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Argus Media: Asia driving biomethanol as bunker demand shifts east

Until Europe scales its own production or tightens FuelEU rules, biomethanol prices, and compliance costs, will increasingly be set in Asia, not in the EU, says Argus.

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Asian biomethanol is pricing below Europe biomethanol, a gap that could widen as lower-carbon marine fuel compliance demand shifts east.

3 September 2025 

FuelEU Maritime rules allow certified low-carbon fuels bunkered outside the EU to count toward compliance, but Europe’s anti-dumping duties have raised the cost of Chinese biodiesel imports. The result is compliance arbitrage: shipowners can “mass-balance” biomethanol bought in Asia into their EU voyages, meaning they can use certificates proving equivalent Asian supply instead of physically bunkering in Europe. The result is that Chinese and Singaporean prices — and not those in Rotterdam — are setting the global benchmark.

The pace of this pricing change becomes clearer when looking back only a few months. On 5 May, Shanghai Port conducted its second commercial biomethanol bunkering: 3,110t for HMM’s methanol-capable vessel HMM Forest, following its first 2,902t delivery on 30 March. In July 2025, Towngas delivered 5,000t of ISCC-EU certified biomethanol via Tianjin to Singapore for bunkering trials, proving large-scale certified supply chains are viable. Shanghai Electric also started up a new ISCC-EU certified plant in Jilin province in July, explicitly targeting marine bunkering.

More supply is also coming online in Asia. Goldwind Green Energy plans to commission a 250,000 t/yr hybrid bio/e-methanol project in Inner Mongolia, in September 2025, with long-term offtake agreements already signed with Maersk (500,000 t/yr) and Hapag-Lloyd (250,000 t/yr). CIMC Enric will start trial runs at its 50,000 t/yr biomethanol plant in Guangdong this autumn, ramping up to 250,000 t/yr by 2027.

Prices reflect this eastward anchor.

In August, Argus assessed east China dob biomethanol at $1,000/t compared with $1,164.60/t at the Amsterdam-Rotterdam-Antwerp hub (see chart). With FuelEU accepting certified bunkering outside Europe, shipowners can mass-balance cheaper Chinese or Singaporean biomethanol into EU voyages, bypassing Europe’s higher biodiesel and e-methanol premiums.

European policy is amplifying the shift. Anti-dumping duties on Chinese biodiesel, ranging from 10-35pc, raise EU biofuel costs. Meanwhile, EU regulators have confirmed that certified fuels bunkered abroad can count toward FuelEU compliance, provided documentation is intact. That combination encourages owners to source in Asia, where supply is growing and prices are lower.

Risks remain. The EU is already tightening scrutiny of certification systems after fraud allegations in Chinese biofuels, and future reforms could restrict book-and-claim mass balancing. Industry groups also warn that the Union Database for Biofuels could impose costly fees, tight deadlines, and double-counting risks, potentially affecting biomethanol development.

But the trajectory is unmistakable. Argus tracks a pipeline of nearly 42.5mn t of low-carbon methanol capacity by 2030, much of it in China. China alone has announced 72 biomethanol and e-methanol projects (15mn t/yr), with 24 projects (3.2mn t/yr) under construction or at FID stage.

Singapore is also moving fast. Its Maritime and Port Authority announced a new methanol bunkering standard in March and opened methanol bunkering license applications. The five-year license, valid from 1 January 2026 to 31 December 2030, will be awarded in the fourth quarter to firms that meet safety and operational standards.

Demand is rising in tandem. As of August 2025, more than 60 methanol-capable vessels are in operation, with another 300 on order.

Until Europe scales its own production or tightens FuelEU rules, biomethanol prices, and compliance costs, will increasingly be set in Asia, not in the EU.

Biomethanol $/t

Biomethanol $/t

 

Photo credit and source: Argus Media
Published: 3 September, 2025

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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”.

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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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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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