Jamal Al-Loughani, Secretary-General of the Arab Energy Organization (AEO) – formerly OAPEC – emphasized the critical role of low-carbon methanol as a sustainable and effective solution for reducing carbon emissions and achieving climate neutrality, particularly in hard-to-abate sectors like transportation and heavy industries.

Speaking to Kuwait News Agency (KUNA) on Tuesday during the launch of AEO's new study "Low-Carbon Methanol and Its Role in Energy Transition", Al-Loughani noted: "This study comes at a decisive juncture as nations accelerate their shift toward clean and sustainable energy sources."

Strategic Advantages for Arab Nations
The report positions low-carbon methanol as:

• A strategic option for Arab countries to meet climate targets

• A catalyst for energy source diversification

• A platform for regional cooperation through regulatory/investment framework development

Production Technologies
The study details technical methodologies including:
✓ Green hydrogen production via water electrolysis using renewable electricity
✓ Carbon capture from industrial facilities/biogenic sources

Market Outlook

• Investments: Exceed $10 billion in announced/developing projects as of mid-2025 (projected to double by 2030)

• Demand: Global market may surpass 20 million tons annually by 2035, driven by transportation fuels and petrochemical sectors

• Maritime Sector: 200+ methanol-powered vessels ordered since 2023, reflecting growing industry confidence

Economic Considerations
While production costs remain higher ($400-900/ton) versus conventional methanol ($150-250/ton), the gap is narrowing due to:
• Government incentives
• Technological advancements
• Rising carbon prices in regulated markets

Arab Region Readiness
Member states possess unique advantages:
✔ Abundant natural/renewable resources
✔ Advanced infrastructure
✔ Strategic geographic positioning within global supply chains

"Low-carbon methanol combines environmental efficiency, technical flexibility, and economic viability," Al-Loughani concluded, "making it a cornerstone of the transition to sustainable, low-emission energy economies."