Methanol vs. Ethanol: What's the Better Fuel Additive?

As India continues to go for cleaner and more sustainable fuel alternatives, methanol and ethanol have emerged as two of the most widely discussed fuel additives. From reducing emissions to enhancing engine efficiency, both alcohol-based fuels bring their own benefits and trade-offs. But when it comes to large-scale adoption in transportation and industry, which one is the better fuel additive?

In this blog, we compare methanol vs. ethanol in different critical parameters like pricing, performance, availability, and environmental impact, and see how trends like methanol price in India, methanol density, and ethanol use are shaping sourcing decisions.

What Are Methanol and Ethanol?

Methanol is a light, volatile alcohol and is often derived from coal or natural gas. It has been used a lot in industrial solvents, antifreeze, and more recently, as a fuel additive or alternative fuel.

Ethanol, on the other hand, is mostly derived from biomass like sugarcane, corn, or rice husk. It's already a familiar name in the transport fuel space, thanks to the Indian government's push for blending ethanol in petrol under its Ethanol Blending Program (EBP).

1. Density and Energy Efficiency

• Methanol density is somewhat around 0.7918 g/cm³, while ethanol's is 0.789 g/cm³. This makes methanol slightly denser, but not significantly so.
• However, ethanol offers higher energy content (about 76,000 BTU/gallon) than methanol (around 57,000 BTU/gallon), making ethanol more energy-rich.
• In practical terms: You need more methanol to generate just the same power output as ethanol.

This makes ethanol use more efficient in terms of fuel economy which is a big thing to consider for many automakers and fleet operators.

2. Price & Availability

• The methanol price in India currently ranges between ₹24–₹28 per kg, depending on region, grade, and sourcing channel.
• The methanol price remains relatively stable due to coal-based production, making it attractive for bulk buyers.
• In contrast, the ethanol price in India is higher, especially for food-grade and anhydrous ethanol used in fuel blends — averaging around ₹60–₹65 per litre.

This pricing difference gives methanol an edge in cost-sensitive industries, although availability and handling safety need to be considered.

3. Government Push: Ethanol Is Ahead

• The Indian government has been aggressively pushing ethanol use in fuels, targeting 20% ethanol blending (E20) by 2025.
• While methanol is also being tested (in M15 and M100 blends), ethanol is far ahead in terms of policy incentives, supply chain development, and oil company adoption.

This momentum positions ethanol as the more established fuel additive in India — at least for now.

4. Toxicity and Safety

• Methanol is toxic if inhaled or ingested and poses more handling risks than ethanol.
• Ethanol, being used in alcoholic beverages and pharma, is safer for human contact.

For sectors like public transport or fuel retailing, ethanol use is more acceptable due to its lower health hazards.

5. Application-Specific Choices

• Methanol is often favoured in industrial boilers, marine fuels, and power generation, especially where methanol price and methanol density justify its adoption.
• Ethanol use dominates in automotive fuels, especially in petrol-blended fuels and flex-fuel engines.

In niche markets — like racing cars or chemical feedstocks — methanol may still be the better fit.

So, What’s the Better Fuel Additive?

If you’re evaluating fuel additives for industrial heating or marine transport, methanol might win on price and stability. But for road transport and wide public adoption, ethanol use remains ahead due to safety, policy, and energy efficiency.

Nexizo: Your Platform for Tracking Fuel Chemical Prices

If you deal with large-volume procurement of fuel additives, keeping up with methanol price in India, ethanol price changes, and supplier availability is critical.

Nexizo gives you real-time updates, supplier history, and custom filters to:

• Compare methanol price
• Get verified vendors with lead times and grade specifications
• See fuel chemical tenders and sourcing opportunities
• Get price alerts and forecast trends in biofuel procurement

Final Thoughts

The future of fuel additives may evolve, but today’s procurement decisions still depend on price, compliance, safety, and long-term viability. Whether you choose methanol or ethanol, Nexizo helps you source smarter, negotiate better, and stay ahead in the energy game.

Start your free trial on Nexizo today and explore fuel additive sourcing like never before.