adopt renewable fuels like green methanol.

Rising interest in circular economy solutions: Green methanol production can utilize industrial CO₂ emissions and waste biomass, aligning with circular sustainability models.

Surging investments in hydrogen technologies: Green hydrogen, a key feedstock for green methanol, is gaining traction due to increasing investments and falling production costs.

Decarbonization of the shipping sector: The International Maritime Organization’s (IMO) low-emission goals are driving shipping companies to transition to green methanol-based fuels.

Advances in methanol fuel cells: Technological developments in methanol-based fuel cells are enhancing their commercial viability, especially for off-grid and mobile applications.

Key Market Players :

The competitive landscape includes major players innovating in production technologies, feedstock sourcing, and strategic partnerships. Key players include:

Carbon Recycling International (CRI)

BASF SE

Methanex Corporation

Proman AG

OCI N.V.

Enerkem

Liquid Wind

Thyssenkrupp AG

Ørsted A/S

European Energy A/S

These companies are actively expanding capacity, entering renewable energy partnerships, and scaling carbon capture integration to lead the green methanol shift.

Market Segmentation :

By Feedstock :

Biomass
CO₂ + Green Hydrogen
Municipal Solid Waste

By Application :

Transportation Fuel
Power Generation
Chemical Feedstock
Marine Fuel
Others

By End-Use Industry :

Automotive
Chemicals
Maritime
Power & Utilities

By Region :

North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

Europe currently dominates the market, driven by proactive sustainability goals, but Asia-Pacific is quickly catching up due to rising energy demands and government incentives.

Latest News – USA

In 2024, Methanex Corporation and Proman USA jointly announced plans to retrofit their existing Louisiana facilities to produce green methanol using carbon capture and renewable hydrogen. Additionally, the U.S. Department of Energy (DOE) committed funding toward green methanol as part of its broader Hydrogen Shot initiative, encouraging the fuel’s use in long-haul transport and marine applications.

Latest News – Japan

Japan is taking bold steps to promote green fuels, with Mitsui O.S.K. Lines (MOL) signing a strategic agreement with Liquid Wind to import green methanol for its next-gen vessels. The Japanese Ministry of Economy, Trade and Industry (METI) also included green methanol in its 2024 roadmap to achieve zero-emission shipping by 2050, emphasizing fuel diversification and infrastructure upgrades at major ports.

Key Developments :

Carbon Recycling International (CRI) launched its largest CO₂-to-methanol plant in Iceland with a 100,000-ton capacity.

BASF SE joined forces with Ørsted to harness offshore wind energy for producing green methanol at a facility in Germany.

Thyssenkrupp AG announced plans to offer turnkey green methanol plants integrated with electrolysis systems.

OCI N.V. began construction on one of the world’s largest green methanol hubs in the Netherlands.

Enerkem secured financing for a new waste-to-methanol plant in Quebec, targeting both chemical and fuel markets.

Conclusion :

As industries worldwide pivot toward cleaner and more sustainable fuel options, green methanol is rapidly gaining momentum.

Its adaptability, renewable feedstock base, and compatibility with existing infrastructure make it a compelling solution for reducing emissions across multiple sectors. With robust support from governments, rising industrial investment, and continuous technological innovation, the green methanol market is poised for rapid growth in the years to come.

Sai Kumar
DataM Intelligence 4market Research LLP
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