Alternative Fuels

IDTechEx research outlines issues towards using methanol as a bunker fuel

‘Green methanol is still a hydrocarbon, and its use can only sustain current carbon levels since it re-emits the carbon captured to make it,’ states Principal Technology Analyst.

Published

3 years ago

March 8, 2023

Admin

Recent research by independent market research and business intelligence provider IDTechEx on Tuesday (7 March) highlighted several advantages and disadvantages towards using methanol as a bunker fuel.

The report ‘Fuel Cell Boats & Ships, a Methanol to the Madness’ noted green methanol to be amongst the most comparable alternative fuels to diesel in terms of energy density.

“And since methanol can be transported as a liquid at around ambient conditions, existing diesel bunker infrastructure can be modified for methanol rapidly at low cost, in contrast to liquid hydrogen and ammonia which require much lower liquefaction temperatures (-253C and -33C, respectively),” stated Luke Gear, Principal Technology Analyst at IDTechEx.

“These advantages make the logistics of using methanol easy, making it attractive for ship operators.

However, the documented stated of several disadvantages towards using the material as a marine fuel.

“Green methanol is still a hydrocarbon, and its use can only sustain current carbon levels since it re-emits the carbon captured to make it,” explained Gear.

“This undermines its potential as a long-term solution compared to green hydrogen and ammonia, particularly as the IMO shifts focus towards regulating greenhouse gases.

“Nonetheless, high concentrations of CO2 are created as a by-product in methanol systems, which lends itself to (re) carbon capture.

“This creates the potential for a more ‘circular’ approach which would keep carbon out of the environment, although this is currently a secondary priority for suppliers and adds cost and complexity.”

Another factor important in the midterm is that green methanol is still a derivative of green hydrogen, he noted.

“For the next decade, green hydrogen will be in short supply, expensive, and demanded by multiple sectors for the so-called hydrogen economy – funnelling it into first-use applications will be the most efficient way to lower emissions,” he wrote.

“The industry must also factor in the continued use of LNG or methane. While LNG emits powerful greenhouse gases with methane slip, the fuel has a similar performance to methanol and can also be created artificially with green hydrogen and carbon capture (e-methane).”

Though the bunker infrastructure for liquid methane is costly (due to the -153C storage requirement, it has been growing for decades due to initial regulation focused on reducing emissions of SOx, NOx, and PM, recognised Gear.

“The question becomes: is it worth dividing resources to develop LNG/methane, ammonia and hydrogen, and methanol?” He asked.

“Choosing to develop a few promising solutions quickly, rather than everything everywhere all at once, would be wise.

“Hydrogen and ammonia create a long-term pathway to zero GHG emissions. Between the hydrocarbons, LNG has a similar performance to methanol and is already widely developed today. Moreover, the continued importance and demand for LNG carriers were indeed highlighted in 2022 with the disruption to natural gas pipelines.”

Overall, Gear believed it is easy to envisage a future with broader adoption of hydrogen PEMFC and batteries in the mid-term and ammonia SOFC adoption in the long term for a true pathway to zero emissions.

“However, the slow development of these solutions could create opportunities for methanol,” he said.

“What is clear is that decarbonizing the marine industry is an immense challenge and one which will continue to rely on multiple solutions, investments, new regulations, collaboration, and testing from both the public and private sectors.”

Photo credit: IDTechEx
Published: 8 March, 2023

Biofuel

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

Company says it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply.

Published

6 hours ago

July 23, 2026

Admin

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

South Korean petroleum and refining company S-Oil on Wednesday (22 July) said it has started supplying B30 very low sulphur fuel oil (VLSFO), as the company seeks to support shipping’s decarbonisation efforts and growing demand for lower-carbon bunker fuels.

The company said its B30 VLSFO contains 30% sustainable biofuel blended with conventional VLSFO and can be used without requiring modifications to existing vessels, enabling shipowners to comply more readily with emissions regulations from the International Maritime Organization (IMO) and the European Union (EU).

S-Oil said it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply. The system combines VLSFO produced at its Onsan refinery with biofuel production facilities and storage infrastructure in the Ulsan region, allowing the entire process to be carried out within a single logistics hub.

According to the company, the integrated supply chain reduces transportation requirements during production while improving supply efficiency and reliability.

S-Oil also highlighted Ulsan Port as a strategic location for marine biofuel supply, noting the port has strong demand for bio-bunker fuels, particularly from car carriers, enabling prompt and stable deliveries to key customers.

An S-Oil official stated: “In the bio-marine fuel market, not only product quality but also securing a stable supply of raw materials and an efficient supply system are important competitive advantages.

“Based on our existing bunkering business capabilities and the excellent supply infrastructure in the Onsan area, we plan to supply stable and competitive low-carbon fuel.”

Photo credit: S-Oil
Published: 23 July, 2026

Bunker Fuel

Antwerp-Bruges biofuel bunker sales drops 36% on year in Q2 2026, LNG down 13.4%

Biofuel recorded 26,833 mt in Q2 2026 with 41,939 mt recorded in the same period the year before while port data showed 76,513 mt of LNG being delivered in Q2 2026, down from 88,328 mt.

Published

6 hours ago

July 23, 2026

Admin

The Port of Antwerp-Bruges recently published bunker fuel sales data for the second quarter (Q2) of 2026.

Total bunker sales at the port was 2.05 million metric tonnes (mt) in Q2 2026, compared to sales of 1.99 million mt (+3%) during the similar period in 2025.

Deliveries of ultra low sulphur fuel oil, very low sulphur fuel oil, high sulphur fuel oil and marine gas oil in Q2 2026 (against on year) recorded respectively 164,987 mt (+43.6% from 114,917 mt), 537,926 mt (+12.8% from 476,746 mt), 659,182 mt (+11.6% from 590,544 mt) and 366,329 (-15.7% from 434,766 mt).

Biofuel recorded 26,833 mt in Q2 2026 with 41,939 mt (-36%) recorded in the same period the year before.

Port data showed 76,513 mt of liquefied natural gas (LNG) being delivered as a marine fuel in Q2 2026, down by 13.4% from 88,328 mt in Q2 2025. Meanwhile, there has been no deliveries of methanol at the port for the year so far.

Photo credit: Port of Antwerp-Bruges
Published: 23 July, 2026

Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

Published

1 day ago

July 22, 2026

Admin

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai.

Arctic Tern is the first vessel in the new Shaper Class series of car carriers.

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation.

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator.

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations.

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

Photo credit: World Fuel
Published: 22 July, 2026