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:

Collaboration is a key driver to lowering maritime carbon emissions and transitioning the industry towards net zero. 

More shipping lines are lending their weight to decarbonization efforts, both the biggest and best known names and the smaller players that make up the bulk of the industry.

New vessel launches are underscoring the growing share of the fleet powered by methanol, and bunkering activity is increasing at the same time. 

Shipowners are going further in seeking collaboration with methanol producers and maritime centres of excellence to secure their clean fuel supply chain and promote training and awareness around the maritime energy transition.

Methanol marine fuel related developments for Week 48 of 2024:

MOL and Singapore MPA Collaborate on Decarbonization, Digitalization, and Maritime Training

Date: November 27, 2024

Key Points:

Mitsui O.S.K. Lines (MOL) has entered into a partnership with the Maritime and Port Authority of Singapore (MPA) to enhance collaboration in decarbonization, digitalization, and human resource development within the maritime industry. The agreement builds on existing decarbonization initiatives and extends cooperation to address broader maritime challenges.

Key areas of the partnership include establishing a supply system for next-generation fuels like methanol, ammonia, and hydrogen, and conducting research on wind propulsion technologies. This initiative aims to support Singapore’s role as a sustainable maritime hub and foster innovation in green shipping technologies.

Takeshi Hashimoto, CEO of MOL, highlighted the importance of this collaboration in tackling critical industry challenges, emphasizing the shared vision for sustainability. MPA’s commitment to creating a forward-looking maritime industry aligns with MOL’s strategies to advance decarbonization and digital transformation. The partnership is poised to drive impactful solutions, benefiting the global shipping industry and supporting Singapore’s maritime leadership.

Hapag-Lloyd Secures 250,000 MT Annual Green Methanol Supply with Goldwind

Date: November 28, 2024

Key Points:

Hapag-Lloyd has entered into a long-term agreement with Beijing-based clean energy firm Goldwind to procure 250,000 metric tons of green methanol annually. This supply will consist of a blend of bio-methanol and e-methanol, aiming to reduce greenhouse gas emissions by at least 70% compared to conventional fuels.

Goldwind plans to construct a new green methanol production facility in Hinggan League, China, expected to be operational by late 2027. However, Hapag-Lloyd anticipates receiving initial volumes of green methanol as early as 2026.

This agreement aligns with Hapag-Lloyd’s Strategy 2030, which includes a commitment to the Paris Agreement’s 1.5-degree target and significant investments in sustainable operations. The secured green methanol supply is projected to reduce the company’s fleet emissions by up to 400,000 metric tons of CO₂e annually.

In support of this transition, Hapag-Lloyd is collaborating with Seaspan to retrofit five 10,100 TEU container ships with dual-fuel methanol propulsion systems, scheduled for conversion in 2026. 

COSCO Shipping Partners to Build Green Methanol Plant in Southeast Asia

Date: November 21, 2024

Key Points:

COSCO Shipping has signed a memorandum of understanding (MoU) with CP Group and Freepoint Commodities to collaborate on advancing green methanol production and utilization. The agreement focuses on constructing a green methanol production facility in Southeast Asia, leveraging regional biomass resources. The plant will adhere to stringent EU standards, ensuring high-quality and sustainable output.

This partnership underscores a shared commitment to decarbonizing the global shipping industry and fostering low-carbon solutions. COSCO highlighted the MoU as a testament to global cooperation in advancing environmentally friendly shipping practices and establishing benchmarks for green fuel innovation. 

Tsuneishi Shipbuilding Launches World’s First Methanol-Fueled Ultramax Bulker

Date: November 28, 2024

Key Points:

Japan’s Tsuneishi Shipbuilding has launched the world’s first methanol-fueled Ultramax dry bulk carrier, a 65,700 DWT vessel designed to support the company’s decarbonization goals. The vessel, equipped with dual-fuel capabilities, was officially launched on November 22, 2024, and boasts a cargo capacity of 81,500 m³.

The milestone vessel was developed in alignment with Tsuneishi’s “Technology Development Roadmap,” part of the company’s medium-term strategy to achieve carbon neutrality. The ship features advanced methanol fuel tank technology derived from in-house expertise in manufacturing pressure tanks for LPG carriers and LNG fuel tanks.

Masatoshi Date, the factory manager, emphasized Tsuneishi’s commitment to scaling production of methanol-fueled vessels by collaborating with group companies and leveraging overseas factories. The shipyard plans to expand its dual-fuel technology deployment, furthering its role in shaping a sustainable future for the shipping industry. 

Maersk Unveils Methanol-Fueled Boxship A.P. Møller in Singapore Ceremony

Date: November 28, 2024

Key Points:

AP Moller-Maersk has named its latest methanol-fueled container vessel, A.P. Møller, during a ceremony in Singapore on November 28, 2024. The dual-fuel ship, named after the company’s founder, Arnold Peter Møller, is the newest addition to Maersk’s fleet designed to operate on methanol, reinforcing the company’s decarbonization strategy.

Ditlev Ingemann Blicher, President of Asia Pacific at Maersk, emphasized the significance of this launch in Singapore, a central hub in Maersk’s Asia-Pacific operations. The vessel highlights Maersk’s commitment to sustainable shipping and its leadership in adopting alternative fuels to meet global decarbonization goals.

Maersk has been a pioneer in integrating methanol-powered vessels into its operations, with several such ships already in service and more under construction. The launch of A.P. Møller signifies another milestone in the company’s transition to greener maritime operations.

Pacific Basin Shipping Orders Four Methanol-Fueled Bulk Carriers to Expand Green Fleet

Date: November 29, 2024

Key Points:

Pacific Basin Shipping has placed an order for four dual-fuel methanol bulk carriers with Nihon Shipyard Co in Japan. These 64,000 DWT Ultramax vessels, capable of operating on methanol, biodiesel, or conventional fuel oil, are scheduled for delivery in 2028 and 2029.

The company emphasized that this order is a significant step in its journey toward achieving net-zero emissions by 2050. The ships are designed to comply with upcoming regulatory requirements, including FuelEU Maritime rules and anticipated IMO mandates on sustainable fuels.

Additionally, Pacific Basin has signed a memorandum of understanding (MoU) with Mitsui & Co to secure a supply of green methanol for its fleet, ensuring readiness to meet future decarbonization goals. 

Port of Tanjung Pelepas Completes Inaugural Methanol Bunkering Operation

Date: November 29, 2024

Key Points:

The Port of Tanjung Pelepas (PTP), a joint venture between MMC Group and APM Terminals, has successfully conducted its first methanol bunkering operation by refueling the Antonia Maersk, a dual-fuel container vessel capable of operating on methanol. This vessel is the third in a series of 18 large dual-fuel newbuilds commissioned by the Danish shipping company Maersk.

This operation marks PTP’s inaugural ship-to-containership methanol bunkering, underscoring the port’s readiness to handle alternative marine fuels. PTP’s Chairman, Tan Sri Che Khalib Mohamad Noh, noted that this achievement is pivotal in delivering top-quality services and solidifying PTP’s position as a preferred regional port.

In preparation for this operation, PTP collaborated closely with Maersk, Maersk Oil Trading, the Malaysia Marine Department, Johor Port Authority, and various government agencies. 

The partners conducted tabletop exercises and workshops to establish rigorous safety procedures through comprehensive operational and risk assessments, modeling, and validation. PTP’s CEO, Mark Hardiman, highlighted that this collaboration sets a promising standard for future partnerships in infrastructure development, fuel bunkering capabilities, and knowledge sharing.

Photo credit: Methanol Institute
Published: 5 December, 2024