Methanol: Emissions

Coal versus gas: a threefold carbon gap

What this tab covers The greenhouse-gas footprint per tonne, split by lifecycle phase (feedstock, production, movement, use, end of life), the global total, other environmental impacts, levers and low-carbon routes, India's position, and where the investment opportunity lies. Emission intensity 2.60 t CO2e per t range 0.5-1.0 gas-based; 2.6-3.8 coal-based · cradle-to-gate world average, derived: IEA direct emissions of about 260 Mt (2022) over about 105-110 Mt of output gives about 2.4 t, plus about 0.25-0.3 t upstream; coal-heavy because China makes over half of world output Global emissions per year 260 Mt CO2 per year (direct, production) 2022 · methanol was 28% of the 935 Mt of direct CO2 from primary chemicals in 2022 (IEA); adding upstream feedstock emissions gives about 290-300 Mt cradle-to-gate, in line with IRENA's (2021) 0.3 Gt

Per t of methanol, cradle-to-gate. Intensity: IEA Chemicals tracking (2023); IRENA Innovation Outlook: Renewable Methanol 2021 (route ranges); derived (indicative). Global total: IEA, Chemicals tracking report (2023).

Share of footprint by lifecycle phase

Feedstock 10% Production / process 87% Movement 3%

Footprint by lifecycle phase

Phase	Intensity	Share	Main sources of emissions	Notes	Source
Feedstock	about 0.25-0.3 t CO2e/t	10%	gas production, methane leakage and coal mining (including coal mine methane)	methane leakage of 1-2% of gas supplied can add 0.1-0.3 t (indicative)	indicative
Production / process	about 2.2-2.4 t CO2/t world average (IEA-derived); about 0.4-0.6 gas, 2.3-3.5 coal	87%	reformer and boiler fuel, CO2 removed from coal syngas, air separation power	coal plants vent a nearly pure CO2 stream that is cheap to capture	IEA (2023, derived); IRENA 2021 (indicative)
Movement	about 0.05-0.1 t CO2/t for Gulf to India or China	3%	chemical tankers	short-haul for China domestic	indicative
Use	1.375 t CO2 per t if burned as fuel (stoichiometry)	–	fuel uses (about a quarter of demand) release the carbon; chemical uses lock it into products	e-methanol and bio-methanol burn biogenic or recycled carbon	stoichiometry
End of life	depends on derivative	–	MTO polyolefins and resin-bonded boards are incinerated or landfilled	not applicable to methanol itself	indicative

Other environmental impacts

Coal-to-methanol uses large volumes of water in water-stressed northern China. Methanol is acutely toxic but biodegrades quickly in water, unlike MTBE.

Levers to cut emissions

Capture the pure CO2 stream from coal gasification (low cost per tonne)
Switch reformer fuel and power to low-carbon sources
Blue methanol with CCS, about 8.7 Mt of Argus's 18.9 Mt low-carbon base case by 2030
Bio-methanol from waste and residues, 2.6 Mt by 2030 (Argus)
E-methanol for shipping under FuelEU and IMO rules

India

India's methanol footprint is mostly embedded in imports from Gulf gas plants. NITI Aayog warns that coal-to-methanol would emit about 190 gCO2e/MJ well-to-wheel against 95-100 for petrol, falling to about 80 with CCS, so coal gasification plans raise emissions unless capture is built in.

Emission figures are indicative global averages from the life-cycle studies named; actual footprints vary widely by site, energy mix and method.

Low-carbon routes

Route	Intensity	Cost premium	Status	Source
E-methanol (CO2 + green hydrogen)	near zero with renewable power and biogenic CO2	about $800-1,600/t against $100-250/t for fossil (IRENA 2021, indicative)	European Energy Kassø, about 42 kt a year, started May 2025; Orsted Star e-methanol in Texas lost a $100 million DOE award (Argus)	Argus (2025); IRENA (2021, indicative)
Bio-methanol (biomass or waste gasification, biogas)	32.9 gCO2e/MJ (RED threshold) down to -25 gCO2e/MJ	about $320-1,000/t (IRENA 2021, indicative)	Sungas Renewables in Louisiana (FID, target 2028); EM-Numancia in Spain (EUR 320 million)	Argus (2025); CRU BCInsight (Oct 2026)
Blue methanol (gas with CCS)	about 75 gCO2e/MJ (Argus)	modest; depends on CO2 storage	about 8.7 Mt expected by 2030 in Argus base case	Argus (2025)

For a climate investor Two openings stand out: green or bio-methanol for shipping and export, where Indian renewable power and biomass residues could compete, and CO2 capture on any new coal-to-methanol plant. What has to be true: shipping regulation (IMO Net-Zero Framework, FuelEU) must price carbon enough to close a $500-1,000/t premium. Active players include European Energy (Kassø), Maersk (13 methanol ships), Hapag-Lloyd (1 Mt a year from 2030) and, in India, Assam Petrochemicals and the coal gasification programme.