Why is formic acid price so high compared to methanol despite similar production routes?

Formic acid has long been a niche chemical with a domestic market of only several hundred thousand tonnes, keeping prices firm and limiting broader adoption. Unlike methanol—which benefits from massive research investment and applications like methanol-to-olefins, methanol-to-gasoline, and hydrogen carrier roles—formic acid research has lagged. However, its potential as a hydrogen carrier is gaining attention. Formic acid can be produced via methanol carbonylation using only CO with methanol recycled, avoiding hydrogen input entirely. It releases hydrogen at room temperature and pressure with minimal CO impurities. Its volumetric energy density is 2.13 kWh/dm³, four times that of hydrogen gas. The main drawback is lower gravimetric hydrogen content at 4.4wt% versus methanol's 12.5wt%, but formic acid's easier handling and cleaner decomposition make it competitive for decentralized hydrogen supply.