Methanol, as both a chemical building block and a fuel, can support the transition to a low-carbon economy.
Methanol can help meet the increased demand for petrochemicals-based products and reduce air pollution and GHG emissions from combustion-related applications. Methanol can also be made from renewable sources, supporting the long-term decarbonization of both the chemicals that make modern life possible and the transportation sector.
By leveraging our existing production assets and leading market position and by collaborating with government and industry, we will drive solutions that can meet growing demand for our product in ways that respect the environmental commitments of our company, industry and customers.
Methanex’s Priorities
Three priorities guide our approach to the transition to a low-carbon economy: reducing emissions from conventional methanol, producing lower-carbon methanol, and growing markets for methanol.
Reducing Emissions from Conventional Methanol
Producing Lower-Carbon Methanol
Growing Markets for Methanol
Reducing Emissions from Conventional Methanol
Methanex is taking concrete steps to achieve our 10% GHG intensity reduction target by 2030, exploring multiple pathways to reduce the carbon intensity of our existing methanol plants. We continue to focus on plant efficiency, plant reliability and the use of catalysts at all our plants and are identifying ways to upgrade our existing facilities to improve energy efficiency and lower CO₂ emissions. Our Geismar 3 (G3) project will significantly lower the average GHG intensity of our asset portfolio, with start up expected in the fourth quarter of 2023. We estimate G3’s GHG emissions intensity will be one of the lowest in the industry, supporting our commitment to reduce Scope 1 and Scope 2 emissions intensity by 2030.
Methanex is also creating an internal roadmap to better understand our impact and areas of influence for sources of Scope 3 emissions. To read more about how we are working to reduce emissions from conventional production across our sites and about our 20+ efficiency projects in place, please see pg. 24-27 of the 2022 Sustainability Report.
Producing Lower-Carbon Methanol
While today we produce methanol from natural gas, methanol can also be made from renewable sources, such as renewable natural gas, biomass, and green hydrogen combined with recycled carbon dioxide. We are committed to pursuing opportunities to make incremental, staged investments that could facilitate the transition of our existing assets, where feasible, to produce lower-carbon methanol.
To read more about CCS and how renewable natural gas, alternative feedstocks, and renewable energy can be used to produce lower-carbon methanol, please see pg. 28-31 of the 2022 Sustainability Report.
Growing Markets for Methanol
Methanex is committed to growing markets for methanol as a chemical feedstock and fuel. We continue to promote the emissions benefits of methanol and leverage our investments and existing assets to develop a market for conventional and lower-carbon methanol as a “future-proof” fuel for a low-carbon economy.
Methanol as a Cleaner-Burning Marine Fuel
Methanol can support the decarbonization of the shipping industry, which currently accounts for 3% of man-made CO₂ emissions. With methanol available at over 125 of the world’s largest ports, its use as a marine fuel can help the shipping industry meet increasingly strict air emissions regulations.
Using conventional methanol as a marine fuel can reduce SOx and particulate matter emissions by more than 95%, and NO× by up to 80% compared to conventional marine fuels. Conventional methanol can reduce CO₂ emissions during combustion by up to 15 % compared to conventional fuels. The use of biomethanol can be carbon neutral on a lifecycle basis, providing a “future-proof” pathway to global and industry decarbonization goals.
Methanex and our subsidiary Waterfront Shipping (WFS) have been supporting the development of methanol as a marine fuel technology since 2013 and demonstrating the feasibility and safety of methanol as a marine fuel in our own dual-fuel vessels since 2016. With 18 dual-fuel vessels in our global fleet and over 130,000 safe running hours on cleaner burning methanol, Methanex is the proven leader in methanol fuel technology.
To read more about methanol as a marine fuel, please see the Marine Fuel page of the website and pg. 32-34 of the 2022 Sustainability Report.
Methanol as a Cleaner-Burning Passenger and Cargo Vehicle Fuel
Methanol is an affordable substitute for gasoline and diesel in countries looking to transition away from fuels that contribute to high levels of air pollution. Methanol’s efficient combustion, safety, ease of distribution and wide availability around the world make it an attractive alternative fuel for transportation. Methanol can be used as a transportation fuel in three ways:
| 1 | Additives or fuel blends |
| 2 | Fuel for passenger vehicles |
| 3 | Fuel for heavy-duty vehicles |
To read more about methanol as an alternative transportation fuel, please see the Vehicle Fuel & Thermal Applications page of the website and pg. 35 of the 2022 Sustainability Report.
Other Applications for Methanol as a Cleaner-Burning Fuel
To read about how methanol can be used as a fuel for thermal applications, such as industrial boilers kilns, heating furnaces, as well as a cooking fuel, please see the Vehicle Fuel & Thermal Applications page of the website and pg. 36 of the 2022 Sustainability Report.