Press Release

Europe Green Methanol Market to Grow with a CAGR of 13.47 % through 2028

Increasing demand for green fuel and chemicals are the major driver of the Europe Green Methanol Market in the forecast period 2024-2028

 

According to TechSci Research report, “Europe Green Methanol Market - By Region, Competition, Forecast and Opportunities, 2018-2028”, Europe Green Methanol Market Size is USD 71.76 million in 2022 and is anticipated to increase at a CAGR of 13.47% through 2028. Green methanol, often referred to as renewable methanol, emerges as an environmentally responsible and sustainable solution in the realm of alternative fuels and chemical feedstocks. Distinguished from its conventional counterpart, green methanol derives from renewable and eco-friendly feedstock sources, notably biomass and carbon dioxide. This eco-conscious approach to methanol production resonates with the worldwide commitment to diminish greenhouse gas emissions and transition toward a more sustainable energy landscape. A primary advantage of green methanol lies in its minimal carbon footprint. Traditional methanol production methods, often tethered to fossil fuels, significantly contribute to carbon emissions. In contrast, green methanol production harnesses sustainable resources and leverages clean energy sources, thereby mitigating its environmental impact. This low-carbon attribute positions green methanol as a pivotal player in the ongoing combat against climate change and air pollution. Moreover, green methanol exhibits remarkable versatility across a range of applications, rendering it a valuable asset in various industries. Serving as a renewable fuel, it finds application in the transportation sector as a clean-burning alternative to conventional gasoline or diesel. Numerous nations are actively exploring green methanol to decarbonize their transportation sectors, curbing vehicle emissions and fostering enhanced air quality. Beyond transportation, green methanol plays a vital role in chemical feedstocks, enabling the creation of eco-friendly and sustainable products while reducing reliance on fossil fuel-derived chemicals and their associated environmental repercussions.

Additionally, green methanol holds vast potential as a renewable energy storage solution. It adeptly stores surplus energy generated by intermittent renewable sources such as wind and solar power, allowing for the efficient conversion of stored energy back into electricity or heat when required. This addresses the challenges of energy intermittency, guaranteeing a stable energy supply. The global demand for green methanol is steadily rising, propelled by several key drivers. Primarily, the growing recognition of environmental issues and the imperative for sustainable energy sources have ignited interest in green methanol as a clean fuel and feedstock. Both governments and industries are increasingly acknowledging its capacity to curtail carbon emissions and endorse a circular economy.

 

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Moreover, the proliferation of renewable energy sources like wind and solar power has amplified the demand for effective energy storage solutions. Green methanol's aptitude for storing surplus renewable energy elevates its importance in the shift towards more sustainable and dependable energy systems. Beyond its environmental merits, green methanol also yields economic advantages. Its production potential encompasses job creation within the renewable energy sector and diminishes the dependence on imported fossil fuels. This economic stimulus has piqued the interest of policymakers seeking to invigorate employment opportunities and fortify energy security.

The Europe Green Methanol Market is segmented into feedstock, type, application, country distribution, and company.

Based on the feedstock, the CO2 emission segment is expected to register the highest growth of 13.80% during the forecast period 2024-2028. The utilization of carbon dioxide (CO2) emissions as a primary resource in the production of green methanol represents a groundbreaking approach to addressing climate change and transitioning towards sustainable energy solutions. This innovative method, often referred to as carbon capture and utilization (CCU), involves capturing carbon dioxide emissions originating from industrial sources, such as power plants and factories. These emissions are then converted into valuable green methanol through a chemical transformation process, typically using renewable hydrogen. The methanol produced in this manner serves as a clean-burning fuel and versatile chemical feedstock. This approach not only helps mitigate the release of harmful CO2 emissions into the atmosphere but also transforms them into a valuable product capable of replacing fossil fuels in various applications. Green methanol, derived from CO2 emissions feedstock, can function as a renewable fuel for transportation, an efficient energy carrier, a raw material for chemical production, and a means to store surplus renewable energy. By closing the carbon loop and converting emissions into a valuable resource, this process exemplifies the immense potential of innovative solutions in the battle against climate change and the establishment of a more sustainable and circular economy.

Based on the type, the e-methanol segment is expected to register the highest growth of 17.04% during the forecast period 2024-2028. E-methanol, also known as electro-methanol, is steadily gaining recognition as an eco-friendly and sustainable fuel source and chemical feedstock. Its production process often involves harnessing renewable energy sources like wind or solar power to power electrochemical reactors responsible for converting carbon dioxide into methanol. This approach not only mitigates greenhouse gas emissions but also contributes to the recycling of carbon dioxide, aligning with carbon neutrality objectives. E-methanol is known for its versatility and can serve as a clean-burning fuel in various applications, including transportation and electricity generation. Its high energy density and compatibility with existing infrastructure make it a practical substitute for conventional fossil fuels. Additionally, E-methanol serves as a valuable chemical feedstock, facilitating the production of a wide range of products, from plastics to pharmaceuticals, reducing reliance on traditional petrochemical sources.

Furthermore, E-methanol exhibits non-toxic properties and readily biodegrades, minimizing environmental concerns associated with its use. It seamlessly aligns with the global transition towards sustainable energy and chemical processes, offering a greener pathway to meet energy requirements while reducing carbon footprints. As the world intensifies its efforts to combat climate change and transition towards cleaner energy sources and chemical manufacturing, E-methanol emerges as a promising solution that effectively combines environmental advantages with versatility and efficiency.

Based on the application, the fuel grade segment is expected to register the highest growth of 13.24% during the forecast period, 2024-2028. The demand for fuel-grade green methanol is experiencing a significant surge as the world transitions towards more environmentally friendly and sustainable energy solutions. Green methanol, derived from renewable sources such as biomass, carbon capture and utilization (CCU), or green hydrogen, is gaining prominence as a low-carbon fuel with versatile applications. It is increasingly being embraced as an alternative transportation fuel, suitable for use in both internal combustion engines and fuel cells. The high energy density of green methanol and its compatibility with existing infrastructure make it an attractive choice for reducing emissions in the transportation sector.

Furthermore, green methanol plays a pivotal role in the emerging hydrogen economy. It can be readily converted into hydrogen, a critical element in the shift towards clean energy. Its efficient and safe storage and transportation capabilities address a significant challenge in the hydrogen energy landscape, making it an ideal medium for hydrogen storage and distribution. The push for decarbonization and the implementation of stringent environmental regulations are compelling industries to explore cleaner fuel alternatives, and green methanol is increasingly recognized as a viable solution. Its potential to reduce greenhouse gas emissions and promote sustainable energy practices aligns perfectly with global sustainability objectives, establishing it as a highly sought-after fuel grade in the ever-evolving landscape of clean energy alternatives.

Based on country, Germany will witness fastest growth during the forecast period, 2024-2028. The demand for green methanol in Germany is experiencing a significant upswing as the country endeavours to meet ambitious sustainability and decarbonization targets. Germany, known for its strong commitment to environmental responsibility, is increasingly embracing green methanol as a vital component of its clean energy transition. Green methanol, produced from renewable sources like biomass, carbon capture, and green hydrogen, aligns seamlessly with Germany's drive to reduce carbon emissions and embrace eco-friendly energy solutions. One of the primary drivers of this demand surge is the transportation sector's growing interest in green methanol as an alternative fuel. It offers a practical means to lower emissions in the automotive industry, particularly for internal combustion engines and fuel cells, thereby contributing to cleaner air and reduced environmental impact. Additionally, Germany's robust chemical industry recognizes the potential of green methanol as a sustainable feedstock, fostering innovation and sustainable practices. The nation's commitment to fostering green energy technologies, coupled with favourable government incentives and policies, is propelling the adoption of green methanol across various sectors. As Germany continues to lead the way in renewable energy adoption, the demand for green methanol is expected to remain on a steadfast upward trajectory.

 

Major companies operating in Europe Green Methanol Market are:

  • OCI N.V.
  • Carbon Recycling International
  • Sodra Skogsagarna
  • BASF SE
  • Thyssenkrupp AG
  • Nordic Green ApS

 

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“The production of green methanol is closely intertwined with the progress of carbon capture and utilization (CCU) technologies. The process of capturing carbon dioxide (CO2) emissions from industrial operations and converting them into methanol is gaining significant traction as a viable approach to reducing carbon footprints. This emerging trend aligns with global initiatives focused on developing effective CCU solutions to mitigate the environmental impacts associated with CO2 emissions. Additionally, in the context of the growing hydrogen economy, green methanol plays a crucial role. It serves as a key carrier for hydrogen, effectively addressing various challenges related to the transportation and storage of hydrogen. Hydrogen itself is considered essential for achieving clean energy goals, and green methanol plays a pivotal role in simplifying its efficient distribution and utilization creates a lucrative opportunity in the market growth,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Europe Green Methanol Market, By Feedstock (CO2 Emissions, Municipal Solid Waste, Agricultural Waste, Forestry Residues, Others), By Type (E-Methanol, Bio Methanol), By Application (Fuel Grade, Chemical Feedstock, Others), By Country, By Competition Forecast & Opportunities, 2018-2028F”, has evaluated the future growth potential of Europe Green Methanol Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Europe Green Methanol Market.


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