Methanol plays an important role in the chemical industry, and is an emerging energy fuel currently mostly produced from fossil fuels. A transition to renewable methanol – derived from biomass or synthesised from green hydrogen and carbon dioxide (CO2 ) – could expand methanol’s use as a chemical feedstock and fuel while moving industrial and transport sectors toward net carbon neutral goals. The cost of renewable methanol production is currently high and production volumes are low. But with the right policies, renewable methanol could be cost-competitive by 2050 or earlier.