Future of Green Methanol: Challenges and Opportunities with Eric Bober




Future of Green Methanol: Challenges and Opportunities with Eric Bober

Host Victoria Meyer sits down with Eric Bober, Senior VP at NexantECA, this week on The Chemical Show® to shed light on the evolving dynamics of green methanol, particularly in the context of shipping and sustainability. As the global demand for sustainable and low-carbon solutions grows, the chemical industry finds itself at a pivotal juncture. Methanol, a versatile and widely used chemical, is seeing increased attention as a potential game-changer in the quest for greener alternatives. This blog post explores the key insights from the podcast, diving into the current challenges, market developments, and future outlook for environmentally improved methanol.

The Evolving Landscape of Green Methanol

Pent-Up Demand vs. Evolutionary Production
When Victoria Meyer asked what’s changed since their last conversation, Bober emphasized that while the demand for green chemicals, particularly green methanol, continues to rise, the evolution of production methods seems to be lagging. This gap poses significant challenges for the shipping industry, which is increasingly looking to green methanol as a sustainable alternative to traditional fuels.

The Shipping Industry’s Demand for Green Methanol

Record Orders for Methanol-Ready Ships
Bober highlighted the record number of methanol-capable ships ordered in 2023—about 135, to be precise. These ships will start operations in the coming years, indicating that the industry is gearing up for a major shift towards sustainable fuels. However, the infrastructure to produce and supply green methanol is not yet fully developed, creating a potential mismatch between supply and demand.

Gray Methanol vs. Environmentally Improved Methanol
While there is enough gray methanol (produced from fossil fuels) available to meet some of the demand, the industry aims to transition to methanol with lower carbon intensity. Bober pointed out that we could likely see “steel on the seas before we have steel on the ground,” emphasizing the urgent need for investment and development in green methanol production facilities.

The Economic and Environmental Benefits

Financial Incentives and Consortiums
One critical factor in speeding up the development of green methanol is financial support. Bober noted that both subsidies and grants are available, which can serve as the necessary “carrots” to offset the high initial costs associated with green methanol production. Forming consortiums also plays a crucial role, allowing companies to leverage complementary strengths in feedstock supply, technology, off-take agreements, and shipping.

Government Policies: Carrots and Sticks
Different regions are adopting varied approaches to promote green methanol. In the U.S., incentives are primarily in the form of subsidies, while Europe leans more towards penalties for non-compliance with environmental regulations. These policy landscapes shape how enterprises approach the green methanol market, impacting their strategic decisions.

Overcoming Market Challenges

Cannibalization and Market Segmentation
Bober brought up the challenge of “cannibalization”—existing methanol producers worry about their current products being displaced by more expensive, environmentally improved methanol. To navigate this, companies need to employ smart market segmentation strategies. For instance, targeting market segments more willing to pay a premium for green products can help offset higher production costs.

Private Investment and Long-Term Opportunities
The involvement of project developers and private investors is a sign of a thriving market. Historically, opportunistic investments have led to market expansions, and Bober believes the methanol sector is now attracting similar interest for long-term gains. As the industry shifts from fossil-based to environmentally improved products, there is significant money to be made for those who can navigate this transition effectively.

Opportunities for Technological Innovation

Leveraging Core and New Technologies
Bober noted that the journey toward environmentally improved methanol could be accelerated by utilizing carbon capture technologies in existing plants. By capturing and reusing CO2, producers can make traditional plants more environmentally friendly. Incremental improvements, combined with innovative technologies like electrolysis for hydrogen production, can bridge the gap quicker than developing entirely new facilities.

The Future Roadmap

Immediate and Long-Term Solutions
In the short term, using existing gray methanol can serve as a stop-gap while new facilities are built. Over the long term, Bober emphasizes the importance of consortiums and strategic partnerships to expedite project development. With the right approach, the industry can turn pent-up demand into actual consumption.

The Role of Compliance and Strategy
As global policies and market pressures evolve, companies must adapt. Compliance with environmental regulations, combined with innovative market strategies, will be essential. As Bober mentioned, borrowing principles from marketing basics like segmenting the market can create economically viable paths for green methanol.


The conversation with Eric Bober underscores the complexity and urgency of transitioning to green methanol. While challenges remain, the industry’s proactive steps and strategic collaborations offer hope for a sustainable future. As the ships come online, the race is on to build the necessary infrastructure to fuel them. For the chemical industry, it’s not just about meeting demand; it’s about redefining how we approach production and sustainability.

Stay tuned to The Chemical Show for more insights from industry leaders as we explore the intersections of chemicals, business, and sustainability.

Be sure to check out Eric’s earlier episode, Episode 148: Exploring Sustainable Technologies and Green Chemicals

About Eric Bober

Eric Bober is a Senior Vice President at NexantECA, based in White Plains, New York.  With over 30 years’ experience in industry and consulting, Eric leads NexantECA’s global methanol and fertilizers team and is active in its Sustainable Fuels & Chemicals activities.  He has extensive experience in helping clients make fully informed investment decisions by providing fact-based insights as Independent Engineer/Lenders’ Technical Consultant in Project Finance engagements.  While at NexantECA, Eric has managed dozens of NexantECA teams in technology assessments, due diligence engagements, market assessments, business plan development, and technology concept evaluations.  Prior to NexantECA, Eric was a top technical and business consultant mainly in the forest products industry, where he and his work teams advised clients globally on developments and best practices relevant to cellulosic materials and processing.  Eric has a BS in chemical engineering from the University of Pennsylvania, and an MBA from the Wharton School of Business, University of Pennsylvania.