METHANOL - ONE OF THE MOST VIABLE FUTURE FUELS

Meeting the industry's decarbonisation targets requires a complete transition to zero-carbon future fuels and new sources of clean energy to power the commercial fleet. While there are several new fuels in the mix, the future and main make-up of the bunkering supply chain within shipping will likely comprise of a combination of ammonia, biofuels and methanol.

Methanol is viewed as one of the more mature alternative fuels; it has been safely carried as cargo for decades and is the world's most shipped chemical commodity with more than 95 billion litres manufactured every year.  Most significantly, and why it is attracting significant interest as a sustainable marine fuel, is that renewable methanol can reduce carbon dioxide (CO2) emissions by up to 95%, nitrogen oxide (NOx) emissions by up to 80% and eliminate sulphur oxide (SOx) and particulate matter (PM) emissions.

PRODUCTION CAPACITY AND NEW BUILD PROJECTS

In May 2024, the Methanol Institute revised its demand estimates for renewable methanol production from eight million tonnes by 2028 to 20 million tonnes over the same period. This is based on the rising number of dual-fuel vessel orders and the increase in production projects. In December 2023, Cosco signed conversion contracts to retrofit two existing 13,800 teu and two 20,000 teu vessels to operate on methanol, with options on a further nine vessels. And Ocean Network Express also confirmed shipbuilding contracts for a dozen neo-panamax dual-fuel methanol container vessels with the Jiangnan Shipyard and Yangzijiang Shipbuilding, both in China and both building six vessels each.

Bunkering infrastructure is naturally following these developments. The vanguard for global bunkering, Singapore, is leading the charge, and the Maritime Port Authority of Singapore (MPA) has proposed plans to provide end-to-end methanol bunkering solutions in the region from 2025, positioning it as a methanol hub for the commercial fleet, with demand forecast to exceed one million tonnes per annum before 2030.

METHANOL FUEL SUPPLY SYSTEM DESIGN

Methanol systems are designed in collaboration with engine makers, ship owners and regulating bodies such as classification societies. The basis of each methanol system design is the engine maker's requirements. The requirements for the engine are documented in the Project Guide of each methanol system project. In relation to other parts of the system, all functions (such as tank management and bunkering) need to be defined and designed by the shipyard and the ship owner.

Methanol systems are available for both newbuilds and retrofits, for 2-stroke and 4-stroke engines and for other methanol consumers. Retrofits are economically viable for methanol, which also makes it a leading contender in the future marine fuels mix.