Market analysts recently indicated that 2025 marks the breakthrough year for e-methanol, as the technology finally transitions from pilot and small-scale projects to the commissioning of the first commercial plants. This clean fuel—designed to decarbonize transportation and chemical industries—will experience rapid expansion across global markets.

Electrolyzed methanol has existed for decades. It uses renewable electricity as its core driver, combined with carbon dioxide capture technology, to convert water and carbon dioxide into methanol, achieving carbon resource recycling. Its synthesis involves three key technological steps: hydrogen production via water electrolysis, carbon dioxide capture, and catalytic methanol synthesis. This process demands high stability in renewable energy supply and high efficiency in electrolysis equipment. If green electricity is used throughout the synthesis and carbon dioxide is captured efficiently, carbon neutrality or even negative emissions can be achieved. Moreover, the product boasts high purity, making it suitable for high-precision applications like fuel cells that are sensitive to impurities.

The shipping industry has emerged as an early adopter of green methanol, with over 60 methanol-fueled vessels currently in operation and another 300 on order. Approximately 20 ports worldwide now possess methanol bunkering capabilities.

The chemical industry accounts for nearly 70% of global methanol consumption, making it the primary demand driver for green methanol. In 2024, approximately 35% of green methanol was utilized in the chemical sector. Over 70 of the world's top 100 chemical producers have committed to achieving carbon neutrality by 2050, highlighting green methanol's growth potential in this field.

In aviation, synthetic methanol theoretically serves as a precursor for Sustainable Aviation Fuel (SAF), with companies like ExxonMobil advancing related R&D. Although biofuels currently dominate this sector, methanol-to-aviation fuel production is poised to become a future growth market for electronic methanol as capacity expands.

Alongside this healthy demand growth, the world's first commercial-scale electronic methanol plants have begun operations. On May 13, 2025, the world's first commercial-scale electronic methanol plant commenced production in Kars, Denmark. With an annual capacity of 42,000 tons, the facility supplies companies including Maersk and Novo Nordisk. The project utilizes electricity from a nearby solar power plant for electrolysis and sources bio-based carbon dioxide from a local biogas plant. Just two months later, the world's second electronic methanol plant commenced operations in China. Located in Taonan City, Jilin Province, and constructed by Shanghai Electric, this project employs wind power for electrolysis and produces electronic methanol through biomass conversion. Phase one of the project has an annual capacity of 50,000 tons, with plans to expand to 250,000 tons per year in phase two.

Market analysts view these two projects as merely the beginning of the electronic methanol industry's development. While the field presents significant opportunities and has made notable progress, it still faces a long journey before becoming mainstream. First, electronic methanol remains uncompetitive in cost compared to fossil fuel-derived methanol. Although prices are declining, as of 2024, e-methanol remains two to three times more expensive than fossil-based methanol. However, significant price reductions are anticipated as the industry scales up. Additionally, regulations implemented by entities like the European Union have increased the cost of petroleum-based fuels, indirectly boosting the competitiveness of e-methanol.

Beyond economic hurdles, the broader clean energy investment landscape also poses challenges for e-methanol development. Energy giants are scaling back or reevaluating commitments in this sector—notably, Ørsted canceled its FlagshipONE project in 2024 due to lower-than-expected demand growth, while the U.S. withdrew billions in clean energy subsidies. These developments collectively impact e-methanol's trajectory.

As an integrated internet platform providing benchmark prices, on December 3, the benchmark price of methanol on SunSirs was 2127.50 RMB/ton, an increase of 0.35% compared with the beginning of the month (2120.00 RMB/ton).

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