The Methanol Institute provides an exclusive weekly commentary on developments related to the adoption of methanol as a bunker fuel, including significant related events recorded during the week, for the readers of bunkering publication Manifold Times:
Orders for Methanol dual-fueled ships continued to grow at a rapid pace during April with data from DNV’s Alternative Fuels Insight platform showing a significant uptick in contracts – significantly from the tanker segment, which has lagged in the adoption of alternative fuels until now.
Of the total of 23 alternative-fueled vessels placed in April Methanol, dominated with 12 orders. Other notable contracts include options exercise by car carrier giant Wallenius Wilhelmsen bringing its order for 9,300-CEU PCTCs from Jingling Shipyard to eight.
These vessels are equipped with advanced two-stroke, methanol dual-fuel engines, marking a significant step towards emission-free services targeted for 2027.
Methanol marine fuel related developments for Week 18 of 2024:
Methanol Engine Demand Surges in Auto Carrier Sector
Date: April 29, 2024
Key Points: Recent developments in the car carrier sector were dominated by news that Wallenius Wilhelmsen would exercise options to increase its order to eight 9,300-CEU PCTCs from Jingling Shipyard.
Placing its initial order in 2023, Wallenius Wilhelmsen executive vice president and chief operating officer, Xavier Leroi, said he views the newbuilds as a means to provide a net-zero, emission-free service by 2027: “We believe that methanol is the fastest way to net-zero emissions.”
The ships will be equipped with advanced two-stroke, methanol dual-fuel engines, marking a significant step towards emission-free services targeted for 2027.
MAN Energy Solutions (MAN ES) two-stroke business head, Bjarne Foldager, fully expects “methanol to figure prominently as a future fuel across vehicle carriers and, indeed eventually, all vessel segments.”
Swedish Facility Set to Produce 55,000 Metric Tons of Synthetic Methanol Annually for Bunkering
Date: April 30, 2024
Key Points: A new facility in Sweden, spearheaded by Carbon Clean in collaboration with Ørsted’s FlagshipONE project, is on track to produce up to 55,000 metric tons per year of synthetic methanol specifically for the shipping industry by 2025. The structural steel for the plant has been erected, with equipment being manufactured at the Schwartz Hautmont facility in Tarragona. Aniruddha Sharma, CEO of Carbon Clean, emphasized the significance of this milestone in advancing the eFuel project and highlighted the essential role of carbon capture technology in decarbonizing sectors like shipping, while also boosting economic development through local supply chains.
MI Among 75 Signatories of Turin Joint Statement for Sustainable Biofuels
Date: May 1, 2024
Key Points: The Turin Joint Statement on Sustainable Biofuels, endorsed by over 75 industry leaders, trade associations, and R&D organizations, emphasizes the crucial role of sustainable biofuels in decarbonizing all transport sectors. Presented at the G7 Climate, Energy, and Environment Ministers’ Meeting in Turin on April 29, 2024, the statement underlines the need for G7 nations to accelerate the deployment of sustainable biofuels to align with a net-zero trajectory by mid-century.
Key discussions were part of the International Forum on Sustainable Biofuels, which highlighted the potential of sustainable biofuels to enhance energy security, integrate into existing logistics, and support circular economy practices.
Italy’s Minister of the Environment and Energy Security, Gilberto Pichetto, stressed the importance of sustainable biofuels alongside other clean energy technologies to achieve the transport sector’s decarbonization. Liana Gouta of Fuels Europe advocated for a comprehensive strategy to stimulate private investment in sustainable biofuels, viewing them as a pillar alongside electrification and energy efficiency for reducing transport emissions.
DNV Reports Methanol-Fueled Ship Orders Surpass LNG in April
Date: May 3, 2024
Key Points: April’s data from DNV’s Alternative Fuels Insight (AFI) platform indicates a significant uptake in orders for alternative fueled vessels, with a total of 23 new orders. Methanol-fueled ships dominated, totaling 12 orders, surpassing LNG, which saw seven new orders.
Notably, all methanol ship orders originated from the tanker segment, traditionally slow to adopt alternative fuels. The data also included four new orders for ammonia-fueled vessels. This surge in alternative fuel orders reflects a broader trend of increasing preference for such technologies in the maritime industry.
In total, the first four months of 2024 recorded 93 new vessel orders in the AFI database, marking a 48% increase over the same period in 2023. Jason Stefanatos, DNV’s Global Decarbonization Director, emphasized the growth in tanker segment orders and the ongoing development of the maritime eco-system for ammonia as positive signs of the industry’s shift towards decarbonization.[2] [3]
Photo credit: The Methanol Institute
Published: 10 May 2024