Green Methanol Global Market Report 2026

Green methanol is a sustainable form of methanol produced from renewable sources such as biomass, carbon dioxide, or green hydrogen instead of fossil fuels. It acts as a low-carbon alternative to conventional methanol, helping significantly reduce greenhouse gas emissions. Green methanol is used as a clean fuel, chemical feedstock, and energy carrier in sectors such as transportation, power generation, and chemicals, supporting the global shift toward a circular and carbon-neutral economy.

The main types of green methanol include e-methanol and biomethanol. E-methanol is produced by combining captured carbon dioxide with green hydrogen generated from renewable electricity. The various feedstocks include CO2 emissions, municipal solid waste, agricultural waste, forestry residues, and others. These products are sold through sales channels such as direct sales, distributors, and online platforms. They are used in applications such as marine fuel, transportation, power generation, and agriculture, and serve end-user industries including automotive, aerospace, shipping, and energy and utilities.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have influenced the green methanol market by increasing costs of imported electrolyzers, renewable energy equipment, and processing systems. Marine fuel and chemical feedstock segments are most affected, especially in europe and asia pacific. Higher tariffs have impacted project economics and pricing structures. At the same time, tariffs are encouraging domestic renewable fuel production and regional green energy value chains.

The green methanol market research report is one of a series of new reports from The Business Research Company that provides green methanol market statistics, including green methanol industry global market size, regional shares, competitors with a green methanol market share, detailed green methanol market segments, market trends and opportunities, and any further data you may need to thrive in the green methanol industry. This green methanol market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The green methanol market size has grown exponentially in recent years. It will grow from $1.96 billion in 2025 to $2.47 billion in 2026 at a compound annual growth rate (CAGR) of 26.0%. The growth in the historic period can be attributed to conventional methanol usage, shipping fuel demand, fossil fuel dependency, early biofuel initiatives, chemical industry growth.

The green methanol market size is expected to see exponential growth in the next few years. It will grow to $6.17 billion in 2030 at a compound annual growth rate (CAGR) of 25.7%. The growth in the forecast period can be attributed to shipping decarbonization targets, green fuel mandates, renewable hydrogen expansion, carbon neutrality commitments, sustainable energy investments. Major trends in the forecast period include rising adoption of low carbon marine fuels, growing demand for renewable chemical feedstocks, expansion of e methanol projects, increased investment in bio methanol production, focus on net zero fuel solutions.

The growing adoption of renewable energy sources is expected to drive the growth of the green methanol market. Renewable energy sources, such as solar, wind, hydro, and geothermal power, are naturally replenishing and provide low-carbon energy for industrial production. The increase in renewable energy is primarily driven by government efforts to expand clean energy targets and provide incentives that accelerate investments in new renewable capacity. Green methanol plays a key role in supporting renewable energy by converting intermittent sources like wind and solar power into a storable, transportable, and low-carbon fuel, which helps enhance the flexibility and reliability of the overall energy system. For example, in March 2024, the International Renewable Energy Agency (IRENA) reported that US renewable energy capacity grew from 356,413 MW in 2022 to 387,549 MW in 2023, reflecting an 8.7% increase. This growing reliance on renewable energy is driving the expansion of the green methanol market.

Key players in the green methanol market are focusing on technological innovations, such as dual-carbon conversion technology, to improve production efficiency and reduce costs, making green methanol a more scalable and viable alternative to traditional fossil fuels. Dual-carbon conversion technology enhances methanol synthesis by using both carbon dioxide and carbon monoxide as feedstocks, improving carbon utilization and reducing energy consumption. For instance, in April 2024, Shanghai Electric Group Co. Ltd., a China-based power equipment company, launched its Taonan green methanol project. The project features a modular electrolysis unit, a CO2-to-methanol catalytic loop, and a ship bunkering-ready logistics interface. The modular design reduces installation time, the catalytic loop improves yield efficiency, and the bunkering interface allows for direct use in maritime fuel applications. These innovations streamline production and supply chain integration, speeding up deployment and improving cost-efficiency while supporting decarbonization goals. However, challenges remain, including high upfront capital expenditure (capex) and uncertainties around offtake contracts.

In June 2025, Methanex Corporation, a Canada-based global methanol production and supply company, acquired OCI Global's international methanol business for USD 2.05 billion. This acquisition allows Methanex to significantly expand its production capacity while strategically incorporating low-carbon assets into its product portfolio, strengthening its competitive position in the green methanol market. OCI Global, based in the Netherlands, manufactures and distributes green methanol under its OCI HyFuels brand, which is used as a low-carbon fuel for shipping and other industries.

Major companies operating in the green methanol market are Methanex Corporation, Carbon Recycling International, Liquid Wind AB, Proman AG, Enerkem Inc., OCI N.V., Haldor Topsoe A/S, Johnson Matthey plc, thyssenkrupp Uhde GmbH, Orsted A/S, Oberon Fuels Inc., SunMethanol, Greenlane Renewables, Neste Oyj, Raizen Energia, Equinor, Eni, Shell plc, Repsol, White Summit Capital

Asia-Pacific was the largest region in the green methanol market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the green methanol market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the green methanol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The green methanol market consists of sales of electrolyzers, biomass gasifiers, carbon capture units, methanol synthesis reactors, hydrogen storage tanks, co2 storage tanks, and renewable hydrogen. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Green Methanol Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses green methanol market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for green methanol ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The green methanol market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: E-Methanol; Bio-Methanol
• 2) By Feedstock: CO2 Emissions; Municipal Solid Waste; Agricultural Waste; Forestry Residues; Other Feedstocks
• 3) By Sales Channel: Direct Sale; Online Sales
• 4) By Application: Marine Fuel; Transportation; Power Generation; Agriculture
• 5) By End-User Industry: Automotive; Aerospace; Shipping; Energy And Utilities
• Subsegments:
• 1) By E-Methanol: Solar Based Production; Wind Based Production; Hydropower Based Production; Geothermal Based Production
• 2) By Bio Methanol: Agricultural Residue Based Production; Forestry Residue Based Production; Municipal Solid Waste Based Production; Biogas Based Production
• Companies Mentioned: Methanex Corporation; Carbon Recycling International; Liquid Wind AB; Proman AG; Enerkem Inc.; OCI N.V.; Haldor Topsoe A/S; Johnson Matthey plc; thyssenkrupp Uhde GmbH; Orsted A/S; Oberon Fuels Inc.; SunMethanol; Greenlane Renewables; Neste Oyj; Raizen Energia; Equinor; Eni; Shell plc; Repsol; White Summit Capital
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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