Derivatives and end uses
Methanol derivatives and end uses
Methanol is one of the most important chemical building blocks, used as a raw material to produce thousands of products found in our homes, hospitals, offices, and construction sites around the world.
Around 70% of global methanol production goes into chemical derivatives, making the chemical industry the largest market for methanol worldwide. Methanol is rarely visible in the final product. Instead, it is transformed into intermediate chemicals that move through multiple stages of production before becoming materials used in everything from construction and paints to pharmaceuticals, textiles, and consumer goods.
Methanol derivatives
Formaldehyde
Formaldehyde is the single largest methanol derivative, accounting for around 23% of global methanol demand. It is primarily used to produce the resins and adhesives found in products such as plywood, particleboard, flooring, kitchen cabinets, and furniture.
Beyond construction materials, formaldehyde-based resins are also used in permanent-press textiles, paper coatings, and certain insulation materials. Globally, demand for formaldehyde is closely tied to construction activity, with Asia Pacific accounting for the largest share of consumption.
Acetic acid
Acetic acid is produced from methanol and carbon monoxide through a process known as carbonylation.
The two most widely used versions of this process are the Monsanto process, developed in the 1960s, and the Cativa process, which uses an iridium catalyst and is now the dominant industrial route.
Acetic acid is used to manufacture paints, adhesives, coatings, textiles, pharmaceuticals, and industrial materials. It is also converted into vinyl acetate monomer, which is used to produce polyvinyl acetate for paints, adhesives, and coatings. Acetic acid is also converted into cellulose acetate, which is used in textiles and photographic film, and into acetic anhydride, which is used in pharmaceutical products.
Beyond industrial applications, acetic acid is also the main component of vinegar, making it an important ingredient in the food industry.
Methyl tertiary butyl ether (MTBE)
Methyl tertiary butyl ether is made by reacting methanol with isobutylene and is primarily used as a fuel additive in petrol. It is typically blended at concentrations between 5% and 15% to improve octane levels and reduce the formation of carbon monoxide in vehicle exhausts, particularly in urban areas. MTBE replaced lead-based additives as the primary octane booster in petrol from the 1980s onwards.
MTBE demand varies significantly by region. While the United States phased out its use following groundwater contamination concerns in the late 1990s, it remains widely used in petrol blending across Europe, Asia, and the Middle East. It is one of the larger methanol derivatives by volume.
Methyl methacrylate (MMA)
Methyl methacrylate is a monomer produced from methanol and acetone, or through newer methanol-based production routes that are gradually replacing the older acetone cyanohydrin process. MMA is the building block for polymethyl methacrylate, known as acrylic glass or by brand names such as Plexiglas. Acrylic glass is widely used in architectural glazing, signage, retail displays, aircraft windows, and aquariums.
MMA is also used as a monomer in surface coatings, adhesives, and sealants, and in the production of polymers used in medical devices and materials.
MMA demand is growing, driven by construction, automotive, and electronics applications, where lightweight, durable, and transparent materials are increasingly valued.
Dimethyl ether (DME)
Dimethyl ether is produced by dehydrating methanol over a catalyst. It is a colorless gas at room temperature but can be stored as a liquid under moderate pressure, similar to LPG.
DME is used as an aerosol propellant in a range of consumer and industrial spray products and it has replaced chlorofluorocarbons in these applications. DME can also be used as a fuel. It burns cleanly with no sulfur and very low particulate emissions, making it an attractive option for diesel substitution in road transport and as a cooking fuel in regions where LPG is expensive or inaccessible. DME can also be blended with LPG in existing distribution systems, helping reduce the infrastructure investment required for adoption.
Demand for DME as a fuel is growing, particularly in China and parts of Asia, where it is used in residential cooking and industrial heating. In transport, DME-powered buses and trucks have been demonstrated in pilot programmes in Europe, and the fuel is also being explored for marine application.
Methylamines
Methylamines are produced by reacting methanol with ammonia at high temperature and pressure over a catalyst. The process produces a mixture of monomethylamine, dimethylamine, and trimethylamine, which can be separated and used in different applications.
Monomethylamine is used in the production of agricultural chemicals including herbicides and pesticides. Dimethylamine is used in the production of industrial solvents and water treatment chemicals. Trimethylamine is used in the production of choline chloride, an animal feed supplement used across the livestock industry.
Frequently asked questions
When we say methanol is a chemical building block, we mean it is one of the first steps in a long chain of manufacturing processes. Methanol is converted into other chemicals, which are then processed further to make many of the materials and products we rely on every day.
Think of it like flour in baking. You cannot see the flour in a finished loaf of bread, but it is the foundation for everything that follows.
The raw materials used in manufacturing can have a significant impact on the carbon footprint of the final product.
When low-carbon or renewable methanol replaces conventional methanol as a raw material in chemical manufacturing, the embedded emissions of downstream products can also be reduced. A product made using e-methanol, for example, can have a lower carbon footprint than an equivalent product made using conventional feedstocks.
This is becoming increasingly relevant as manufacturers look to understand and reduce Scope 3 emissions, including emissions associated with the raw materials they purchase. Low-carbon and renewable methanol is already available from commercial suppliers, with volumes expected to grow as more projects reach production.