Green Methanol, Key to the Energy Transition

Green methanol allows the reduction of harmful emissions entering the atmosphere through their chemical production process

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Green methanol allows the reduction of harmful emissions entering the atmosphere through their chemical production process. Carbon dioxide from gas currently produces the majority of the world’s methanol. This fossil methanol varies according to the quality and origin of the gas.

Net zero emission

Methanol production and use results in approximately 165 million mt/year of carbon emissions. This represents 0.3% of the world total, according to the International Methanol Producers and Consumers Association. Methanol also comes from coal.

This production only takes place in China, but has an even higher carbon footprint. This grey methanol is currently widely used in the transportation industry. Since the beginning of the year, conventional methanol prices have averaged below $380/mt.

Green methanol appears to be a solution to the problem, although it is more expensive. Thus, the green energy source sells for as little as $400/mt. Thus, it would help achieve net zero emission goals.

Towards mass production

Green methanol is defined as methanol produced by a process that emits little or no greenhouse gases. It is produced from sustainable biomass, usually called biomethanol. As well as from carbon dioxide and hydrogen produced from renewable electricity, generally called e-methanol.

The term “renewable methanol” also makes its appearance. It refers to methanol that reduces the intensity of greenhouse gases. It appears to be a sustainable source of fuel.

Companies are now looking to mass produce renewable methanol. Moreover, it is possible to obtain it from different raw materials. Examples include municipal solid waste, biomass, biogas/biomethane and black liquor.

Two manufacturing processes

Green methanol, produced either by gasification or from biogas, has low carbon emissions. Gasification uses biomass and municipal solid waste (MSW) to produce biomethanol. Biogas comes from organic matter such as manure or straw.

Green methanol from gasification requires several major steps. Syngas comes from the oxidation of a fuel at high temperatures. Finally, the synthesis gas is purified and transformed into methanol by a catalytic process.

Green methanol from biogas is produced by the anaerobic decomposition of organic matter. Then, the biogas is transformed into synthesis gas. Finally, it undergoes distillation as in gasification.

A production of the future

The production from biogas also concerns agricultural production residues producing raw biomethanol. It is transformable into clean methanol free of nitrogen and sulfur. This material is obtained from pulp mills.

Methanol remains the most shipped chemical in the world today. The interest in switching to its more ecological equivalent is therefore paramount. The number of international companies that have entered the biomethanol sphere and are using it continues to grow.

Today, research is focused on the most efficient and least expensive way to produce green methanol. This reduction in carbon emissions will be particularly beneficial for the industrial and transportation sectors. Many companies already use methanol, such as BASF.

Vistra Corp. finalises the purchase of seven natural gas power plants totalling 2.6 gigawatts, strengthening its presence in key US electricity markets.
Tidewater Midstream and Infrastructure has finalised the sale of its non-core Sylvan Lake site to Parallax Energy Operating for $5.5mn, with limited impact on its 2025 results.
U.S. gas deliveries to Mexico reached 7.5 billion cubic feet per day in May, driven by rising demand in the power sector and new cross-border interconnections.
The Algerian national company has restarted a key liquefaction unit in Skikda, strengthening its export capacity amid massive investment in the gas sector.
Doha and Washington warn Brussels about the consequences of EU sustainability requirements on liquefied natural gas exports, as the continent’s energy security remains under pressure.
The Volans-1X exploration well revealed a 26-metre productive zone in the Orange Basin, marking another hydrocarbon find for Azule Energy partners in 2025.
Faced with the absence of commercially viable results on the Guercif permit, Predator Oil & Gas has initiated a sale process while continuing technical evaluation of the gas potential.
According to the Oxford Institute for Energy Studies, a stable gas price of $6/MMBtu would boost global demand by 60 billion m³ in the short term and 120 billion m³ by 2035, mainly driven by Asia.
Kazakhstan’s Karachaganak gas field has reduced output by nearly one-third following an incident at a key Russian gas processing plant targeted by a Ukrainian drone strike.
Kinetiko Energy reports production levels above economic thresholds at two Mpumalanga wells, strengthening the technical viability and development potential of its liquefied natural gas project.
National Fuel Gas Company acquires CenterPoint Energy’s natural gas distribution business in Ohio, doubling the size of its regulated portfolio and expanding its footprint in the US Midwest.
The United States, Canada and Mexico together plan a 151% increase in liquefied natural gas export capacity, representing more than half of expected global additions by 2029.
European Union member states have approved the principle of a full ban on Russian natural gas imports, set to take effect by the end of 2027.
CMA CGM becomes the first international container shipping company to commission LNG-powered ships from an Indian shipyard, all to be registered under the Indian flag.
KLN strengthens its industrial project portfolio with progress on the WHPA platform in Libya, a major offshore site valued at over HK$10bn ($1.28bn), aimed at supporting regional gas supply.
US LNG producer Venture Global will report its Q3 2025 financial results before markets open, followed by a conference call for investors.
NextDecade confirmed a final investment decision for Train 5 at Rio Grande LNG, backed by full $6.7bn funding, marking its second decision in a month.
Sudan seeks partnership with Belarus to rehabilitate its energy grid amid prolonged humanitarian, economic and logistical crisis.
The Malaysian group launched three tenders to sell up to five liquefied natural gas cargoes in November and December, sourced from its Bintulu and PFLNG Dua facilities.
The South African government ends a thirteen-year freeze on shale gas, paving the way for renewed exploration in the Karoo Basin amid a national energy crisis.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.