A new wave of methanol projects across the U.S. could dramatically expand production capacity, with 10 new plants and two expansions proposed that could boost output by more than 80 percent over 2024 levels, according to a new fact sheet by the Environmental Integrity Project (EIP).

Methanol is a type of alcohol that is used to make chemicals and fuels. During the peak of the shale gas boom in the mid-2010s, fossil fuel companies rushed to propose new methanol plants to profit from abundant supplies of cheap natural gas. Seven mega-projects were completed between 2013 and 2022, but nearly as many proposed projects were never built, and new development has been limited over the past five years.

The latest wave of proposals is being driven by policy incentives for lower-carbon fuels and anticipated demand from the shipping sector. With the support of tax incentives, many proposed methanol projects plan to use carbon capture technology, different production methods that emit less pollution, or alternative feedstocks like green hydrogen and biomass, producing what is referred to as “e-methanol” or “bio-methanol.”

As of March 2026, EIP has collected data on 12 methanol projects that have been proposed across the U.S. and could increase annual methanol production capacity by over 10.2 million metric tons per year. Three projects involve making “blue” methanol using natural gas with carbon capture. Six projects involve making methanol without fossil fuels. Of these, four will use “green” hydrogen made with renewable energy and water. Two projects, both planned for Louisiana, would make methanol using biomass.

Click here to download a copy of the methanol fact sheet.