Methanol Project Pipeline Shows Continued Growth

The total capacity for renewable and low-carbon methanol projects globally has expanded, reaching 62.2 million tonnes (Mt) by 2032, according to recent industry analysis. This represents a modest increase from the previous month's figures, indicating ongoing development in the sector.

This updated projection encompasses 286 individual projects currently being tracked. The breakdown of this capacity includes 25.1 Mt of e-methanol, 25.9 Mt of biomethanol, and 11.2 Mt of low-carbon methanol, reflecting a diverse approach to sustainable fuel production.

The project pipeline experienced a month-on-month increase of 0.4 Mt. This growth was supported by the addition of two new projects to the tracking system, while one previously stalled project was removed from consideration.

Further activity in the market was observed with the registration of four new offtake agreements during the reporting period. These agreements were evenly split between biomethanol and e-methanol, signalling growing commercial interest in both production pathways.

Currently, approximately 8% of the cumulative renewable methanol project pipeline capacity has reached a final investment decision (FID). An additional 11% of the capacity is in the front-end engineering design (FEED) stage, indicating further progress towards realisation.

Despite the positive trajectory, industry projections suggest that actual renewable methanol capacity could range between 6 Mt and 12 Mt by 2031. This forecast acknowledges prevailing uncertainties related to regulatory frameworks and the pace of demand growth within the market.

These developments aim to support the maritime industry's transition towards methanol as a primary marine fuel, aligning with future emissions regulations.