Kuwait city: The Secretary General of the Arab Energy Organization (AEO), Jamal Al-Loughani, emphasized the significance of low-carbon methanol in reducing carbon emissions and achieving climate neutrality, especially in challenging sectors like transport and heavy industry.
According to Kuwait News Agency, Al-Loughani made these remarks while discussing a new study on low-carbon methanol's role in the energy transition. He stated that the study is timely as global energy systems are rapidly shifting towards cleaner sources. He highlighted the strategic opportunity low-carbon methanol offers Arab countries to diversify energy mixes, meet climate targets, and enhance regional cooperation.
The study outlines production methods that utilize green hydrogen from renewable-powered electrolysis and captured CO2 from industrial or biological sources. It reports that global investment in low-carbon methanol projects has exceeded USD 10 billion as of mid-2025, with an expected market growth to over 20 million tons annually by 2035, driven by increasing demand in transport, fuel, and petrochemical sectors.
Al-Loughani noted that the shipping industry is already adopting methanol as an alternative fuel, with over 200 methanol-powered vessels on order globally. He mentioned that although current production costs are higher than conventional methanol, the gap is closing due to government support, technological advancements, and improved carbon pricing.
He further stressed that AEO member states are well-positioned to develop this industry due to their abundant natural resources, renewable energy potential, and strategic geographic location within global supply chains. The study concluded that low-carbon methanol presents a promising strategic option, combining environmental efficiency, technical flexibility, and economic viability, making it central to the transition towards a sustainable, low-emission energy economy.