Renewable methanol is a second-generation methanol derived from renewable energy sources mainly from biomass and industrial wastage. It is an important input for biodiesel production, which can be processed as a chemical feedstock or blended in automobile fuels. The production of renewable methanol is similar to conventional methanol where carbon dioxide is substituted for carbon monoxide. It has high octane rating owing to high hydrogen to carbon ratio and helps in curbing greenhouse effects on the environment.
Global rise in carbon dioxide emissions coupled with stringent environmental regulations to reduce the impact of carbon dioxide has fueled the demand for renewable methanol with application in the transportation and industrial sectors. Moreover, the conversion of agricultural and industrial wastages into renewable methanol is also expected to create potential growth opportunities in the coming years. Biomass is the primary source of generation of renewable methanol and the market is expected to create lucrative growth opportunities owing to the application in various solvents and chemical feedstock. High-octane fuel ethers such as Methyl-tert-butyl-ether (MTBE) used in the production of biodiesel is likely to witness growth with demand from the automobile and transportation end use segments. Moreover, the growing demand for production of formaldehyde from methanol is expected to drive the renewable methanol market with major applications in paints & coatings and construction. However, availability of feedstock and lack of infrastructural setups are expected to hinder the market growth, but growing environmental regulations on reducing greenhouse gases coupled with research and development are anticipated to boost the market growth.
North America and Europe are the major markets for renewable methanol owing to the favorable governmental amendments and increase in automobile applications. In addition, regulatory policies in Europe for mandatory use of renewable methanol blends in automobile fuels are expected to augment its demand. Furthermore, the renewable methanol market has also gained traction from emerging economies like China and India in recent years and is likely to create growth opportunities in the coming years.
The report on the global renewable methanol market is segmented based on source, application, end-use, and geography. Based on source, the market is segmented into municipal waste, industrial waste, biomass, and others. Based on application, it includes, formaldehyde, MTBE, gasoline, dimethyl ether, solvents, and others. Based on end user, the report is categorized into construction, chemicals, transportation, power generation, and others. Geographically, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA.
Top market Players in global renewable market include BioMCN, Carbon Recycling International Inc., Blue Fuel Energy, Chemrec AB, Varmsland Methanol, Methanex Corporation, Enerkemand, BASF SE, Petronas, Mitsubishi Chemicals, and Statoil.
Renewable Methanol Market Key Segmentation
- Municipal waste
- Industrial waste
- Dimethyl ether
By End User
- Power generation
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- South Africa
- Saudi Arabia
- Rest of LAMEA.