By Greentech Lead Asia: The global market for Methanol
will reach 61.7 million metric tons by the year 2017. Increased production
capacity, infusion of substantial investment and entry of new players will
drive this growth. Methanol will gain from its tremendous potential as
alternate transport fuel and use in environment friendly bio-fuels and chemical
feedstock.
According to new report by Global
Industry Analysts, global demand for Methanol is expected to surge in the
following years. Application of Methanol in fuel is expected to influence this
growth. Methanol demand from developing markets of Asia, Middle East, and Latin
America will retain the rapid growth momentum.
Asia-Pacific clearly leads the global growth in the
Methanol market, capturing the largest share of the overall market. The region
is forecast to race ahead at a robust CAGR of 8.7 percent through 2017. Rapid
development of chemical, construction and automobile industries, and increased
usage of the chemical in various end-use segments including alternative fuels,
acetic acid, pharmaceuticals, and fuel cells among others is encouraging the
market growth in the Asia-Pacific region.
The outstanding growth of Methanol market in China is
driving the growth in the global market. China, a leader in using methanol as a
blend of conventional fuels, is investigating MTG (Methanol-To-Gasoline)
technology. The country has been producing a major share of the global Methanol
output and increasingly importing Methanol from global markets to address the
rising domestic demand.
Worldwide production capacity as well as production of
methanol is expected to surge in the following years. The sector is expected to
witness substantial infusion of investments, and the entry of new players into
the market.
Recently, the use of Methanol in the production of
bio-diesel, and as an additive to conventional fuels is increased globally.
Demand for Dimethyl ether, which can be used as a substitute for diesel among
other applications, is on the rise. Methanol is currently being used in
trans-esterification stage of Biodiesel
manufacturing process, the demand for methanol is likely to increase in this
space and compensate for some of the demand lost to Methyl tertiary-butyl ether
(MTBE).
Several countries are increasingly using biofuel to lower
dependence on fossil fuels. The EU’s Renewable Energy Directive (RED) placed a
target of about 10 percent by the year 2020 biodiesel market has reached
approximately 10 million tonnes in Europe, expanding consistently at 25 percent
per year.
Methanol Alternative Fuels market is positioned
as the largest and fastest growing methanol category, expected to surge at a
strong double-digit growth rate of more than15 percent over the analysis
period. Worldwide, fears over energy security and increasing uncertainty over
the availability of crude oil in future have given a fresh lease of interest in
methanol globally.
Several countries are embarking on initiatives to
introduce methanol blend in conventional fuels or to promote the use of
dedicated Methanol vehicles. Leading automobile companies are planning to
produce Methanol vehicles In Asia.
In Europe, countries such as Sweden are preparing for
testing low Methanol concentration blends, while the Netherlands has
successfully completed testing of M85 vehicles through a rally.