NASDAQ: MEOH US $33.57
TSX: MX CDN $46.89

How Methanol is Produced

Multiple methanol pathways

Methanol can be made using carbon capture technology, with renewable feedstocks, or from green hydrogen combined with recycled carbon dioxide (CO₂).Methanex is exploring these multiple pathways as part of its work to progress low-carbon solutions.

To learn more, visit page 18 of the 2024 Sustainability Report.

*All lifecycle values of grams CO2e/MJ are approximate

Emissions values courtesy of Argus Media 2024 and the Methanol Institute.

Methanol Types and Production Methods

Select a type of methanol to learn more
Coal
Brown Methanol

Produced from coal, a non-renewable feedstock which is ~5 times higher in carbon intensity than methanol produced using natural gas. Methanex does not produce methanol from coal.

Natural Gas
Grey Methanol

Produced from Natural Gas, a non-renewable/fossil fuel feedstock.

The majority of the methanol that we produce at Methanex is grey methanol.

CCUS
Blue Methanol

Produced from a process that uses Carbon Capture and Storage (CCUS). The resulting product of this process is considered blue methanol and would have significantly lower emissions than conventional methanol.

In 2023, Methanex has confirmed the technical feasibility of CCUS at our Medicine Hat and Geismar sites—the most promising locations for implementing this technology. Despite technical feasibility, project economics require a price premium for blue methanol and we continue to gauge customer interest.

Renewable Electricity
E-Methanol

Produced using green hydrogen (ie hydrogen produced with renewable electricity), which when combined with CO2 captured from renewable sources (eg via bioenergy with CCS or Direct Air Capture) creates green methanol.

In 2023, we conducted a technical and economic feasibility study of incorporating electrolyzers (to produce hydrogen from renewable power) at our existing plants.

In 2024, we plan to further explore the feasibility of e-methanol specifically at our Geismar, U.S. and Damietta, Egypt sites. In the U.S., the 45V tax credits under the U.S. Inflation Reduction Act provide economic support for renewable hydrogen production. In Egypt, the location is advantaged because of its proximity to Europe, potential access to European incentives, and access to competitive renewable power and sources of CO₂.

Renewable Natural Gas
Biomass
Bio-Methanol

Produced from renewable natural gas (sourced from landfills, sewage plants or animal manure farms) -> We have received International Sustainability & Carbon Certification (ISCC) for bio-methanol production from renewable natural gas at our Geismar site in the U.S.

Produced from biomass feedstock -> Potential sustainable biomass feedstocks include but are not limited to (I) forestry and agricultural waste by products (ii) municipal solid waste and (iii) black liquor from the pulp and paper industry.

High Carbon Intensity
Low Carbon Intensity
Overview
Marine Fuel