Renewable Methanol Market Witness High Growth Due To Rising Demand For Green Fuel
Renewable methanol is a clean burning fuel that can be produced from various renewable resources like agricultural waste, human waste, green waste, and municipal solid waste along with CO2 captured from industrial sources. It is gaining popularity as a marine fuel and for producing chemicals, plastics, and transportation fuels due to its cleaner combustion and green production process. Renewable methanol can directly replace emissions-intensive fossil fuels in marine engines and fuel cells and act as a carrier for hydrogen. The green methanol market is dominated by fiberboard, formaldehyde, solvents, and MTBE.
The global renewable methanol market is estimated to be valued at US$ 212.35 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The renewable methanol market is witnessing high growth due to rising demand for low-emission green fuels from the transportation sector. The International Maritime Organization's regulations mandating a reduction in sulfur content in marine fuels from 3.5% to 0.5% have created opportunities for methanol as a marine fuel. Additionally, growing applications of methanol in hydrogen storage and fuel cells are further propelling the demand. However, availability of low-cost substitutes and need for dedicated infrastructure for storage and distribution of methanol remains a challenge for widespread adoption.
SWOT Analysis
Strength: Renewable methanol can be produced from various renewable resources like biomass feedstocks, renewable waste, renewable hydrogen and carbon dioxide. This gives production flexibility and ensures adequate resource availability. It is a clean renewable fuel that has very low emissions. Renewable methanol can be used for numerous applications like transportation fuel, fuel cells, synthetic chemicals and other industrial uses.
Weakness: Producing renewable methanol requires advanced technologies and specialized plants which make the initial infrastructure investment very high. It will take some time for the production processes to mature and costs to reduce significantly. Dependence on availability of renewable feedstocks and their prices can impact the overall production costs.
Opportunity: Growing concerns about global warming and climate change are driving policies and incentives towards promoting renewable and low carbon fuels. This provides a supportive market environment for renewable methanol to grow. Various regions and countries have announced targets andpolicies to increase usage of renewable fuels in transportation and other sectors. This opens up new opportunities.
Threats: Established fossil fuel industry and technologies have significantfirst mover advantage. Shift towards renewable methanol requires overcoming resistance from entrenched lobbying groups. Fluctuations in crude oil prices impact competing fossil fuel markets and can slow down adoption of renewable alternatives.
Key Takeaways
The global Renewable Methanol Market Growth is expected to witness high growth over the forecast period between 2023 to 2030 supported by favorable policies and increasing targets for decarbonization across sectors. The market size is projected to increase from US$ 212.35 Mn in 2023 to close to US$ 476 Mn by 2030, registering a CAGR of around 7.9% during the forecast period.
Regional analysis: Europe and North America currently dominates the renewable methanol space due to supportive policies and initiatives. Both regions cumulatively accounted for over 60% of market share in 2023. However, Asia Pacific is expected to emerge as the fastest growing regional market going forward mainly driven by high growth in China, Japan and South Korea. These countries are targeting renewable fuel usage in transportation and chemicals production.
Key players: Key players operating in the renewable methanol market are Methanex Corporation, Carbon Recycling International, BioMCN, Enerkem, Chemrec Inc., and Varmlands Methanol. Methanex Corporation is currently the largest producer while Enerkem, Chemrec and Carbon Recycling International are focusing on developing newer technological routes for renewable methanol production from different waste feedstocks. The market is expected to attract newer players looking to leverage the growth opportunities arising due to increasing demand.
For more insights, read- https://dailynewsmotion.weebly.com/report-blog/renewable-methanol-market-witness-high-growth-due-to-rising-demand-for-green-fuel
English
Arabic
Français
Español
Português
Deutsch
Türkçe
Dutch
Italiano
Romaian