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Argus Media Q&A: Methanex says future of biomethanol is in shipping

Methanex, one of the largest methanol producers, told Argus in an interview, how it sees the future of biomethanol in the shipping industry and challenges in developing the new bunker fuel.

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Canadian firm Methanex, one of the largest methanol producers, told Argus how it sees the future of biomethanol in the shipping industry, and the challenges the development of this new fuel could face. The firm recently completed what it dubbed the first ‘net zero’ shipping voyage fuelled by biomethanol blend.

27 March 2023

What role do you think renewable methanol will play in achieving net zero emissions in the shipping industry?

Methanol has emerged as a leading alternative marine fuel as shipping companies recognise its low-carbon potential. Currently, there are more than 125 vessels operating or on order and many more projects under development for methanol newbuilds and conversions.

As most new vessels are starting to come online over the next couple of years, regulations and bunkering infrastructure are being developed in ports globally to support the transition. Because methanol is already used in over 120 ports and is handled and bunkered similarly to diesel, we expect the transition to be relatively straightforward for methanol compared with other alternative fuels.

How was the ‘net zero’ of your first biomethanol voyage counted?

During the 18-day voyage, net-zero greenhouse gas emissions on a lifecycle basis — including the production process — were achieved through the use of a fuel blend, comprised of 80pc ISCC certified bio-methanol with 20pc natural gas-based methanol.

The bio-methanol used in this voyage was produced from renewable natural gas (RNG) derived from captured methane from animal manure feedstock, which would have otherwise been emitted into the atmosphere. Instead, burning it as a fuel, which releases CO2, has a far lower warming effect than the previously captured methane, which is 25x more potent than CO2 according to the EPA. Marine gasoil (MGO) was also used as a pilot fuel, representing approximately 5pc of the fuel used.

Bureau Veritas then conducted an audit of the greenhouse gas emission calculations from the biomethanol fuel blend — plus all the other fuels — consumed during the voyage. Also, the Climate Neutral Commodity, an independent certification party validated the net-zero voyage against best practices as defined by the ISCC and issued the certification.

Do you see the demand for renewable methanol mainly coming from the shipping industry or elsewhere?

We see significant demand potential emerging in the marine sector as a large and growing number of shipping companies are ordering — or considering — methanol vessels as greenhouse gas regulations become more stringent. We are also seeing increasing interest in lower-carbon methanol for use in other fuel and chemical applications.

How does the demand for green methanol compare with green ammonia? Does green methanol have a competitive advantage, if any?

One of the unique qualities of methanol versus ammonia is that it is a liquid fuel under ambient conditions. This makes methanol easy to transport, store and bunker using standard safety procedures that are similar to the well-established procedures for diesel. Thus, the cost of methanol-fuelled vessels and land-based infrastructure to store and supply methanol is significantly lower than other alternative fuels that require pressurization or cryogenics.

Methanol also has a higher volumetric energy content than alternative fuels such as ammonia or hydrogen and requires less frequent bunkering as well as being more environmentally benign compared with other options as it dissolves in water and biodegrades rapidly.

What are your future plans for green methanol production?

While today we produce methanol from natural gas, methanol can also be made from renewable sources, such as renewable natural gas, biomass, and green hydrogen combined with recycled carbon dioxide. Because our manufacturing facilities have a lifespan of several decades, and the process to make methanol remains largely the same regardless of feedstock used, we can easily modify existing infrastructure to produce lower-carbon methanol. Methanex is currently exploring pathways to gradually decarbonise our existing plants using alternative feedstocks or renewable electricity.

In addition, pursuing staged investments allows us to adjust production based on product demand and feedstock availability. We also plan to invest an additional $1 mn in 2023 to refine the potential scope and for a Carbon Capture and Storage (CCS) investment in Geismar, Louisiana.

This year, we will also conduct a technical and economic feasibility study using green hydrogen at existing plants to produce methanol with a lower carbon intensity. If the concept proves viable, lower-carbon methanol could be produced alongside conventional methanol at some of our sites, to match the growing market needs for low-carbon methanol.

What challenges are you facing in achieving these plans?

‘The green premium’ refers to the gap between the cost to produce lower-carbon methanol and what customers are willing to pay for it. While we are seeing the gap narrow, this remains a key challenge to scaling the production of blue or green methanol.

We are currently working to develop concepts, test feasibility and liaise between customers and suppliers on this. As markets and regulations shift and government incentives evolve, we are continually working to understand what solutions our customers want, gauge their willingness to pay a premium for blue or green methanol, and facilitate the supply needed to meet demand.

By Portia Kentish

 

Photo credit and source: Argus Media
Published: 30 March, 2023

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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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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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