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LR: Total cost of ownership a potential barrier for methanol propulsion on passenger ships

Report shows TCO for passenger ships retrofitted with methanol dual-fuel engines to be more than double the cost of blended fuel (Blend B30), HFO and HFO with carbon capture technology.

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Stena Germanica

A new report from Lloyd’s Register (LR), released recently, found that the total cost of ownership (TCO) for passenger ships retrofitted with methanol dual-fuel engines to be more than double the cost of blended fuel (Blend B30), heavy fuel oil (HFO) and HFO with Onboard Carbon Capture and Storage technologies (oCCS).

LR’s Fuel for thought: Methanol for Passenger Ships examined the TCO for operators over a 15-year period and based results on a calculation that 65% of voyage time would be spent in EU waters. 

Overall findings identified in the report, based on analysis by the LR Business Advisory team, show the bunkering price of methanol to be the main commercial barrier for its adoption, with the use of less environmentally friendly fossil based (grey) methanol a more commercially attractive proposition for passenger shipowners than a blend of 50% grey, 25% bio- and 25% e-methanol, even when EU emissions taxes are taken into account.

However, the study highlights that methanol is a technically viable fuel for ship operators looking to reduce the carbon emissions of passenger ship newbuilds, owing to the similar characteristics of methanol to existing fuels. 

Viable retrofit paths have also been taken to the sector, such as the pioneer LR project for the Stena Germanica back in 2015. This technical viability is reflected in the global orderbook with passenger ships ranging from small inland vessels to the largest cruise ships awaiting delivery.

The report also outlined that greater investment is needed in green and bio-methanol production along with improved bunkering infrastructure to increase fuel availability and reduce costs to a commercially viable level.

Natasha Pritchard, VP Strategic Key Accounts (Cruise), Lloyd’s Register, said: “Our latest Fuel for thought report brings some much-needed insights for passenger ship owners evaluating methanol as part of their energy transition pathway.”

“Whilst methanol as marine fuel holds considerable promise as a low carbon solution for passenger ship propulsion, the total cost of ownership (TCO) compared to other fuels may represent an obstacle to its widespread take-up in the segment.”

“It is therefore vital that renewable and low-carbon production of methanol is prioritised in order to drive down these costs.”

 

Photo credit: Stena Line
Published: 14 March 2024

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Methanol

CRI delivers world’s largest e-methanol reactor to Liaoyuan project in China

First phase of the project has a production capacity of 170,000 mt of renewable methanol annually, supporting demand for low-carbon fuels in shipping, chemicals, and other sectors.

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CRI delivers world’s largest e-methanol reactor to Liaoyuan project in China

Carbon Recycling International (CRI) has recently delivered the largest of its kind e-methanol reactor for the Liaoyuan E-Methanol Project in Jilin Province, China. 

CRI, a company that develops and deploys technology that converts carbon dioxide emissions into renewable methanol, said the delivery and successful installation of CRI’s proprietary methanol converter reactor is a major construction milestone. 

“The project continues to progress according to plan toward commissioning and start-up later this year,” it said. 

The Liaoyuan project is being developed by CRI’s client Tianying Group (CNTY) and once commissioned will become the largest e-methanol facility in operation globally. 

The first phase has a production capacity of approximately 170,000 metric tonnes (mt) of renewable methanol annually from green hydrogen and captured biogenic carbon dioxide, supporting the growing demand for low-carbon fuels in shipping, chemicals, and other sectors seeking practical and scalable pathways to decarbonisation.

The methanol converter reactor forms the core of CRI’s proprietary Emissions-to-Liquids (ETL) technology. Designed and supplied by CRI, the reactor is where renewable hydrogen and captured carbon dioxide are converted into renewable methanol through the company’s proven industrial-scale process. It has been specifically designed and constructed with operational flexibility as a key feature and represents the third generation of CRI’s e-methanol reactor design.

The successful installation represented a significant construction milestone and marked the transition to the final stages of project execution.

“The installation of the methanol converter reactor is an important milestone for both Tianying and CRI,” said John Milner, Project Manager at Carbon Recycling International. 

“The reactor is the core of our ETL technology and embodies nearly two decades of innovation, engineering development, and commercial operating experience. Seeing this equipment installed at one of the world’s most ambitious renewable energy projects is a proud moment for our team and a major milestone as the Liaoyuan facility advances toward commissioning and start-up.”

CRI’s technology is already deployed at commercial scale at the company’s reference plants in Anyang and Lianyungang, and the Liaoyuan project represents the next step in the continued deployment of carbon recycling technology to support the production of renewable fuels and chemicals.

 

Photo credit: Carbon Recycling International
Published: 7 July, 2026

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German bunker supplier Heinrich Wegener & Sohn joins Global Ethanol Association

Both will advance the development of ethanol and methanol bunkering by fostering collaboration across the maritime value chain.

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German bunker supplier Heinrich Wegener & Sohn joins Global Ethanol Association

Heinrich Wegener & Sohn, a family-run German company that supplies marine fuels and lubricants to the shipping industry, recently joined Global Ethanol Association as its newest member. 

With a long-standing reputation in maritime logistics and bunkering, the association said Heinrich Wegener & Sohn brings valuable expertise and industry leadership at a time when demand for low-carbon marine fuels is accelerating.

“Together, we look forward to advancing the development of ethanol and methanol bunkering by fostering collaboration across the maritime value chain, supporting infrastructure development, and helping enable the transition to cleaner, more sustainable shipping,” it said. 

The company, founded in 1929, focuses on the supply of marine diesel, gas oil, methanol, and certified biofuels in accordance with the RED II directive.

As a German reseller for Gulf Oil Marine, the company supplies marine lubricants to over 380 ships worldwide on a contract basis.

 

Photo credit: Heinrich Wegener & Sohn
Published: 7 July, 2026

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Methanol

OOCL dual-fuel boxship completes first green methanol bunkering op at Qingdao Port

“OOCL Wisdom” completed its first green methanol bunkering and commenced its maiden voyage to Europe at Qingdao Port on 3 July.

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OOCL dual-fuel boxship completes first green methanol bunkering op at Qingdao Port

​International container transportation and logistics company Orient Overseas Container Line (OOCL) on Friday (3 July) said its first methanol dual-fuel containership, OOCL Wisdom, completed its first green methanol bunkering and commenced its maiden voyage at Qingdao Port.

OOCL Wisdom is the first in a series of seven methanol dual-fuel container vessels. With a maximum capacity of 24,168 TEU, it is currently the world’s largest methanol dual‑fuel container vessel and is deployed on the Asia – North Europe Loop 1 (LL1) service.

Mr. Peter Pan, Director of Trades of OOCL, said: “OOCL Wisdom completed its first green methanol bunkering and commenced its maiden voyage to Europe at Qingdao Port, representing a significant achievement of the deepening collaboration between OOCL and Shandong Port Group, and reflecting OOCL’s steadfast commitment to green and low‑carbon development, digital intelligence and sustainability.”

 

Photo credit: Orient Overseas Container Line
Published: 6 July, 2026

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