Press release
Renewable Methanol Market to Incur High Value Growth at 6.5% CAGR During 2016-2026
Future Market Insights delivers key insights on the global renewable methanol market in its latest report titled “Renewable Methanol Market: Global Industry Analysis and Opportunity Assessment, 2016–2026”. According to the report, global sales of renewable methanol is estimated to be valued at US$ 133.3 Mn by the end of 2016, witnessing a Y-o-Y growth of 5.2% over 2015.Renewable methanol is a second generation biofuel and is derived from renewable sources such as biomass, industrial waste, municipal waste, and industrial CO2. Renewable methanol is used as a transportation fuel after blending it with other chemicals. The main reason for the rise in demand for renewable methanol as a fuel is the implementation of regulations especially in Europe and North America that over 10% of the transport fuel should come from renewable sources by the end of 2020. Renewable methanol that is produced through the gasification process and using biomass is used as a liquid motor fuel as it has a high hydrogen to carbon ratio due to its high octane rating. Moreover, the use of renewable methanol is expected to reduce greenhouse gas emissions by over 15%-20% as compared to other fuels. Another major advantage of renewable methanol is that when produced using industrial waste and municipal waste, it reduces the waste content and converts it to usable energy.
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Environmental pollution from CO2 emissions and import of crude oil for fuel has resulted in the adoption of renewable energy sources. Thus, reduction of agricultural waste and conversion of municipal solid waste into syngas and further into renewable methanol can offer lucrative growth opportunities for key players operating in the global renewable methanol market.
Segmentation highlights
On the basis of primary source, the global renewable methanol market can be segmented into biomass, industrial waste, municipal waste, and others; and on the basis of end-use application into formaldehyde, MTBE, gasoline, dimethyl ether, solvents, and others.
The biomass primary source segment is expected to hold significant share in the global renewable methanol market and is estimated to register the highest CAGR of 7.0% in terms of value over the forecast period. The segment is expected to create incremental opportunity of US$ 53.7 Mn during 2016–2026
The MTBE end-use application segment is anticipated to register the highest CAGR of 8.1% in terms of value between 2016 and 2026. This segment is expected to gain traction over the forecast period due to increasing demand for fuel blends from the automotive industry
Regional market projections
The global renewable methanol market is segmented on the basis of region into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan, Japan, and Middle East & Africa. APEJ is expected to register the highest CAGR in terms of value over the forecast period. Australia and China are highly focussed on using renewable methanol as a fuel blend. The Philippines and Myanmar have also passed various policies mandating the use of fuel blended with renewable methanol by the end of 2020. North America is estimated to account for 26.1% value share of the global renewable methanol market by the end of 2016 and is projected to dominate the global market throughout the forecast period.
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Vendor insights
The report features some of the top companies operating in the global renewable methanol market. Leading market players profiled in the report are BioMCN, Methanex Corporation, Enerkem, Chemrec Inc., Carbon Recycling International, and VarmlandsMetanol. These players have adopted the strategy of signing long-term supply agreements with feedstock suppliers and end-use customers to maintain continuous supply of renewable methanol. Moreover, these companies are also focussing on the transport sector as this sector is expected to offer lucrative opportunities over the forecast period.
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