Renewable methanol is a second generation biofuel and is produced using renewable energy and non-food crop resources. Methanol has wide range of applications in sectors such as transportation, power generation, and chemical manufacturing. Global consumption of renewable methanol was pegged at 181.1 thousand tonnes in 2015. Sales revenue of renewable methanol is expected to register a CAGR of 6.5% over the forecast period (2016–2026).
Fossil fuel depletion and high natural gas prices has sparked an interest in renewable feedstock
Exploitation of natural resources for fuel has led to high greenhouse gas emissions and high prices of crude oil. This in turn has increased the consumption of methanol. However, if renewable sources (such as biomass, industrial & municipal waste, and industrial CO2) are used to produce methanol, CO2 emissions are known to decrease by about 60%-80%. In addition, government regulations in countries such as U.S. and China to use over 10% of renewable fuels in motor fuels by the end of 2020 are expected to drive the demand for second-generation biofuels such as renewable methanol over the forecast period. Wide availability of feedstock for renewable methanol generation and subsidies on gasifier systems are other factors expected to boost the growth of the global renewable methanol market over the forecast period.
However, the supply of agricultural feedstock for biogas generation and bioethanol production is expected to challenge the growth of renewable methanol production and consumption over the forecast period.
By Primary Source
By End-use Application
MTBE and Dimethyl Ether end-use application segments expected to gain traction over the forecast period
Dimethyl Ether produced from renewable methanol is an attractive alternative for diesel due to its high cetane number and low exhaust gas emissions. Consumption of dimethyl ether from renewable sources is also anticipated to increase in new fuel injection systems. This also reduces emissions of sulphur oxides and nitrogen oxides. As renewable methanol can be directly blended into petrol with ethanol and can be used to produce MTBE, this segment is expected to register the highest CAGR over the forecast period. The Dimethyl Ether, MTBE, and Solvents segments are expected to witness significant CAGRs in terms of volume and value over the forecast period. The Formaldehyde segment is estimated to be valued at US$ 41.1 Mn by the end of 2016 and is expected to register a CAGR of 5.2% over the forecast period.
Biomass primary source segment anticipated to expand at a significant rate over the forecast period
The Biomass segment is anticipated to account for a value share of 41.8% of the global renewable methanol market by the end of 2016, as biomass is expected to prove as a good option for the production of biofuels such as renewable methanol. Many developed countries meet their biofuel needs and improve their energy security by adopting technologies for alternatives to reduce CO2 emissions. Domestic bio-waste being the best option, the Municipal Waste segment is expected to gain adequate market share over the forecast period and register a significant CAGR of 6.7% in terms of value over the forecast period.
APEJ set to register the highest CAGR during 2016–2026
The APEJ region is estimated to register the highest CAGR of 7.7% in terms of value over the forecast period. Increasing demand for fuel and energy against the backdrop of an increasing population is expected to lead to the adoption of renewable energy generation sources and processes. This is expected to increase the demand for renewable methanol in the APEJ region. The renewable methanol market in North America and Western Europe is estimated to be relatively mature over the forecast period. CO2 emissions in the Middle East have almost doubled today as compared to the last thirty years. However, awareness about the dangers of climate change has forced the region to bring down its CO2 emissions. This in turn is expected to positively impact the growth of the renewable methanol market in MEA.
Long-terms supply agreements is the main strategy adopted by key players in the North America and Europe renewable methanol market
The major players operating the global renewable methanol market are BioMCN, Methanex Corporation, Enerkem, Chemrec Inc., Carbon Recycling International, and VarmlandsMetanol. Top market companies are strategically focussing on partnering with long-term contract feedstock suppliers and end-use customers in order to maintain their market share in the global renewable methanol market.
Future Market Insights offers a 10-year forecast for the renewable methanol market between 2016 and 2026 in a new report titled “Renewable Methanol Market: Global Industry Analysis and Opportunity Assessment 2016–2026”. Our foremost objective in preparing this report is to present insights on various advancements in the global renewable methanol market. This report provides updates on drivers, restraints, opportunities, and regional trends expected to influence the current environment and future status of the global renewable methanol market over the forecast period (2016 – 2026).
The report starts with an overview of the global renewable methanol market. The section that follows presents key market dynamics including market drivers, restraints, opportunities, regional trends, and regulations such as low carbon fuel standard and renewable fuel standard in applicable regions. We have also presented an overview of the existing and planned facilities for renewable methanol and related investment costs. For ease of understanding, we have split the report into three sections based on market segmentation – by primary source, by end-use application, and by region. The next few sections provide detailed market share analysis, Y-o-Y growth, and market attractiveness analysis on the basis of primary source, end-use application, and region; and present a comprehensive market outlook for the next 10 years, setting the forecast within the context of the global renewable methanol market, including new technological developments as well as product offerings for various applications.
In the final section of the report, we have added a competitive landscape to provide report audiences with a dashboard view of key players operating in the global renewable methanol market. Detailed profiles of manufacturers of renewable methanol are included within the scope of the report to evaluate their long-term and short-term strategies, key offerings, and recent developments in the global renewable methanol market.
We have acquired critical data pertaining to the performance of the global renewable methanol market across key segments and regions by conducting in-depth secondary research and after interviewing key stakeholders in the global renewable methanol market. The forecast presented in our report assesses the global renewable methanol market in terms of market value and volume, and in order to provide an accurate forecast, we have begun by sizing up the current market, which forms the basis of how the global renewable methanol market is expected to develop in the future. Given the characteristics of the market, we have triangulated the outcome on the basis of different types of analysis based on supply side and demand side drivers and other aspects of the global renewable methanol market. Given the ever-fluctuating nature of the global economy, we have not only conducted the forecasts in terms of CAGR, but have also analysed the market on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities for key market players operating in the global renewable methanol market.
We have also analysed the different segments of the global renewable methanol market in terms of basis point share (BPS) to understand individual segments’ relative contribution to market growth. This detailed level of information is important for identifying the various key trends governing the global renewable methanol market. Another key feature of our report is the analysis of all key segments in terms of absolute dollar. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the global renewable methanol market. The overall absolute dollar opportunity along with the segmental split is mentioned in the report. Further, to understand key market segments in terms of growth and performance, we have developed the global renewable methanol market attractiveness index to help providers identify real market opportunities in the global renewable methanol market.