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Renewable energy

Green Methanol Market to Reach USD 19.08 Billion by 2032

Strategic Insights

— 2 min read

The growing pressure to decrease reliance on fossil fuels, along with international policy backing for low-carbon energy, is driving demand for green methanol in sectors like maritime shipping, power generation, and chemicals. Renewable methanol can be produced from sustainable feedstocks, including biomass, captured CO2, and green hydrogen, with the process conducted using methods such as gasification or power to liquid (PtL) synthesis. Green methanol is becoming a cornerstone fuel in a net-zero world, with the U.S. Green Methanol market size expected to reach USD 5989 million by 2032.

Key Takeaways:

  • The Green Methanol Market is valued at USD 2.07 billion in 2024 and is projected to reach USD 19.08 billion by 2032, expanding at a CAGR of 31.99 percent from 2025 to 2032.
  • Biomass dominated the green methanol market and accounted for about 56 percent of the market revenue in 2024.
  • The green methanol from biomass is obtained through various thermochemical routes, including gasification of agricultural and forest residues, and of organic municipal waste.
  • The biodiesel segment held the largest market share, around 22 percent, in 2024, driven by the increasing global demand for renewable and low-emission fuels.
  • Green methanol plays a vital role in biodiesel production, as it is used in the transesterification process to convert fats and oils into methyl esters (biodiesel).
  • The market is driven by the increasing global demand for renewable and low-emission fuels, as well as stringent environmental regulations and government mandates for blending biofuels into diesel.
  • The U.S. Green Methanol market size was estimated in the chemical feedstock segment to have accounted for the largest share in 2024.

Statistics:

  • The Green Methanol Market is projected to expand at a CAGR of 31.99 percent from 2025 to 2032.
  • The U.S. Green Methanol market size was USD 650 million in 2024.
  • The global market is expected to reach USD 5989 million by 2032.
  • Biomass accounted for about 56 percent of the market revenue in 2024.
  • The biodiesel segment held the largest market share, around 22 percent, in 2024.

Sources:

  • SNS Insider: https://www.snsinsider.com/enquiry/7706
  • Inflation Reduction Act (IRA) tax credit: https://www.investopedia.com/iracredit/
  • A.P. Moller Maersk: https://maersk.com/
  • Liquid Wind AB: https://liquidwind.com/
  • Carbon Recycling International: https://www.carbonrecycling.com/
  • Enerkem Inc.: https://www.enerkem.com/
  • BioMCN: https://www.biocnm.com/
  • BASF SE: https://www.basf.com/
  • Nordic Green: https://nordicgreen.com/
  • Haldor Topsoe: https://www.topsoe.com/
  • Proman: https://www.proman.co.uk/
  • Vertimass: https://www.vertimass.com/

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