The use of methanol as an alternative marine fuel was pioneered by Methanex’s subsidiary Waterfront Shipping and its shipping partners. Methanol is a safe, proven, cost-competitive marine fuel for the commercial shipping industry that can meet or exceed current and planned emissions regulations. With methanol storage in place at over 125 of the world’s largest ports, its use as a marine fuel can help the shipping industry meet increasingly strict air emissions regulations.
Why Methanol as a Marine Fuel?
| 95% | As a marine fuel, methanol can reduce emissions of SO× and particulate matter by more than 95 per cent and NO× by up to 80 per cent compared to vessels running on traditional marine fuel (heavy fuel oil). |
| Decarbonization pathway | Biomethanol and e-methanol can comply with the EU requirements and support the achievement of International Maritime Organization’s ambitions due to their low lifecycle emissions. |
| >125 | >125 of the world’s largest ports already have methanol storage in place.
|
| >57% | Of Waterfront Shipping’s fleet uses methanol dual-fuel technology in 2024. |
The adoption of methanol as a marine fuel is increasing across the globe
Demand for dual-fuel (methanol and diesel) ships is growing across the globe. Based on current orders, more than 350 methanol ships are expected to be in operation by 2030. Demand is increasing, driven by methanol’s ability to meet maritime GHG regulations and the flexibility of methanol infrastructure.
Methanol is one of the few fuels that can meet the strict European Union (EU) and International Maritime Organization regulations. In 2023, the FuelEU maritime initiative was adopted by the EU Council requiring well-to-wake GHG intensity of fuels used by the shipping sector calling on EU ports to decrease over time, see the graph below.
The IMO is currently developing regulation to ensure its climate targets are met, which include an ambition to net-zero absolute emissions from international shipping by or around 2050.
Figures in this graph are from https://cms.zerocarbonshipping.com/media/uploads/documents/Methanol-Documentation-for-Navigate-1.0_2022-06-07-104417_jrhh.pdf
Demonstrating safe methanol bunkering
Bunkering is the supplying of fuel for use by ships including the logistics of loading and distributing the fuel among available shipboard tanks. Although global regulations for methanol bunkering are still being developed, we continue to prove that methanol is safe to ship, store, handle, and bunker using procedures similar to those used for conventional marine fuels. There are three types of bunkering but over the last few years, we have focused on demonstrating ship-to-ship bunkering.
To learn more, visit pages 34 to 36 of the 2024 Sustainability Report.