Bio-Methanol Market (2026-2036)
The global Bio-Methanol Market was valued at USD 113.9 million in 2025. This market is expected to reach USD 2.44 billion by 2036 from an estimated USD 214.5 million in 2026, registering a CAGR of 27.5% during the forecast period (2026-2036). In terms of volume, the market is expected to grow from an estimated 233 kilotonnes in 2026 to 3,000 kilotonnes by 2036, at a CAGR of 29.1% during the same period.
- Published
- Oct 2026
- Pages
- 383
- Format
- PDF + Excel
- Report ID
- MR-2320
- Base year
- 2025
- 2025 · BASELINE
- $113.9M
- 2036
- $2.44B
- CAGR 2026–2036
- 27.5%
2025 baseline · 2026–2036 forecast at 27.5% CAGR · hover a bar for the value
Key highlights
The global Bio-Methanol Market is projected to reach USD 2.44 billion by 2036, driven by maritime decarbonization regulations, growing methanol-fueled fleets, policy support in China, and rising demand for bio-attributed chemicals.
Asia-Pacific is expected to account for the largest market share in 2026 and is also projected to register the fastest growth during the forecast period. According to the National Energy Administration of China, six green methanol projects with a combined capacity of about 380 thousand tonnes per year had been built in China by the end of 2025.
By feedstock, Agricultural & Forestry Residues are expected to account for the largest market share, supported by straw and forestry residue gasification projects in China.
By application, Chemical Feedstock is expected to account for the largest market share in 2026, whereas Marine Fuel is projected to witness the fastest growth through 2036.
Green methanol bunkering is scaling up at major ports. Around 12 thousand tonnes of bio-methanol were sold as bunker fuel in Rotterdam in 2025, almost three times the 2024 volume, while Shanghai supplied around 10 thousand tonnes and Singapore around 3 thousand tonnes of green methanol to ships during the year.
Bio-methanol is sold at a large premium over fossil methanol. Bio-methanol from China was offered at about USD 820 per tonne in 2025, compared with Methanex posted contract prices of USD 340 to 400 per tonne for conventional methanol in China during the year.
New capacity is coming online rapidly. CIMC Enric started production at its 50 thousand tonnes per year biomass methanol plant in Zhanjiang in December 2025, and a 100 thousand tonnes per year food-waste biogas methanol plant in Shanghai Jinshan began commercial operation in the same month.
Report summary
| Particulars | Details |
|---|---|
| Forecast Period | 2026-2036 |
| Base Year | 2025 |
| Estimated Year | 2026 |
| CAGR (Value) | 27.5% |
| Format | PDF, Excel & Cloud Portal · 383 pages |
| CAGR (Volume) | 29.1% |
| Market Size (Value) in 2026 | USD 214.5 Million |
| Market Size (Value) in 2036 | USD 2.44 Billion |
| Market Size (Volume) in 2026 | 233 Kilotonnes |
| Market Size (Volume) in 2036 | 3,000 Kilotonnes |
| Segments Covered | By Feedstock: Agricultural & Forestry Residues, Biogas & Biomethane (Landfill Gas, Food Waste, Animal Manure, Other Organic Waste), Other Biogenic Feedstocks (Algae, Glycerol). By Production Process: Biomass Gasification & Synthesis, Biogas & Biomethane Reforming, Pulp-Mill Crude Methanol Recovery, Other Processes. By Application: Marine Fuel, Chemical Feedstock (Formaldehyde, Methanol-to-Olefins, Acetic Acid, Other Chemicals), Road Transport Fuel (Gasoline Blending, Biodiesel Production, MTBE), Other Applications. |
| Countries Covered | North America: U.S., Canada. Europe: Netherlands, Germany, Sweden, Finland, Denmark, Belgium, Rest of Europe. Asia-Pacific: China, Singapore, Japan, South Korea, India, Australia, Rest of Asia-Pacific. Latin America: Brazil, Rest of Latin America. Middle East & Africa: UAE, Rest of Middle East & Africa. |
| Key Companies | Methanex Corporation, The Hong Kong and China Gas Company Limited, Shanghai Electric Group Company Limited, China International Marine Containers (Group) Co., Ltd., Goldwind Science & Technology Co., Ltd., Södra Skogsägarna ekonomisk förening, and Veolia Environnement S.A.. |
Report overview
Segments covered: feedstock, production process, application.
The growth of this market is mainly driven by maritime decarbonization regulations in the European Union, the growing fleet of methanol dual-fuel vessels and related offtake agreements by shipping lines, and strong policy support for green methanol production in China. In addition, the growing demand for bio-attributed chemicals under mass-balance certification and the commissioning of new biomass gasification and biogas reforming plants are further supporting the growth of this market.
The Bio-Methanol Market comprises methanol produced from biogenic feedstocks and sold to third parties. The market includes methanol produced through gasification of agricultural and forestry residues, methanol produced by reforming biogas, landfill gas, and biomethane (including biomethane supplied under mass-balance and book-and-claim systems), and crude methanol recovered and purified from kraft pulp mills. E-methanol produced from electrolytic hydrogen and captured carbon dioxide, the electrolytic-hydrogen-boosted share of hybrid plants, methanol produced from fossil-carbon waste such as mixed municipal solid waste, plastics, and scrap tyres, and captive consumption are excluded from the scope. The market ecosystem extends from feedstock suppliers and biogas producers to technology providers, methanol producers, traders and bunker suppliers, shipping lines, chemical manufacturers, and fuel blenders.
The market is at an early commercial stage but is growing rapidly from a small base. Global bio-methanol sales were estimated at about 115 thousand tonnes in 2025, a small fraction of the global methanol market, which is dominated by methanol produced from natural gas and coal. According to industry estimates, global commissioned green methanol capacity, including both bio-methanol and e-methanol, was still under 500 thousand tonnes per year in September 2025. However, the pipeline of new plants is large. According to IEA Bioenergy Task 33, China alone had 173 green methanol projects at various stages of development in 2026. Thus, the market is expected to grow at a much faster rate than conventional methanol through 2036.
Shipping has become the main source of long-term demand. FuelEU Maritime, which took effect in January 2025, requires a 2% reduction in the greenhouse gas intensity of energy used on board ships calling at EU ports, rising to 6% in 2030, 14.5% in 2035, and 80% in 2050, while the EU Emissions Trading System covers 100% of in-scope shipping emissions from 2026. Shipping lines such as A.P. Moller - Maersk have ordered methanol dual-fuel container ships and signed long-term offtake agreements with Chinese producers. Thus, maritime regulation is shifting bio-methanol from a niche chemical product into a marine fuel market.
China leads global production. Producers such as The Hong Kong and China Gas Company Limited (through its Ordos plant in Inner Mongolia), Shanghai Electric Group (Taonan, Jilin), and CIMC Enric (Zhanjiang, Guangdong) are producing ISCC-certified bio-methanol from agricultural and forestry residues, and Chinese ports supplied more than 10 thousand tonnes of green methanol as bunker fuel in 2025, according to the National Energy Administration of China. In Europe and North America, supply is led by Methanex, which acquired the methanol business of OCI Global, including its bio-methanol capacity of up to 220 thousand tonnes per year, in June 2025, and by pulp-mill producers such as Södra in Sweden.
At the same time, the market is constrained by high production costs, feedstock collection logistics, and the low utilization of first-of-a-kind plants. According to IEA Bioenergy Task 33, production costs of green methanol in China range from RMB 3,500 to RMB 8,000 per tonne depending on the route, well above the cost of coal- and gas-based methanol. Thus, the forecast assumes continued regulatory support for low-carbon marine fuels, steady ramp-up of plants commissioned in 2025 and 2026, and a gradual decline in production costs as plants scale up.
Pricing in the market is set by long-term offtake agreements and regional premiums over fossil methanol. Bio-methanol from China was offered at about USD 820 per tonne in 2025, compared with Methanex posted contract prices of USD 340 to 400 per tonne for conventional methanol in China, EUR 530 to 700 per tonne in Europe, and USD 778 to 891 per tonne in North America during the year. Thus, the value of the market is driven by both volume growth and the premium that buyers are willing to pay for certified low-carbon methanol.
The supply base is small and concentrated. In 2025, mass-balance bio-methanol from Methanex, the Ordos plant of The Hong Kong and China Gas Company Limited, and the Taonan plant of Shanghai Electric accounted for most of the volume sold, while pulp-mill producers such as Södra supplied smaller volumes. Plants commissioned in December 2025 and during 2026 are expected to double the market volume in 2026. Thus, competitive positions are expected to change rapidly as new capacity starts up.
Market dynamics
13 factors across 5 forcesMaritime Decarbonization Regulations in Europe
Maritime decarbonization regulations are the most important factor driving the Bio-Methanol Market. FuelEU Maritime requires ships above 5,000 gross tonnage calling at EU ports to reduce the greenhouse gas intensity of the energy they use by 2% from 2025, 6% from 2030, 14.5% from 2035, and 80% from 2050, while the EU Emissions Trading System requires shipping companies to surrender allowances for 70% of verified emissions for 2025 and 100% from 2026. Bio-methanol produced from waste and residue feedstocks can reduce life-cycle emissions significantly compared with heavy fuel oil and counts toward both obligations.
As a result, bio-methanol bunker sales in Rotterdam reached around 12 thousand tonnes in 2025, almost three times the 2024 volume. Thus, European regulation provides a growing and predictable demand base for bio-methanol as a marine fuel.
Growing Fleet of Methanol Dual-Fuel Vessels and Offtake Agreements
Shipping lines are adding methanol dual-fuel container ships, car carriers, and tankers to their fleets and are signing long-term offtake agreements to secure green methanol supply. A.P. Moller - Maersk consumed 1,524 GWh of renewable fuels in 2025 and has signed offtake agreements with producers in China, including Goldwind, while green methanol bunkering has become available in Shanghai, Singapore, Rotterdam, and other major ports. Each methanol-capable vessel creates long-term demand for green methanol over its operating life.
Thus, the expanding methanol-fueled fleet is expected to make marine fuel the largest application of bio-methanol by the end of the forecast period.
Policy Support for Green Methanol Production in China
China is supporting green methanol production as part of its strategy for green fuels, rural biomass use, and the decarbonization of shipping. According to the National Energy Administration of China, six green methanol projects with a combined capacity of about 380 thousand tonnes per year had been built by the end of 2025, and IEA Bioenergy Task 33 identified 173 green methanol projects in the country in 2026. Large agricultural residue resources, low-cost renewable power, and domestic shipbuilding and bunkering capacity give China a strong cost and scale position. Thus, China is expected to account for most new bio-methanol capacity during the forecast period.
The growth of methanol-fueled fleets is also supported by the long operating life of vessels. A dual-fuel container ship ordered today is expected to operate into the 2050s, creating long-term demand for green methanol as FuelEU Maritime targets tighten from 6% in 2030 to 80% in 2050. Thus, each methanol-capable vessel delivered during the forecast period adds to the long-term demand base for bio-methanol.
Table of contents
11 chapters · 135 sections · 383 pages · click to expandSegmental analysis
| Segment | Largest share (2026) | Fastest growth (2026–2036) |
|---|---|---|
| By Feedstock | Agricultural & Forestry Residues | — |
| By Production Process | Biomass Gasification & Synthesis | — |
| By Application | Chemical Feedstock | Marine Fuel |
By Feedstock
- The Agricultural & Forestry Residues segment is expected to account for the largest share of the global Bio-Methanol Market.
- The large share of this segment is mainly due to the concentration of operating capacity in China, where plants operated by The Hong Kong and China Gas Company Limited, Shanghai Electric Group, and CIMC Enric produce methanol from straw and forestry residues, and to the inclusion of crude methanol recovered from kraft pulp mills.
- This segment is also projected to register the highest CAGR during the forecast period, driven by the large pipeline of biomass gasification projects in China.
- The Biogas & Biomethane segment is expected to account for the second-largest share of the market in 2026.
- Mass-balance bio-methanol produced from renewable natural gas in North America and Europe, and the start of the 100 thousand tonnes per year food-waste biogas methanol plant in Shanghai Jinshan in December 2025, support this segment.
- According to IEA Bioenergy Task 33, biogas reforming is also the lowest-cost route to green methanol in China, at RMB 3,500 to 4,000 per tonne.
- Thus, this segment is expected to grow steadily as more biogas and landfill gas is upgraded to methanol.
By Production Process
- Biomass Gasification & Synthesis is expected to account for the largest market share, supported by new plants in China and hybrid designs that combine gasification with renewable hydrogen.
- Biogas & Biomethane Reforming is expected to account for the second-largest share, supported by mass-balance production in North America and Europe and the start-up of the Shanghai Jinshan food-waste biogas methanol plant.
- The Pulp-Mill Crude Methanol Recovery segment is expected to account for a small but stable share of the market.
- Kraft pulp mills produce crude methanol as a by-product that is usually burned for energy, but it can be purified and sold.
- Södra produces 5, 250 tonnes of purified biomethanol annually in Sweden, and Veolia has developed a 12 thousand tonnes per year unit in Finland.
- Thus, this segment offers low-cost supply, but its growth is limited by the number of pulp mills and the volume of crude methanol available at each site.
By Application
- Chemical Feedstock is expected to account for the largest market share, as bio-methanol is used to produce bio-attributed derivatives for customers with product carbon footprint targets.
- However, Marine Fuel is projected to register the highest CAGR during the forecast period, driven by FuelEU Maritime, the EU Emissions Trading System, and the growing fleet of methanol dual-fuel vessels.
- The Road Transport Fuel segment is expected to account for a smaller share of the market.
- Bio-methanol is used in gasoline blending, in the production of biodiesel through transesterification, and in the production of MTBE, where it helps fuel suppliers meet renewable fuel targets under the EU Renewable Energy Directive.
- Thus, this segment provides additional demand in Europe, although its growth is expected to be slower than that of marine fuel.
- Within the Marine Fuel segment, container shipping lines are the largest buyers, followed by car carriers, tankers, and bulk carriers.
- A.P.
- Moller - Maersk consumed 1, 524 GWh of renewable fuels in 2025 and has signed offtake agreements with producers in China.
- Thus, a small number of large shipping lines are expected to account for most marine demand in the early years of the forecast period.
Geographic analysis
Asia-Pacific
Largest shareIn 2026, Asia-Pacific is expected to account for the largest share of the global Bio-Methanol Market. The dominance of the region is supported by operating and newly commissioned plants in China, policy support for green fuels, large agricultural residue resources, and the growth of green methanol bunkering in Shanghai and Singapore. According to the National Energy Administration of China, six green methanol projects with a combined capacity of about 380 thousand tonnes per year had been built in China by the end of 2025. Thus, Asia-Pacific is expected to account for more than 60% of global demand in 2026. China is the center of global production. The Hong Kong and China Gas Company Limited operates a 100 thousand tonnes per year plant in Ordos, Inner Mongolia, with an expansion to 150 thousand tonnes per year, and has delivered cargoes to Singapore and to HMM at Shanghai. Shanghai Electric Group has produced methanol from straw gasification in Taonan, Jilin, since July 2025, CIMC Enric started its 50 thousand tonnes per year Zhanjiang plant in December 2025, a 100 thousand tonnes per year food-waste biogas methanol plant began commercial operation in Shanghai Jinshan in the same month, and Goldwind produced the first batch from its 250 thousand tonnes per year Xing'an League project in September 2026. Thus, China is expected to account for most new capacity during the forecast period. Asia-Pacific is also projected to register the highest CAGR during the forecast period. Shanghai supplied around 10 thousand tonnes of domestic green methanol to ships in 2025, ahead of Singapore at around 3 thousand tonnes, while ports in South Korea and Japan are preparing methanol bunkering services for dual-fuel container ships built by Asian shipyards. In addition, IEA Bioenergy Task 33 identified 173 green methanol projects in China in 2026. Thus, the region is expected to become both the main producer and a major bunkering hub for bio-methanol.
Europe
Europe is expected to account for the second-largest share of the market. Demand is supported by FuelEU Maritime, the EU Emissions Trading System, which covers 100% of in-scope shipping emissions from 2026, and the Renewable Energy Directive, which counts renewable fuels used in transport toward national targets. Around 12 thousand tonnes of bio-methanol were sold as bunker fuel in Rotterdam in 2025, almost three times the 2024 volume. Thus, Europe is expected to remain the main demand center outside Asia. Within Europe, the Netherlands is the largest market due to bunkering in Rotterdam and chemical demand, while Sweden and Finland are the main producers of bio-methanol from pulp mills. Södra produces 5,250 tonnes of purified biomethanol annually at Mönsterås, and Veolia has developed a 12 thousand tonnes per year biomethanol unit at the Äänekoski mill of Metsä Fibre in Finland. Germany and Belgium account for chemical demand for mass-balance bio-methanol. Thus, European supply is expected to remain limited, with growing imports from China and North America.
North America
North America is expected to account for a smaller share of the market. Methanex can produce bio-methanol from renewable natural gas at its Geismar facility in Louisiana and at the Beaumont, Texas facility acquired from OCI Global in June 2025, which has bio-methanol capacity of up to 220 thousand tonnes per year, with much of the certified output sold to customers in Europe. In Canada, low-carbon fuel policies support early projects. Thus, North America is expected to remain an important production base, while domestic demand grows more slowly.
Latin America
Latin America and the Middle East & Africa are at an early stage of development. Brazil holds large sugarcane and forestry residue resources suitable for bio-methanol production, while ports in the Middle East are preparing methanol bunkering services along major shipping routes. Thus, these regions are expected to account for a small share of the market through the forecast period, with long-term potential as export hubs.
Competitive landscape
The global Bio-Methanol Market is at an early stage and is concentrated among a small number of producers with operating plants. Market participants include global methanol producers supplying mass-balance bio-methanol, energy and utility companies operating biomass methanol plants in China, equipment and industrial groups entering green fuel production, pulp and paper companies recovering crude methanol, and environmental services companies. Companies compete primarily on certified biogenic content, production cost, feedstock access, delivered price at bunkering ports, and long-term offtake agreements with shipping lines and chemical customers.
Leading companies are investing in biomass gasification plants, hybrid biomass and renewable hydrogen projects, biogas reforming capacity, and certification of mass-balance supply chains. Long-term offtake agreements with shipping lines, partnerships with port authorities and bunker suppliers, capacity expansions, and acquisitions remain the key strategies adopted by major players.
The report provides a comprehensive competitive assessment of the leading companies operating in the global Bio-Methanol Market. The key players profiled in the report include Methanex Corporation (Canada), The Hong Kong and China Gas Company Limited (Hong Kong), Shanghai Electric Group Company Limited (China), China International Marine Containers (Group) Co., Ltd. (China), Goldwind Science & Technology Co., Ltd. (China), Södra Skogsägarna ekonomisk förening (Sweden), and Veolia Environnement S.A. (France).
- Methanex Corporation
- Hong Kong and China Gas Company Limited
- Shanghai Electric Group Company Limited
- China International Marine Containers (Group) Co., Ltd.
- Goldwind Science & Technology Co., Ltd.
- Södra Skogsägarna ekonomisk förening
- Veolia Environnement S.A.
Expert perspectives
The Bio-Methanol Market is moving from small-scale chemical sales to a marine fuel market driven by regulation. With FuelEU Maritime and the EU Emissions Trading System in force, shipping lines operating methanol dual-fuel vessels need certified low-carbon methanol, and bio-methanol produced from residues is currently the lowest-cost certified option at commercial scale. The main uncertainty is not demand but the speed at which new plants reach stable operation.
Three structural changes are expected to shape competitive positions through 2036. First, China is expected to account for most new capacity, supported by low-cost biomass, renewable power, and domestic bunkering demand. Second, hybrid plants that combine biomass with renewable hydrogen are expected to blur the line between bio-methanol and e-methanol, making certification of the biogenic share a key differentiator. Third, long-term offtake agreements with shipping lines are expected to become the main route to market.
For companies planning entry or expansion, the most defensible positions are likely to be found in secured residue supply chains, low-cost biogas and pulp-mill routes, plants located near major bunkering ports, and long-term offtake agreements. For established methanol producers, mass-balance supply offers a low-capital entry point, but scale will require dedicated biogenic capacity.
The base-year market size of USD 113.9 million reflects a market that is still small relative to the global methanol industry, but which is expected to grow more than twentyfold by 2036. Most of this growth depends on plants that are already operating, commissioned, or under construction in China, and on the ramp-up of marine demand in Europe and Asia. The utilization of new plants and the delivered cost of bio-methanol at major bunkering ports are therefore the most important variables for the forecast.
Customer perspectives
Insights gathered during primary interviews with shipping lines, bunker suppliers, chemical buyers, and producers operating in this market highlight where procurement priorities are shifting. The following perspectives reflect recurring themes raised across these discussions.
“This reflects a broader shift in which shipping lines seek long-term offtake agreements to secure certified green methanol for their dual-fuel fleets ahead of tightening FuelEU Maritime targets.”
“This indicates that delivered price and certified biogenic content at the port of bunkering are becoming the main criteria for buyers.”
“This points to growing demand for mass-balance bio-methanol to produce bio-attributed derivatives for customers with product carbon footprint targets.”
Frequently asked questions
The global Bio-Methanol Market is estimated at USD 214.5 million in 2026, corresponding to about 233 kilotonnes. Volume is expected to roughly double from 2025 as plants commissioned in China in December 2025, including CIMC Enric Zhanjiang and the Shanghai Jinshan biogas methanol plant, ramp up production.
Cite this report
Meticulous Research. (2026). Bio-Methanol Market - Global Opportunity Analysis and Industry Forecast (2026-2036) (Report No. MR-2320). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/bio-methanol-market-7003