Methanol: properties, production and applications
Methanol (methyl alcohol, CH₃OH) is the simplest member of the alcohol class and one of the most important products of the modern chemical industry. It is a colourless, mobile, flammable liquid with a characteristic odour, miscible with water and most organic solvents in any proportion. The molar mass of methanol is 32.04 g/mol, its boiling point is 64.7 °C, and its melting point is minus 97.6 °C. Methanol is a large-tonnage petrochemical product: global production is measured in tens of millions of tonnes per year, and the product occupies a leading position among organic intermediates alongside ethylene, propylene and ammonia.
Chemical Nature and Properties
Methanol is a saturated monohydric alcohol in which the hydroxyl group is bonded to a methyl radical. It is a solvent fully miscible with water, which distinguishes it from many other organic liquids. Methanol possesses high reactivity and is a versatile chemical building block. It undergoes esterification, oxidation, dehydration, carbonylation and many other reactions.
The physical properties of methanol determine its applications. Its low boiling point allows easy distillation in rectification processes. Its high heat of combustion makes it an attractive energy carrier. The density of methanol at 20 °C is 0.791 g/cm³.
Toxicity and Safety
Methanol is a toxic substance. Ingestion of even small quantities (from 3.16 to 11.85 g of pure methanol) can cause blindness, and a dose of about 30 g can be fatal. The main mechanism of toxic action is associated with the metabolic conversion of methanol to formic acid, which causes metabolic acidosis and damage to the optic nerve.
Strict precautions must be observed when working with methanol. The maximum allowable concentration of methanol vapour in the working area air is 200 ppm (260 mg/m³) as a time-weighted average and 250 ppm (325 mg/m³) as a short-term limit. Methanol is highly flammable, and its vapours form explosive mixtures with air. Contact with strong oxidisers may cause spontaneous ignition.
Production Technologies
Industrial methanol production is based on synthesis from syngas — a mixture of hydrogen, carbon monoxide and carbon dioxide. Syngas can be produced by several methods.
Steam reforming of natural gas is the most common method. Natural gas (methane) reacts with steam at high temperature (700–1000 °C) in the presence of a catalyst to form syngas. This method is economically efficient in regions with cheap natural gas.
Coal gasification is the second most common method, widely used in China, where coal reserves are large and natural gas is expensive. Coal is gasified to produce syngas, which is then converted to methanol.
Biomass gasification is a promising method for producing "green" methanol from renewable feedstock.
Synthesis from CO₂ and green hydrogen (e-methanol) is an innovative direction enabling methanol production with a minimal carbon footprint. Carbon dioxide is captured from industrial emissions or from the atmosphere, and hydrogen is produced by water electrolysis using renewable electricity.
After syngas production, it is compressed and fed into a methanol synthesis reactor, where at a temperature of 200–300 °C and a pressure of 50–100 bar, the reaction to form methanol takes place over a copper-based catalyst. Methanol is condensed, and the unreacted gas is recycled back to the reactor to increase overall conversion.
Global Production and Market
The global methanol market demonstrates steady growth. In 2025, the market volume in physical terms amounted to 115.92 million tonnes, and in 2026 it is estimated at 120.16 million tonnes. By 2031, growth to 143.74 million tonnes is projected at a CAGR of 3.65%.
In monetary terms, estimates vary depending on methodology: from USD 34.16 to 47.44 billion in 2025. By 2032–2034, the market may reach USD 57–72 billion at a CAGR of 4.3–6.0%.
The Asia-Pacific region is the largest methanol market, driven by high demand from the chemical and energy sectors of China and India. China remains the world's largest producer and consumer of methanol. North America and Europe demonstrate steady growth, supported by environmental regulations and the transition to cleaner fuels.
The world's largest methanol producer is Methanex, with production assets in North America, Latin America, Africa and the Asia-Pacific region. Other significant players include SABIC, LyondellBasell, Mitsubishi Gas Chemical, as well as Chinese coal companies.
Applications of Methanol
Methanol finds wide application in the chemical industry and energy sector.
Formaldehyde production. This is the largest consumption segment for methanol — about a quarter of global demand. Formaldehyde is used to produce phenol-formaldehyde, urea-formaldehyde and melamine-formaldehyde resins, which find application in woodworking, particleboard and MDF production, as well as adhesives and binders.
Acetic acid production. Methanol serves as a feedstock for acetic acid production via carbonylation. Acetic acid is a key monomer for polyethylene terephthalate (PET) and many other polymers.
Methanol-to-Olefins (MTO/MTP). This technology enables the conversion of methanol into ethylene and propylene — base monomers for plastics production. In China, MTO capacity has exceeded 24 million tonnes per year, making this one of the fastest-growing segments in methanol consumption.
Methyl tert-butyl ether (MTBE). Methanol is used to produce MTBE — a high-octane gasoline additive. MTBE accounts for about 11% of global methanol demand.
Dimethyl ether (DME). Methanol serves as a feedstock for DME — a clean-burning diesel fuel and propellant.
Fuel applications. Methanol is used as a standalone fuel for internal combustion engines, as an additive to gasoline and diesel, and as a fuel for marine engines. The International Maritime Organization (IMO) sets strict emission reduction requirements, stimulating the shipping industry's transition to methanol. Major shipping companies have contracted the supply of hundreds of thousands of tonnes of green methanol per year.
Solvents. Methanol is used as a solvent in the paint and coatings industry, adhesives, inks and pharmaceuticals.
Fuel cells. Direct methanol fuel cells (DMFC) are used for portable electronics and backup power.
Methanol Production in Russia
Russia possesses significant potential in methanol production. The combined capacity of Russian producers is estimated at 4–5 million tonnes per year, with a significant portion of output oriented towards export. In 2025, methanol production in Russia grew by 4% to 3.96 million tonnes. In 2026, output will remain at about 4 million tonnes amid weak domestic demand and increasing exports.
A key event for the industry was the launch of the Nakhodka Mineral Fertiliser Plant (NMFP) in Primorsky Krai. The President of Russia initiated commissioning work at this complex during the Eastern Economic Forum. The plant's design capacity is 1.8 million tonnes of methanol per year (5,400 tonnes per day). Investments in the project amounted to RUB 220 billion. The launch of the plant will increase methanol production in Russia by 45% and significantly boost the non-resource non-energy export of Primorye. The plant will produce its first products in spring 2027.
A large methanol production facility is also planned in Volgograd within the special economic zone "Khimprom" jointly with Chinese partners. The plant's design capacity may reach 1.5 million tonnes per year, with investments estimated at RUB 74 billion.
Russian methanol producers have the capacity to replace falling supplies from the Middle East to the Chinese market, opening additional export prospects.
Conclusion
Methanol remains one of the key products of the global chemical industry, combining the functions of a universal chemical feedstock and a promising energy carrier. Growing demand for formaldehyde, acetic acid and olefins, the development of MTO technologies, and the shipping industry's transition to low-carbon fuels ensure sustainable growth of the global methanol market. Russia, possessing significant capacities and implementing large investment projects, is strengthening its position in both the domestic and international methanol markets. The development of "green" methanol production technologies from renewable feedstock and captured CO₂ opens new prospects for this essential petrochemical product.