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VPS examines methanol as a marine fuel for decarbonisation

Steve Bee of VPS explores methanol’s potential as a bunker fuel, the challenges ahead, industry standards to support its usage and VPS’s role in supporting this transition.

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Steve Bee, Commercial Director of marine fuels testing company VPS, on Tuesday (3 December) explored methanol’s potential as a marine fuel, the challenges ahead, industry standards to support its usage and VPS’s role in supporting this transition: 

Introduction

It’s very apparent, global shipping’s drive to decarbonise is well underway. The ship-building profile is changing dramatically, highlighted by the 2023 order book showing 539 new builds capable of running on low-to-zero carbon fuels, being ordered. This equates to 45% of all orders in terms of gross tonnage. LNG dual-fuel vessels are currently the most popular vessels of choice, but Methanol-capable vessels have gained traction. Looking at Jan-Sept 2024, 49% of the gross tonnage on order was for vessels configured to be alternative fuels ready, with this specific order book growing by 24% year on year. It’s obvious that shipping is keeping its options very much open and looking for as much flexibility as possible, when it comes to the fuel choices for its ships.

The industry currently bunkers 230 Million mt of fuel per year. Burning this fuel equates to emissions of 716M mt of CO2-equivalent, as the majority of the fuel burnt continues to be traditional fossil fuels. However, the list of environmental legislation and directives to reduce emissions from shipping is ever-increasing in order to reduce SOx, NOx, Particulate Matter, CO2, Methane and other Green House Gases.  It is this regulatory demand which is driving the developments of numerous alternative low-to-zero carbon fuels for marine use.

VPS has been and continues to be, at the forefront of fuels research & development and continues to pioneer and develop test methods for such fuels.

Methanol bunkers and bunkering facilities are growing with 13 ports now offering methanol. But this methanol is predominantly grey, and Tank-to-Wake emissions from grey methanol are similar to conventional fossil fuels. The maritime sector must look to use the sustainable “green” methanol options of e-methanol, bio-methanol, or blue methanol:

VPS examines methanol as a marine fuel for decarbonisation

IRENA forecast e-methanol will reach a production level of 250M mt and bio-methanol will reach 135M mt by 2050. 

Currently we see 39 methanol-powered ships on our sees, but a further 262 are on order.

As with all fuels, there are numerous pro’s and con’s to using methanol as a marine fuel: 

Methanol fuel handling and management is certainly easier than that for LNG, with retrofit costs being less expensive and easier. Plus, green methanol sources offer almost near-zero GHG emissions.

In terms of ECA compliance Methanol conforms to SOx, NOx and PM content. It is biodegradable, miscible with water and a liquid at atmospheric pressure, all of which are positive factors in terms of fuel management and handling.

As demand grows, methanol should become more cost competitive, with increasing number of ports providing methanol.

However, methanol has half the energy of maritime’s current fossil fuels and a Flash Point of only 12ºC. Current availability of green methanol, is still an issue, yet this year industry news has highlighted that some green methanol projects have been cancelled, eg one in Antwerp (Orsted) and Flagship-One in Sweden.

Over the past 2 years, VPS have made significant investments in CAPEX for new laboratory equipment, plus the training of laboratory staff, technical advisors and bunker quantity surveyors, in order to survey, sample and test methanol bunkers.

The summer of 2023 saw VPS act the partner of choice to Maersk and undertook work during the maiden voyage of the Laura Maersk. We surveyed, sampled and tested, the methanol loadings in Singapore, Port Said and Rotterdam. As part of the requirements, changes to bunkering practices and procedures included heightened H&S processes, increased levels of tank cleaning, the use of closed-sampling devices and the use of biofuel as the pilot fuel, which also required testing. Testing was under the International Methanol Producers and Consumers Association (IMPCA) specification, with the results all on specification from all three loadings.

Since then, VPS has also worked with OCI covering similar work on the ECO Maestro.

In October 2024, it was announced at SIBCON-24, that Singapore will release a new technical reference standard for Methanol before year end, which covers fuel transfer, quality and quantity measurements as well operational and safety instructions as well as crew training. VPS has been closely involved in the development of this new Methanol Standard by being part of the Working Group.

This same group will also release a similar standard for Ammonia in 2025.

The announcement from Singapore was followed by a further notification from the International Standards Organisation (ISO) in November 2024. The ISO announcement highlighted the release of the publication of the first edition of their international standard for methanol as marine fuel, ISO 6583:2024.  This standard sets the requirements and limits for three methanol grades for marine: MMA, MMB and MMC. It uses the IMPCA specifications as a starting point, with some properties less critical for marine and other fuel related aspects not covered. Grade MMC allows for wider tolerances in certain characteristics compared to MMB, while MMA includes additional requirements for lubricity and cleanliness. The new Singapore Methanol Standard will make reference to the ISO 6583 for quality requirements under its custody transfer section.

Summary

As decarbonisation and legislation drives the development of low-to-zero carbon fuels, demand for methanol will grow as it provides an excellent way to achieve immediate reductions of emissions compared to fossil fuels.

VPS are experienced in providing methanol surveying, sampling and testing work and capable of offering key technical support to our customers.

All of this is evidence that the global shipping industry is well on its way and intent on delivering upon its decarbonisation goals, but with many challenges still to overcome.

Related: SIBCON 2024: Singapore launches two new bunkering standards, revises third benchmark
Related: ISO publishes international standard for methanol as a marine fuel

 

Photo credit: VPS
Published: 4 December, 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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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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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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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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