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:

At a time when the industry conversation around alternative fuels is focussing on supply of renewables and the need for long term agreements to cover their consumption, this week saw agreements for production, offtake, training and last mile delivery all make significant progress.

Demand from shippers and shipowners is also set to grow, with leading retailers inviting carriers to bid on contracts for low emission transport and leading container lines considering further orders for methanol-powered containerships.

Methanol marine fuel related developments for Week 46 of 2024:

Peninsula Expands Fleet with Advanced Tankers to Support Conventional and Alternative Fuel Supply

Date: November 12, 2024

Key Points:

Leading marine fuel supplier Peninsula, has announced plans to enhance its fleet by ordering up to 10 new 7,700 DWT IMO II chemical tankers through its subsidiary, Hercules Tanker Management (HTM). The initial order includes six vessels from Jiangmen Hangtong shipyard in China, with an option for four additional ships to be confirmed later this year. These ‘ultra-spec’ tankers, designed to supply up to 100% biofuel and various forms of methanol, feature diesel-electric and battery-ready power propulsion. Enhanced hull and propeller designs are expected to reduce emissions by approximately 20% compared to older vessels. 

Seafarer Training Overhaul Planned for Transition to Methanol and Other Green Fuels

Date: November 12, 2024

Key Points:

The Maritime Just Transition Task Force (MJTTF) and Lloyd’s Register’s Maritime Decarbonisation Hub and the UN Global Compact’s Ocean Stewardship Coalition, have developed a comprehensive training framework to prepare seafarers for the use of green fuels like methanol, ammonia, and hydrogen. This initiative follows extensive workshops involving over 100 stakeholders to identify the unique requirements and opportunities these fuels present.

The framework focuses on equipping seafarers with advanced skills and knowledge to manage the innovative technologies and processes associated with green fuels, including updated fire detection systems, enhanced safety equipment protocols, and effective emergency response strategies.

A key tool, the Instructor Handbook, will be introduced by the World Maritime University in May 2025, supported by the IMO and LRF. This effort underscores the industry’s proactive approach to ensuring seafarers are well-prepared for the transition to zero-emission fuels, fostering both safety and operational excellence.

Amazon and IKEA Drive Demand for E-Methanol Through Zero-Emission Shipping Initiative

Date: November 13, 2024

Key Points:

Amazon and IKEA, alongside 36 other major companies, have joined the Zero Emissions Maritime Buyers Alliance (ZEMBA) to promote the adoption of near-zero-emission fuels like e-methanol in ocean freight. In January, the alliance will invite shipping firms to bid on contracts for transporting cargo using vessels powered by e-fuels. These three- to five-year contracts are expected to begin in 2027.

The initiative is designed to create demand for renewable e-fuels, combining members’ purchasing power to drive innovation and reduce costs over time. The first contracts are projected to transport approximately 1.4 million TEU from Shanghai to Los Angeles, potentially abating 470,000 metric tons of greenhouse gas emissions.

Key shipping companies, including Maersk and Evergreen, have already ordered methanol-capable ships, signaling industry momentum. ZEMBA’s efforts align with anticipated global regulations, including phased GHG intensity reductions and a carbon pricing mechanism, which aim to incentivize zero-emission fuel adoption. This collective action underscores a critical step toward achieving net-zero emissions in ocean shipping by 2050.

Emvolon Secures Green Methanol Offtake Agreements with Oberon Fuels and SAFE Bulkers

Date: November 14, 2024

Key Points:

Emvolon, an MIT spin-off specialising in converting biogas into methanol, has signed two significant offtake agreements to supply green methanol. The first agreement is a five-year contract with Oberon Fuels, a company focused on renewable dimethyl ether (DME) and methanol production. The second agreement involves supplying green methanol to two vessels operated by SAFE Bulkers, a shipping firm integrating alternative fuels into its fleet.

These agreements follow Emvolon’s recent field pilot with Montauk Renewables, highlighting the company’s progress in commercialising its proprietary technology for sustainable methanol production.

Additionally, shipping company Dorian LPG has invested in Emvolon, further supporting its development efforts. Emvolon’s technology addresses methane emissions from sources like landfills and farms by converting them into valuable green methanol, contributing to environmental sustainability and resource utilisation.

Evergreen Considers 11 Methanol-Fuelled Megamax Boxships to Expand Green Fleet

Date: November 14, 2024

Key Points:

Taiwanese shipping giant Evergreen Marine is evaluating an order for 11 methanol-capable Megamax container ships, each with a capacity of 24,000 TEU. The company has approached six shipbuilders to submit proposals for the vessels, which are estimated to cost between $250 million and $265 million each.

Delivery is projected between 2028 and 2029. This potential order would complement Evergreen’s existing fleet of 23 conventionally fueled Megamax ships and its current orderbook of 24 methanol-powered vessels exceeding 16,000 TEU. 

Caterpillar Marine Achieves Milestone with DNV Approval for Methanol-Ready Dual-Fuel Engines

Date: November 15, 2024

Key Points:

Caterpillar Marine has received Approval in Principle (AiP) from DNV for its Cat® 3500E methanol-ready dual-fuel marine engines, marking a significant development in alternative marine fuel technologies. These engines, available in 12- and 16-cylinder configurations, support methanol as a primary fuel and can reduce greenhouse gas emissions across maritime segments, particularly high-load vessels like tugs. Caterpillar offers both methanol-ready new engines and retrofit kits for existing 3500E engines.

Photo credit: Methanol Institute
Published: 22 November, 2024