Applications ofMethanol

There are two main applications of methanol, chemical intermediate use and energy use. According to Methanol Market Services Asia (MMSA), a Singapore based methanol consulting firm, 48% of the total demand is for the chemical intermediate use and the rest, 52% is for the energy use.

The predominant use of methanol, of 30% of the whole demand, is the feedstock of formaldehyde, which is largely used in the adhesives for wood panels and wood products. The second largest demand lies in alternative fuels, such as gasoline blending, DME and biodiesel, making up 21% of the total demand.

The third largest use of methanol is for Methanol-to-Olefin (MTO) production (19% of the whole demand), followed by methyl tert-butyl ether (MTBE) with 12% demand and acetic acid with 8%. Acetic acid has been utilized as a feedstock of acetate tow for filters of cigarette and intermediates of polyvinyl alcohol, but recently the use as a reaction solvent to produce polyester fiber intermediates is increasing.