Renewable methanol which is produced from biomass, waste materials, and CO2 from industrial processes or the atmosphere, is a sustainable alternative to conventional methanol derived from fossil fuels like natural gas or coal. It is a vital component in biodiesel production, which can be used as a chemical feedstock or blended with gasoline. Renewable methanol is manufactured using carbon dioxide instead of carbon monoxide, making it similar to conventional methanol. Its high hydrogen to carbon ratio leads to a higher-octane number and reduced greenhouse gas emissions, which is why it is expected to gain popularity in the transportation and manufacturing sectors.
The production of renewable methanol from agricultural and industrial waste presents opportunities for future expansion of the industry. The main source of renewable methanol is biomass, and its use in various solvents and chemical feedstocks is expected to generate significant growth prospects. The demand for high-octane fuel ethers like Methyl-tert-butyl-ether (MTBE), used in the production of biodiesel, is projected to rise due to increased demand from the automotive and transportation sectors. Additionally, the market for renewable methanol is expected to be driven by an increase in demand for the production of formaldehyde from methanol, which has significant applications in paints, coatings, and construction.
However, the industry has been negatively impacted by the COVID-19 pandemic, which has interrupted building operations and halted the expansion of plants and factories. The efficiency of value chains in various sectors, including construction, paints & coatings, electronics, and packaging, has also been affected by the closure of national and international borders. Despite these challenges, the demand for methanol products in the pharmaceutical sector is expected to fuel market growth in the coming years.
Government restrictions and prohibitions in response to the pandemic have also constrained the expansion of the methanol industry due to factors such as a lack of raw materials, restricted working hours and labor force, decreased demand, and limited financial resources. However, the chemical and petrochemical sectors have been recovering since the middle of the previous year when the pandemic began to recede. Although the exponential increase in chemical demand in end-user industries continues to exert pressure on the methanol market, the industry is anticipated to grow.
Renewable Methanol Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Advanced Chemicals Technologies, BASF SE, Carbon Recycling International (CRI), ENERKEM, Fraunhofer, Innogy, Nordic Green, OCI N.V., SERENERGY A/S, SODRA
Global Renewable Methanol Market Segmentation:
By Feedstock: Based on the Feedstock, Global Renewable Methanol Market is segmented as; Agricultural Waste, Forestry Residues, Municipal Solid Waste, Co2 Emissions, Others
By Application: Based on the Application, Global Renewable Methanol Market is segmented as; Formaldehyde, Dimethyl ether, Gasoline. Solvents, others
By End Use: Based on the End Use, Global Renewable Methanol Market is segmented as; Chemicals, Transportation, Power Generation, Others
By Region: Europe and North America are anticipated to become important markets for renewable methanol. The tight government regulations on carbon emissions in the two regions, Regulations in Europe requiring the use of certain products and their mixes in the automotive sector are also anticipated to increase demand for local products. The examination of Asia-Pacific, Europe, North America, and the Rest of the World is included in the evaluation of the worldwide renewable methanol market growth. Throughout the projected period, both volume and revenue are expected to increase at the greatest CAGR in Europe. The implementation of different tactics, such as agreements and collaborations between major players, as well as key factors including advances in the wind and solar sectors and the growing need for power generation, are what are driving the market expansion.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.