Key Points
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Research suggests the e-methanol market size in 2025 is around USD 2.59 billion, though estimates vary.
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It seems likely that e-methanol, a subset of green methanol, is included in broader market reports, with some figures as low as USD 1.62 billion.
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The evidence leans toward growth, driven by renewable energy and decarbonization, but exact figures for e-methanol alone are unclear due to overlapping definitions.
Market Size Overview
The e-methanol market, which involves methanol produced using renewable electricity, is estimated at USD 2.59 billion in 2025, based on a report from MarketsandMarkets Green Methanol Market Report. This figure reflects the broader green methanol market, which includes e-methanol and bio-methanol, due to interchangeable usage in industry reports.
Factors Influencing Size
E-methanol’s market size is influenced by growing demand for sustainable fuels, especially in maritime and chemical sectors, and government policies promoting renewables. However, discrepancies in reports, such as a lower estimate of USD 1.62 billion from Roots Analysis, highlight uncertainty in segment definitions.
Current Trends and Projections
Research suggests the market is expected to grow significantly, with projections reaching USD 11.18 billion by 2030 at a CAGR of 34.0%, indicating strong future potential. The overlap between e-methanol and green methanol complicates precise sizing, but the trend toward decarbonization supports expansion.
Comprehensive Analysis of the E-Methanol Market Size in 2025
The e-methanol market, a segment of the broader renewable methanol industry, refers to methanol produced using renewable electricity, typically through the electrolysis of water to generate hydrogen, which is then combined with carbon dioxide to create methanol. This process positions e-methanol as a low-carbon or zero-emission fuel, aligning with global decarbonization efforts. Given the current date of May 14, 2025, this analysis synthesizes recent data and projections to estimate the market size for 2025, drawing from market research reports, industry analyses, and relevant insights.
Market Size Estimates and Discrepancies
Research suggests that the e-methanol market size in 2025 is approximately USD 2.59 billion, based on a report from MarketsandMarkets Green Methanol Market Report, published in March 2025. This figure is part of the global green methanol market, projected to grow from USD 2.59 billion in 2025 to USD 11.18 billion by 2030, registering a compound annual growth rate (CAGR) of 34.0%. The report attributes this growth to stringent environmental regulations, the push for sustainability goals, and increasing demand for clean fuels in transportation and industrial applications.
However, there is a discrepancy with another source, Roots Analysis, which projects the green methanol market size at USD 1.62 billion in 2025, growing to USD 23.94 billion by 2035 at a CAGR of 30.88% Green Methanol Market Report. This lower estimate, published in April 2025, suggests potential differences in methodology, data sources, or market definitions. Both reports likely include e-methanol within the broader green methanol category, which also encompasses bio-methanol (produced from biomass), complicating precise segmentation.
Definition and Scope
E-methanol specifically refers to methanol produced from renewable electricity, often through power-to-methanol routes, where hydrogen is generated via electrolysis and combined with captured carbon dioxide. Green methanol, as defined in these reports, includes both e-methanol and bio-methanol, making it challenging to isolate the e-methanol market size. For instance, MarketsandMarkets segments the market by feedstock, including biomass, green hydrogen (for e-methanol), and carbon capture and storage (CCS), but does not provide separate revenue figures for each segment in the available snippets.
The Methanol Institute, in a January 2025 update, provides insight into production capacity, tracking 220 renewable methanol projects globally as of April 2025, with a total anticipated capacity of 37.1 Mt by 2030, of which e-methanol projects account for 20.6 Mt and biomethanol for 16.5 Mt Renewable Methanol | Methanol Institute. While this data is for future capacity, it underscores e-methanol’s significant role within the renewable methanol market, potentially supporting the higher market size estimate from MarketsandMarkets.
Drivers and Trends
The growth of the e-methanol market is closely tied to global decarbonization efforts, particularly in the maritime industry, where e-methanol is seen as a clean and sustainable fuel source. For example, major shipping companies like Maersk have entered strategic partnerships to increase green methanol production capacity, aiming to source at least 730,000 tons/year by the end of 2025 Global Renewable Methanol Market Report. This aligns with the transportation/mobility segment being the largest end-use industry, expected to dominate during the forecast period, as noted in a May 2025 report from BIS Research Green Methanol Market Report.
Stringent environmental regulations, government incentives for renewable energy, and increasing consumer awareness for eco-friendly products are key drivers, particularly in North America, which is expected to have the highest CAGR growth during the forecast period Green Methanol Market Report. Technological advancements, such as carbon capture and utilization, further boost adoption, with collaborations like Mitsubishi Gas Chemical and Element 1 Corp. signing a Memorandum of Understanding in February 2025 to develop methanol-to-hydrogen solutions Green Methanol Market Report.
Challenges and Uncertainties
The primary challenge in estimating the e-methanol market size is the overlap with green methanol, as reports often aggregate both e-methanol and bio-methanol. The discrepancy between USD 2.59 billion (MarketsandMarkets) and USD 1.62 billion (Roots Analysis) may stem from different assumptions, such as market scope, regional focus, or inclusion of emerging projects. For instance, Roots Analysis might focus on current operational capacity, while MarketsandMarkets could include projected capacities, given their higher growth projections.
Additionally, the lack of academic or government reports specifically isolating e-methanol market size, as seen in searches for academic sources, limits precision. Production cost analyses, such as a 2024 study from ScienceDirect, provide techno-economic assessments but focus on costs rather than market value, with green methanol prices ranging from 707–1107 €/t, which does not directly translate to market size Techno-economic assessment of a power-to-green methanol plant.
Regional Dynamics
East Asia, particularly China, is set to generate a significant share in 2025, driven by innovations in methanol-to-olefins technology, as noted in a Persistence Market Research report Methanol Market Report. North America benefits from strict environmental regulations and investments in renewable energy, contributing to market expansion. These regional dynamics support the higher market size estimate, given Asia Pacific’s dominance in methanol markets generally.
Conclusion
Research suggests the e-methanol market size in 2025 is approximately USD 2.59 billion, based on the MarketsandMarkets report, which is considered more reliable due to the firm’s established reputation and alignment with industry trends. However, the evidence leans toward acknowledging the complexity, with a lower estimate of USD 1.62 billion from Roots Analysis, highlighting potential variations in market definitions. It seems likely that e-methanol, as a subset of green methanol, is driving growth, supported by renewable energy adoption and decarbonization policies, with projections indicating significant expansion by 2030. The overlap between e-methanol and green methanol complicates precise sizing, but the total market size of USD 2.59 billion is a reasonable estimate for 2025, given current data.
The following table summarizes key market size estimates and projections:
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Source
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Market Size 2025 (USD Billion)
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Projection by Year
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MarketsandMarkets
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11.18 by 2030
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34.0% (2025-2030)
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Roots Analysis
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23.94 by 2035
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30.88% (2025-2035)
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Key Citations
The world’s first commercial-scale e-methanol plant began operations in Denmark yesterday, with Maersk set to buy part of the production.
The Kassø e-methanol facility in Aabenraa, Denmark, developed by European Energy and operated in collaboration with Mitsui & Co, has an annual production capacity of 42,000 tonnes and operates entirely on renewable energy sources.
Situated next to Northern Europe’s largest solar park—the 304 MW Kassø Solar Park—the facility integrates large-scale renewable power generation with carbon capture and utilisation.
Rabab Raafat Boulos, chief operating officer at A.P. Moller – Maersk, said: “We are excited to receive the first e-methanol from the Kassø facility, marking an important milestone in our global efforts to source alternative fuels for our vessel fleet. The future of shipping must include multiple fuel types operating alongside each other, with methanol playing a key role in the industry’s net-zero ambitions.”
The Laura Maersk, the Danish’s owner’s first methanol dual-fuelled ship, is taking fuel from the new plant this week.
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