Methanol

ENGINE on The Week in Alt Fuels: Why isn’t methanol catching up (yet)

In contrast to LNG, methanol-capable vessel orders have hit a wall; major challenge could be bunkering infrastructure as dedicated methanol bunkering facilities remain scarce outside key regions.

Published

1 year ago

March 10, 2025

Admin

Methanol-capable vessel orders have stagnated, even with the IMO’s mid-term measures looming on the horizon.

DNV’s latest vessel order tally shows a clear divide. Investments in LNG-capable vessels are rising, while methanol-capable orders have stalled. In February, 33 out of 34 alternative-fuel vessel orders were LNG-capable, marking a sharp jump from just 12 orders in January, said Kristian Hammer, senior analyst at DNV.

One key factor behind rising investments in LNG-capable vessels could be flexibility. While LNG is a fossil fuel, it is combusted in engines that can also run on bio-LNG and e-LNG. On a chemical level, these can be identical products – they are all methane. This means that LNG-capable dual-fuel vessels won’t be tied to fossil LNG forever, making the vessels a future-proof investment for shipowners.

With 685 LNG-capable vessels already in operation and another 634 on order for deliveries towards 2033, shipowners seem to be betting on this adaptability.

In contrast, methanol-capable vessel orders have hit a wall. DNV data shows that not a single methanol-capable vessel was ordered in February, raising questions about the industry’s appetite for the fuel.

A major challenge could be bunkering infrastructure. Dedicated methanol bunkering facilities remain scarce outside key regions like the ARA and select ports in Asia.

Only nine dedicated methanol bunker vessels are in operation today. They serve 57 methanol-capable ships, with nearly all of them deployed in Asia. Just six more bunker vessels are on order for delivery by 2026, when the methanol-capable fleet is expected to grow by another 173 vessels. The lack of dedicated methanol bunker vessels limits refueling options, often restricting bunkering to terminal-to-ship or tanker-to-ship operations.

Another drawback could be global availability.

The Methanol Institute’s database shows that most of the operational bio-methanol production plants today are concentrated in the US and Asia. Transporting bio-methanol from these locations to major bunkering hubs in Europe, the Middle East, Africa or South America could be a costly affair and complicate logistics, which could translate into a hefty price tag for bunker buyers.

On contrast, liquefied biomethane (LBM) – or bio-LNG – can leverage LNG’s well-established bunkering networks. Gaseous biomethane can be supplied to desired locations through existing gas pipelines using an accounting technique called mass-balancing and then liquefied near the point of bunkering. This eliminates the high costs of physically transporting the fuel between regions and could make LBM a more cost-effective and scalable option for shipowners.

Even where methanol bunkering is possible, the high cost of its greener variant presents another hurdle. A fuel cost calculator developed by the Maersk Mc-Kinney Center for Zero Carbon Shipping (MMMCZCS) estimates the VLSFO-equivalent cost of bio-methanol at $1,485/mt in the EU. In comparison, the VLSFO-equivalent cost of LBM is cheaper at $1,161/mt in Rotterdam.

Even with the IMO’s mid-term measures looming on the horizon, shipowners appear reluctant to invest in methanol-capable vessels, possibly due to infrastructure limitations, supply constraints and high costs. On the other hand, shipowners planning long-term strategies today may find LNG-capable vessels appealing because of the versatility of LNG-compatible engines to use more sustainable LBM.

In other news this week, Singapore-registered bunker vessels will be allowed to carry and deliver stems with up to 30% (B30) biofuel from tomorrow. The MPA has urged “shipowners, ship managers, operators and masters” of Singapore-registered conventional bunker carriers to comply with this circular. “There is no requirement to seek MPA’s separate approval,” the circular said.

US-based renewable energy firm StormFisher Hydrogen will produce 50,000 mt/year of e-methane at its proposed North American facility. The facility will use renewable energy input from wind and solar energy to produce green hydrogen via electrolysis and biogenic CO2 for feedstocks to then produce e-methane.

Hong Kong-based ship management firm Anglo-Eastern has launched a training skid for ammonia and LNG bunkering near Mumbai, India. The bunker station skid is equipped with cryogenic fuelling technology and safety systems, allowing for real-life simulations of ammonia and LNG bunkering operations.

The US Department of Energy (DoE) has modified a prior order issued to JAX LNG, removing regulatory barriers for LNG as marine fuel. The DoE will no longer exercise its Natural Gas Act jurisdiction over ship-to-ship LNG bunkering in US ports, US waters and international waters.

By Konica Bhatt

Photo credit: A.P. Moller-Maersk
Source: ENGINE
Published: 10 March, 2025

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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

3 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

Methanol

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.

Published

3 days ago

July 20, 2026

Admin

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