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SIBCON 2020: Methanex Corporation explains its case for methanol as a marine fuel in interview

Company sees growing interest from industry leaders such as Maersk and Stena in adopting methanol as a marine fuel and anticipates trend to grow stronger.

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The following article is part of event coverage for the upcoming Singapore International Bunkering Conference and Exhibition (SIBCON) 2020; where Manifold Times is an official media partner:

Methanex Corporation, a Canadian company that supplies, distributes and markets methanol worldwide, believes the product makes for a practical and flexible marine fuel that would benefit all shipping sectors and geographic locations.

Deepak Devendrappa, Director, Global Market Development at Methanex Corporation, recently shared his perspective of the case with Singapore bunkering publication Manifold Times in an interview below:

Overall, how has the global methanol industry changed in the past five years, and has this changed encouraged the adoption of methanol as a marine fuel?

  • The methanol industry has grown substantially over the last five years. We estimate that the methanol market was approximately 84 million tonnes at the end of 2019 compared to approximately 58 million tonnes at the end of 2014.
  • We continue to see energy demand growth, including marine fuel, driven by regulations for clean-burning fuels such as methanol. We expect that the implementation of the 2020 IMO regulations and 2050 goals will increase interest in methanol as a marine fuel.
  • Beyond the impact of COVID-19, we expect to see strong demand growth for methanol globally as a chemical building block, where growth is linked with GDP and industrial production levels, and in an increasing number of energy-related applications and as a clean-burning and economic alternative fuel.

What factors led to the decision of Waterfront Shipping/Methanex to order methanol carriers which are able to consume the product as a bunker fuel?

  • We continually keep abreast of all possible fuel options, but we know the benefits of methanol very well, and we believe it has advantages for the wider shipping industry and will continue to champion this technology as a wider industry solution.
  • Adopting methanol dual-fuel engine technology enables us to diversify our fuel options and operate cost-effectively regardless of market conditions. Dual fuel engines give us the choice of using the lowest cost fuel that meets regulations. Methanol, as a liquid fuel, is compatible with existing bunkering infrastructure which simplifies this dual-fuel approach.
  • When we look to the future, methanol is also future proof because it can be produced from renewable sources providing a pathway to compliance with future IMO emission regulations.

Do you foresee all future newbuilding orders from your company to feature vessels using methanol as a marine fuel?

  • Methanex’ subsidiary, Waterfront Shipping, has a fleet of 30+ vessels and has a constant renewal and expansion strategy.
  • It will have to continue to upgrade and grow its fleet to keep up with market demand and we believe that methanol, as a marine fuel option, is best suited for our future fleet.
  • At the end of 2019, Waterfront had eleven of the world’s first 2-stroke dual-fuel vessels representing ~40% of its fleet and we look forward to growing this.
  • We are excited by the performance of our methanol-fueled vessels with over 80,000 operating hours experience which has proved the safety and reliability of the technology.  We, along with our partners, will continue to invest in new and improved methanol-fueled vessels.

What are the technical differences and advantages of using methanol as a bunker fuel, when compared to traditional bunker fuels?

  • Methanol is a liquid marine fuel that is clean-burning, cost-effective, globally available, safe and technologically proven.
  • From an environmental perspective, methanol reduces the emissions of:
    • Sulphur oxides (SOx) by ~99%
    • Nitrogen oxides (NOx) by at least 60% and to Tier III NOx (>80%) standards through water injection;
    • Particulate matter by 95%;
    • Carbon dioxide (CO2) by up to 15% (on a combustion basis) compared to conventional marine fuels
    • Renewable and bio-methanol provide a pathway to reduce GHG emissions up to 95% over the lifecycle.
  • From a safety perspective, methanol has been shipped globally for over 100 years. It is biodegradable in water in the event of a spill and much more benign and cleaner than other marine fuels.
  • From a cost efficiency and availability perspective, the infrastructure for methanol already exists in most of the world’s major ports and is easier and significantly less costly to establish than infrastructure required for other alternative fuels, since it can be stored in unpressurized containers.
  • Methanol has remained cost-competitive with MGO over the past 10 years on an energy equivalent basis.
  • From a technology perspective, methanol is technologically proven as a marine fuel.

Currently, methanol is mostly being used as a fuel by methanol carriers. Apart from methanol carriers, which other vessel segments will be ideal candidates to use methanol as bunkers during the initial stage of adoption and why?

  • Methanol could be used by any ship segment and, as a liquid fuel, by using a dual-fuel engine, you can mix with conventional marine fuels (or biodiesels) to provide an even lower cost solution and deliver on practical requirements.
  • Methanol’s flexibility as a fuel is embraced by a range of adopters and advocates:
    • WFS – chemical tankers
    • Stena – passenger ferry
    • Maersk – containers
    • Fassmer – research vessels etc
    • Proman/Stena build – chemical tankers
  • The incremental cost to build new vessels to run on methanol is significantly less than alternative fuel conversions.
  • The differences between a standard vessel design and a methanol dual-fuel design are minimal and revolve around the add-on methanol components to the 2 stroke engine and the additional methanol fuel supply system.
  • Some industry segments may be more challenging due to methanol’s lower energy density than conventional fuels, but this is even more of a challenge for other alternatives such as ammonia or hydrogen with even lower density.

Moving forward to the next five years, do you see the use of methanol as marine fuel spreading to other sectors? Can you give some examples of this already happening?

  • As above, methanol is a practical and flexible fuel that would benefit all shipping sectors and geographic locations.
  • We see growing interest from industry leaders like Maersk, Stena etc. in adopting methanol as a marine fuel and we anticipate this trend to grow stronger over the coming years.

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Photo credit: Methanex Corporation
Published: 8 October, 2020

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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