Green Methanol Market Gains Momentum as India Invests ₹2,300 Crore in a 150-Tonne-Per-Day E-Methanol Plant

India is accelerating its green methanol ambitions with a ₹2,300 crore investment in a port-based e-methanol production facility at Deendayal Port, Kandla, Gujarat, announced on September 26, 2026. Developed jointly by Deendayal Port Authority and Assam Petro-Chemicals Ltd., the plant is designed to produce 150 tonnes of e-methanol daily using renewable power, water, and biogenic carbon dioxide. The project is expected to supply low-carbon marine fuel to vessels operating along the Asia-Europe trade corridor. Its phased development, with completion targeted for 2027, could strengthen domestic production capacity, improve fuel availability, and increase competition among emerging green methanol suppliers.

Producers, renewable energy developers, electrolyzer manufacturers, and carbon-capture technology providers stand to benefit from expanding project pipelines. Companies including European Energy, Goldwind, Shanghai Electric, and OCI Global are positioned to pursue opportunities in renewable methanol production, integrated hydrogen systems, and long-term fuel supply agreements. Growing interest from shipping companies and chemical manufacturers could encourage additional capacity investments, technology partnerships, and commercial offtake contracts. However, producers relying on conventional methanol face increasing pressure as customers seek lower-carbon alternatives and stricter emissions requirements influence procurement decisions.

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According to DataM Intelligence, the global green methanol market was valued at USD 2.87 billion in 2025 and is projected to reach USD 31.31 billion by 2033, expanding at a compound annual growth rate (CAGR) of 34.78% during 2026-2033. Increasing investment in renewable fuel infrastructure and decarbonization across shipping and chemicals supports this growth outlook.

Europe currently leads the market, supported by decarbonization policies, renewable energy investments, and demand for low-carbon marine fuels, while Asia-Pacific is the fastest-growing region as China and India expand production capacity and clean-fuel infrastructure. Biomethanol remains the leading product type, benefiting from established production pathways and available organic waste feedstocks. E-methanol is gaining faster traction as renewable hydrogen, carbon dioxide utilization, and shipping-sector decarbonization drive commercial-scale projects.

United States: Recent Industry Developments

✅ October 2026: Demeter Energy selected Veransa Group as the strategic feedstock supplier for its SeaPort Manatee biomethanol project in Florida. The agreement secures access to up to 325,000 tons of urban wood and green waste annually, supporting planned production of approximately 100,000 metric tons of low-carbon biomethanol per year for shipping and industrial applications.

✅ September 2026: Demeter Energy advanced development of its commercial-scale biomethanol production and carbon-capture facility in Manatee County, Florida. The proposed plant is designed to convert sustainable biomass into approximately 100,000 metric tons of biomethanol annually while capturing and permanently sequestering around 200,000 metric tons of biogenic CO2 per year, integrating renewable fuel production with carbon management.

✅ June 2026: Honeywell advanced its methanol-to-jet (MTJ) technology following ASTM approval of the Honeywell UOP pathway, strengthening the technical basis for converting methanol into sustainable aviation fuel. Its eFiningTM process can upgrade methanol produced from captured CO2 and renewable hydrogen or biomass-derived synthesis gas, broadening low-carbon feedstock options for aviation-fuel producers and supporting commercial-scale deployment.

Japan: Recent Industry Developments

✅ October 2026: JFE Steel, Mitsubishi Gas Chemical (MGC), and Mitsubishi Chemical commenced a carbon-recycling supply-chain demonstration at the Mizushima Industrial Complex. The project integrates steelmaking by-product gases, MGC's CarbopathTM methanol-production technology, and Mitsubishi Chemical's DTP® process to convert methanol into propylene, demonstrating an industrial pathway for carbon reuse and lower-carbon chemical manufacturing.

✅ September 2026: Ebara Environmental Plant, TRE Holdings, and Mitsubishi Gas Chemical initiated commercialization studies for producing green methanol from woody biomass and used plastics at a candidate site in Ichihara, Chiba Prefecture. The proposed resource-circulation model combines waste-derived feedstocks with methanol synthesis to create a potential domestic supply pathway for lower-carbon fuels and chemical raw materials.

✅ July 2026: Mitsubishi Gas Chemical signed a green methanol purchase-and-sale agreement with India's ACME Group, securing planned offtake of approximately 100,000 metric tons annually from a project under development in Odisha, India, once commercial operations are scheduled to begin in 2030. The agreement strengthens Japan's prospective access to imported green methanol for marine fuels and chemical applications, supporting diversification of low-carbon methanol supply.

Key Mergers and Acquisitions

✅ Brookfield agreed to invest up to USD 600 million in ACME Cleantech Ventures, announced on 17 September 2026. The investment is intended to support the development and construction of ACME's green ammonia and green methanol projects in India and Oman. It marks Brookfield's expansion into the region's low-carbon fuels sector through its Global Transition Fund strategy.

✅ ACME Green Molecules (ACME Group) and Mitsubishi Gas Chemical Company, Inc. (MGC) signed a binding green methanol purchase-and-sale agreement on 2 July 2026, announced on 3 July. MGC will purchase approximately 100,000 tonnes per year from ACME's planned production project in Paradip, Odisha, with supplies scheduled to begin when commercial operations commence in 2030. The agreement supports ACME's planned 200,000-tonne-per-year plant and gives MGC access to ultra-low-carbon methanol for marine fuel and chemical applications in Japan and other Asian markets.

Key Players

Ørsted A/S | A.P. Moller - Maersk A/S | Carbon Recycling International (CRI) | Proman AG | Methanex Corporation | OCI N.V. | BASF SE | Liquid Wind AB | WasteFuel | Southern Green Gas

Strategic Profiles: How Market Leaders Are Positioning for 2026

-Ørsted A/S: Advancing green fuel production through renewable energy integration and e-methanol development. The company supports the decarbonization of shipping and industrial sectors by connecting renewable electricity with emerging power-to-X technologies.

-A.P. Moller - Maersk A/S: Accelerating maritime decarbonization through investments in alternative marine fuels and methanol-powered vessels. Its strategy focuses on expanding access to lower-emission fuels and developing supply chain partnerships to support green methanol adoption in global shipping.

-Carbon Recycling International (CRI): Commercializing renewable methanol production through its Emissions-to-Liquids technology, which converts captured carbon dioxide and hydrogen into methanol. Its approach supports the development of lower-carbon fuels for transportation and industrial applications.

-Proman AG: Strengthening its position in methanol production and supply while developing lower-carbon methanol pathways. Its global production capabilities and shipping industry relationships support the adoption of alternative methanol fuels across marine and industrial markets.

-Liquid Wind AB: Developing commercial-scale e-methanol projects that combine renewable electricity, green hydrogen, and captured biogenic carbon dioxide. Its project development model targets lower-emission marine fuels and supports the transition toward more sustainable shipping operations.

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Green Methanol Market Opportunities

-Scaling Sustainable Marine Fuels: Supplying renewable methanol as a lower-carbon alternative to conventional marine fuels to support shipping decarbonization and compliance with evolving emissions regulations.

-Accelerating Renewable Methanol Production: Expanding production through green hydrogen and captured biogenic or direct-air-captured CO2 to meet demand for low-carbon fuels and sustainable chemical feedstocks.

-Decarbonizing Chemical and Industrial Applications: Replacing fossil-based methanol in chemical manufacturing, formaldehyde production, and other industrial processes to help reduce lifecycle emissions and advance low-carbon supply chains.

Regional Insights

-Europe: 40.74% (Leading region in 2025, driven by stringent decarbonization regulations, renewable fuel targets, and investment in commercial-scale green methanol production).

-Asia-Pacific: 31.34% (Supported by expanding chemical industries, renewable energy capacity, and growing demand for low-carbon marine fuels).

-North America: 20.96% (Driven by investments in green hydrogen, carbon capture technologies, and low-emission fuel infrastructure).

-Rest of World: 6.96% (Growing through renewable fuel projects, abundant solar and wind resources, and emerging investments in Latin America and the Middle East).

Market Segmentation Analysis

-By Type: Biomethanol produced from biomass and biogenic waste, and e-methanol synthesized using green hydrogen and captured carbon dioxide.

-By Production Route: Power-to-methanol using renewable electricity, biomethane reforming, biomass gasification, and waste-to-methanol processes that convert suitable waste streams into methanol.

-By Application: Chemical applications, including formaldehyde, acetic acid, and other chemical intermediates, and fuel applications, including marine fuels, transportation fuels, and potential blending or use in low-carbon energy systems.

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