The International Energy Agency (IEA) on Thursday said that the growth of plastics recycling and the potential decline in liquid fuels consumption could cap methanol demand in the next decades. However, the agency noted that this would only be reached if the commitment to the sustainability and clean energy reforms remains strong.
Methanol is a key intermediate in the manufacturing of chemicals and fuels. Methanol demand is expected to continue to increase into the coming decades. However, under the IEA’s sustainable development scenario, methanol consumption could peak in the mid-2040s. The scenario assumes the net-zero emissions are achieved by 2070.
According to the IEA, recycling reduces the need for methanol in virgin plastic production. At the same time, reduced fuel consumption due to the rising popularity of electric vehicles and clean hydrogen power will mark the peak of methanol demand. According to IEA, fuel application contributed to a third of methanol production. The agency’s sustainable development scenario projects that a large part of liquid fuel use will be eliminated during the projection period.
