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Singapore: Industry expert clarifies rising misconception of methanol bunker fuel carbon intensity

Several industry stakeholders have expressed difficulties in meeting the stated carbon intensity of 90 gCO2e / MJ outlined by the Maritime and Port Authority of Singapore.
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RESIZED AND ADJUSTED Chris Chatterton (1)

A misconception by parties keen on supplying methanol as a bunker fuel at Singapore port is rising and needs to be addressed, observed methanol industry expert Chris Chatterton.

The Maritime and Port Authority of Singapore (MPA) on December 2023 issued the Expression of Interest (EOI) for the supply of methanol as a marine bunker fuel in the port of Singapore document to the bunkering sector.

In it stated: “The Participant shall propose methanol product(s) with a carbon intensity (CI) not greater than 90 gCO2e / MJ (well-to-wake) for bunkering in Singapore”.

Several industry stakeholders have expressed to Chatterton difficulties in meeting the stated CI of 90 gCO2e / MJ due to conventional grey methanol produced using current modern methods having a CI of between 90 to 95 gCO2e / MJ, or even higher in some cases, on a life cycle assessment basis.

Further, the parties were concerned of significant higher costs when considering the premium between fuel oil (HFO and LSFO) and more expensive green [carbon neutral] methanol.

“Guys, don’t sweat the premium! When we talk about green methanol in premiums, we are referring to 100% green methanol here and nobody is going to burn this product in commercial operations due to costs unless it is economically viable under prevailing policy or they are able to transfer these costs to cargo owners,” he exclaimed.

“Questions persist on how to meet the CI specification and some players are wondering if the methanol can be blended or needs to come direct unchanged from the manufacturing complex. This needs to be addressed but is technically very simple to do.”

Chatterton recommends the bunkering industry to utilise the Mass Balance Approach – a concept familiar with the chemical industry – which traces the flow of materials through a supply chain as a compliant method to lower the specific CI content of methanol for use as marine fuel (combusted).

Source: International Sustainability & Carbon Certification (ISCC)

Source: International Sustainability & Carbon Certification (ISCC)

“Not all methanol production plants are created equal and when you purchase methanol you are going to get a CI certificate stating the carbon dioxide (CO2) equivalent per Megajoule (MJ) from well-to-plant gate basis,” he informed.

“And just by blending the certified grade with a portion of green carbon neutral methanol you can effectively lower the CI value of conventional conventional methanol to meet the 90 gCO2e / MJ specification required by MPA.

“Singapore is an ideal hub to receive and trade varying specifications of certified grey, blue and green methanol from not only China, Middle East, but from any corner of the world, efficiently and cost-effectively.”

Availability of green carbon neutral methanol from China

Globally, “pilot” production projects are expected to produce over 6 million metric tonnes (mt) of green methanol in 2025, with up to 4 million mt coming from China, stated Chatterton who added a large portion of China’s green methanol will be derived from wind power, which is arguably the lowest cost wind resource with the highest capacity factor globally.

“Northeast China has a very high onshore wind capacity factor at above 95% which is amongst the best in the world and enough to provide baseload power rivalling utility scale gas fired powerplants,” he explained.

“China is also a world leader in renewable power production, whether solar or wind by a factor of two and has more than twice the renewable power capacity than USA.

“Further, China is the largest producer of renewable power equipment of any kind in the world and by far also the cheapest because they produce at scale; whether it’s wind towers, rotor blades, turbines, or solar panels – China is the outright leader in production capacity and has been so for many years.”

Most of China’s pilot scale projects set to produce green methanol are already in the final investment phase. To date, pilot projects in operation could only produce between 100,000 to 200,000 mt of green methanol per annum, and low volumes have resulted in higher prices for the green material.

However, once scaled up, these pilot projects will be able to produce 2-3 times more product to eventually lead to a softening of market pricing for green methanol, noted Chatterton.

Future prices and procurement of green methanol

“Therefore, there is no need to be too worried about the current methanol premium over HFO. There are certainly organisations able to provide methanol at more flexible terms, but these term contracts typically are for a longer duration,” he continued.

“A similar development took place for shipping’s transition to IMO 2020, when all majors instructed bunker suppliers needed to enter into long term contracts for at least a year to secure 0.50% sulphur limit VLSFO.”

Moving forward, Chatterton believes the combined factors of increased availability of green methanol, more efficient renewable power and power equipment cost structures, resulting in economies of scale will mean more affordable methanol from 2025 onwards – particularly from China.

“The green methanol producers in China are mainly pursuing ISCC EU certification which means it is compliant for use in Europe. With FuelEU kicking in, it will be even more ideal for shipowners to switch to using lower carbon and carbon neutral methanol as a sustainable marine fuel,” he ends.

Related: MPA receives 50 submissions for EOI to supply methanol bunker fuel in Singapore
Related: MPA issues EOI seeking for methanol bunker fuel suppliers in Singapore

 

Published: 20 May 2024

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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”.
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July 22, 2026

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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

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Western Baltic Engineering unveils green methanol bunkering vessel design for Klaipėda

Designed for flexible operations in shallow waters and local bunkering routes, the concept features an 800-metric-tonne green methanol capacity and the potential to supply up to 250,000 mt annually.

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July 20, 2026

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Western Baltic Engineering unveils green methanol bunkering vessel design for Klaipėda

Ship design and engineering service provider Western Baltic Engineering on Thursday (16 July) showcased its latest concept design for a green methanol bunkering vessel, developed for the operational needs of the Port of Klaipėda.

Designed for flexible operations in shallow waters and local bunkering routes, the concept features an 800-metric-tonne green methanol capacity and the potential to supply up to 250,000 metric tonnes (mt) annually. 

“It is Western Baltic Engineering’s first concept dedicated exclusively to green methanol bunkering, expanding our portfolio of alternative-fuel vessel solutions,” the company said in a social media post.

“Building on our experience in methanol-ready vessel design, it reflects our continued focus on enabling the industry’s transition to cleaner fuels.”

“As the maritime sector evolves, engineering companies have a responsibility not only to respond to market needs but also to anticipate future challenges,” said Marius Arkusauskas, Director at Western Baltic Engineering.

“By exploring emerging technologies and alternative fuel applications, we help our partners prepare for the next generation of maritime operations while contributing to a more sustainable future.”

 

Photo credit: Western Baltic Engineering
Published: 20 July, 2026

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China launches methanol shipping supply chain alliance to accelerate green transition

Marine fuel suppliers in the alliance include Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai), and Shenzhen Port Energy Development.
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July 17, 2026

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China Waterborne Transport Research Institute under the Ministry of Transport and China Transport News recently jointly launched a Methanol Fuel Shipping Supply Chain Innovation Alliance with 20 organisations spanning the shipping, port, energy, equipment, research and industry association sectors.

The alliance was officially announced during the main event of China Maritime Day 2026 on 11 July, where members also released a joint initiative to develop a collaborative methanol-fuelled shipping supply chain.

The alliance aims to implement China’s national strategy for green economic transformation and support the Ministry of Transport’s “One Network, Four Modernisations” initiative by building a safe, efficient, economical and reliable methanol marine fuel supply chain

Under the joint initiative, alliance members pledged to align with China’s national decarbonisation strategy by promoting methanol as a key pathway for the shipping sector’s green transition and optimising the industry’s energy mix.

The members also pledged to strengthen collaboration across the supply chain to improve coordination between bunker fuel production, transportation and end users while advancing technological innovation.

Lastly, the alliance will support the development of policies, planning and technical standards, promote resource sharing and joint research, and accelerate the large-scale adoption of methanol as a marine fuel.

The alliance brings together companies and organisations representing the entire methanol shipping supply chain.

Members include shipping and port members such as China Changjiang National Shipping (Group) Corporation, COSCO Shipping Bulk Co., Ltd., Shandong Port Group, and Wuhan Chuangxin Jianghai Shipping Co., Ltd.

Energy companies in the alliance include Sinopec Chemical Commercial Holding Company Limited and Methanex Corporation.

Marine fuel suppliers including Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai) Co Ltd and Shenzhen Port Energy Development Co Ltd are also part of the alliance. 

Equipment manufacturers in the alliance are CSSC 711th Research Institute, CSSC Power (Group) Corporation Ltd and Chongqing Hongjiang Machinery Co Ltd.

Research, media and industry organisations participating in the alliance include the China Waterborne Transport Research Institute, China Transport News, and the Methanol Institute.

The Methanol Institute said methanol is moving beyond individual projects towards coordinated action across the entire value chain. 

“And China continues to play a leading role in advancing methanol as a marine fuel,” it said in a social media post.  

“We’re proud to work alongside our fellow alliance members to help strengthen the methanol supply chain and support the continued growth of methanol as a marine fuel.”

 

Photo credit: David Yu from Pixabay
Published: 17 July, 2026

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