# Methanol: Emissions

Coal versus gas: a threefold carbon gap

Source page: https://www.materialinsights.org/chemicals/methanol/emissions/

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.

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/methanol/index.md)
- [Overview](https://www.materialinsights.org/chemicals/methanol/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/methanol/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/methanol/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/methanol/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/methanol/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/methanol/cycles/index.md)
- [Trading](https://www.materialinsights.org/chemicals/methanol/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/methanol/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/methanol/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/methanol/characteristics/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/methanol/links/index.md)