Methanol

Methanol, also known as methyl alcohol, is a simple alcohol used widely as an industrial chemical feedstock and increasingly as a fuel. It is produced mainly from natural gas or coal through a syngas conversion process, though renewable and coal-to-methanol routes are also used in some markets. The chemical serves as a building block for formaldehyde, acetic acid, plastics and solvents, and is a component in producing biodiesel through transesterification. As a fuel, methanol is blended into petrol or used directly in specially adapted engines and marine vessels, offering a lower-emission alternative to conventional fossil fuels. Countries with abundant coal or gas reserves, including Indonesia and China, have pursued coal-to-methanol projects to diversify energy supply and add value to domestic resources. Methanol demand is closely tied to industrial activity, chemical manufacturing and the pace of energy-transition policies favouring cleaner-burning fuels. Production capacity and pricing are influenced by feedstock costs, particularly natural gas and coal prices, as well as regulatory support for alternative fuels. The industry faces scrutiny over the carbon intensity of coal-based methanol production compared with gas-based or green methanol alternatives. Investment in methanol plants often forms part of broader efforts by resource-rich nations to move beyond raw commodity exports into downstream processing and chemicals manufacturing.