Methanol

Methanol Institute: Methanol bunkering at Singapore port to become increasingly common from 2024

‘With clear policy moving forward, we expect there will both be a larger number of methanol-fuelled newbuilds and retrofits coming and more projects for methanol production of all specification,’ states Chris Chatterton.

Published

12 months ago

December 20, 2023

Admin

Recent milestones at the world’s largest bunkering port will likely lead to local methanol bunkering operations becoming increasingly commonplace in the coming year, forecasts the Chief Operating Officer of global methanol industry trade association Methanol Institute (MI).

The Maritime and Port Authority of Singapore (MPA) on 14 December issued an Expression of Interest (EOI) inviting parties interested in supplying methanol as a bunker fuel in the Port of Singapore to submit their proposals by the end of February 2024.

“We applaud MPA’s recent release on its methanol bunkering EOI and are ready to further support the port authority’s initiative to help the international shipping community decarbonise,” Chris Chatterton told bunkering publication Manifold Times.

Chatterton notes MI has been working closely with the Singapore branch of the International Bunker Industry Association (IBIA) and Singapore Polytechnic to educate the local maritime community on safe handling of the product.

Singapore’s transition towards methanol bunkering is supported by recent orders for methanol-capable bunker tankers from Singapore bunker suppliers; namely Equatorial Marine Fuel Management Services and Global Energy Trading.

Golden Island Diesel Oil Trading, which has finished the design phase for its methanol bunkering tanker, earlier told Manifold Times it will be starting bonded methanol bunkering operations at the republic in 2026.

Latest figures from DNV’s Alternative Fuels Insight (AFI) platform in October confirmed a total 230 methanol-powered vessels, mostly containerships, on order at yards.

Chatterton, who noted AFI figures not including an estimated 100 unannounced methanol vessel engine retrofit projects, was confident these vessels will be fuelled by 100% green (carbon neutral) methanol in time to come.

“We understand many shipowners are looking to source green methanol for the transition to carbon neutrality and understand the product is not readily available for mass market production yet,” he said.

“However, this is to be expected as green methanol is an emerging market. The shipping industry has spoken, and the methanol industry will deliver as huge demand is there.

“At MI, we see many projects being developed to product green methanol and we continue to stand behind our estimates of 8 million metric tonnes (mt) per annum of production by 2027 to support these vessels.

“With clear policy moving forward, we expect there will both be a larger number of methanol-fuelled newbuilds and retrofits coming and more projects for methanol production of all specification. Very likely, when green methanol comes into the market, players will be blending conventional methanol with green methanol to achieve compliance while remaining competitive.”

MI, which published the first comprehensive guide to methanol as a marine fuel, is meanwhile working closely with MPA on two green corridors; namely the Silk Alliance Singapore green corridor cluster initiative and the Rotterdam-Singapore Green & Digital Shipping Corridor, according to Desmond Loo, Business Development, Manager, MI.

“Recently, MPA signed a MOU with China’s Tianjin Municipal Transportation Commission to establish the Singapore – Tianjin Green and Digital Shipping Corridor,” adds Mr Loo.

“MI also plays an active role in China, the top producer and consumer of methanol in the world, and we are also looking forward to working with the stakeholders to introduce methanol bunkering the region.”

Photo credit: Methanol Institute
Published: 20 December 2023

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Methanol

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

Korean firm’s MoU with AE Risinājumi will see construction of Latvia’s first commercial-scale green methanol production plant, which will supply green methanol to ships in EU’s maritime fleet.

Published

12 hours ago

December 2, 2024

Admin

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

South Korean clean energy firm PLAGEN on Friday (29 November) signed an MOU with Latvian company, AE Risinājumi, for the production of green methanol in Latvia at the “2024 Latvia-Korea Business Forum” hosted by the President of Latvia.

The agreement will result in the construction of Latvia's first commercial-scale green methanol production plant, which will supply green methanol to ships in the EU's maritime fleet, contributing to the reduction of greenhouse gas emissions from maritime transportation.

PLAGEN's MoU aims to produce 20,000 metric tonnes (mt) of green methanol per year and will begin feasibility studies in the first half of 2025, and full-scale production will begin in 2028.

With 53% of Latvia's land area covered by forests, timber production and wood processing make a significant contribution to Latvia’s economic production, which generates a large amount of forest residues and wood wastes. In addition, Latvia also has an abundance and low price of renewable electricity from wind power.

Latvia is one of the most competitive countries in the European Union, as it can produce clean methanol at a competitive price by using abundant wood waste as a raw material and renewable electricity from cheap wind power.

The use of abundant forest residues and wood wastes as a feedstock and cheap renewable electricity from wind power makes it possible to produce green methanol with a competitive price, making Latvia is one of the most competitive countries in the EU.

In the European Union, the European Emissions Trading Scheme (EU-ETS) will come into effect in 2025, requiring shipping companies to purchase carbon credits for their greenhouse gas emissions.

In addition, the EU is implementing FuelEU Maritime, which aims to reduce greenhouse gas emissions by 2% below the 2020 average by 2025 and 80% by 2050. This is expected to result in an energy transition to green methanol.

In July 2023, the International Maritime Organization (IMO) adopted a revised strategy that calls for reducing greenhouse gas (GHG) emissions from ships to net-zero by or around 2050, and plans to introduce full-scale regulations from 2027, and shipping companies have begun ordering methanol-powered ships fueled by green methanol, a carbon-neutral fuel.

“We expect to start producing green methanol in Latvia in 2028, which will reduce greenhouse gas emissions from EU maritime transport vessels and contribute significantly to the revitalization of the Latvian economy and national energy security,” said John Kyung, CEO of PLAGEN.

In November 2024, PLAGEN completed the purchase of an industrial complex and received a government permit for the construction of the country's first green methanol plant in Dongjeom Industrial Complex in Taebaek City, Gangwon-do.

The project, which will produce 10,000 mt per year, is scheduled to begin construction in the first half of 2025 and begin production in the second half of 2027.

Photo credit: PLAGEN
Published: 2 December, 2024

Methanol

GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 38.6 to 39.9 Mt by 2030

Information shared by the Methanol Institute meant to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Published

12 hours ago

December 2, 2024

Admin

GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 38.6 to 39.9 Mt by 2030

The Methanol Institute recently shared with Manifold Times the renewable and low-carbon methanol project pipeline November 2024 release produced by Finland-based GENA Solutions Oy (Green Energy Analytics).

Information from the release is meant to provide the bunkering publication’s readers with insight on renewable methanol availability, and to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Key highlights of the November 2024 release are as follows:

The renewable methanol project pipeline increased from 30.5 Mt in October to 31.8 Mt in November (+1.3 Mt). The total renewable and low-carbon methanol project pipeline grew from 38.6 Mt to 39.9 Mt.
As of November 2024, GENA tracks 113 e-methanol plants and projects with total capacity of 18.7 Mt (+0.6 Mt), 77 biomethanol plants and projects with total capacity of 13.1 Mt (+0.7 Mt), and 14 low-carbon methanol plants and projects with total capacity of 8.1 Mt.
Eight projects were added in the November release: four in China, three in Europe and one in Africa. One project was excluded from the Project Navigator due to a change in the final product.
One e-methanol project has started construction in the last month. One small-scale e-methanol plant has started production. Currently, 2.6 Mt of renewable methanol facilities are either operational or under construction.
We estimate that renewable methanol capacity by 2030 could reach 7–14 Mt (22–44% of the project pipeline). However, a lack of long-term off-take agreements and insufficient state support may result in a lower capacity range of 3–7 Mt.

Renewable project pipeline

Renewable methanol by feedstock

Renewable methanol by region

Methanol projects status

Renewable methanol scenarios

Photo credits: GENA Solutions
Published: 2 December, 2024

Methanol

Malaysia: Port of Tanjung Pelepas achieves milestone with first methanol bunkering op

Successful operation demonstrates PTP’s readiness and capability to handle alternative marine fuels, paving the way for future trials and pilots, says Tan Sri Che Khalib Mohamad Noh.

Published

3 days ago

November 29, 2024

Admin

Malaysia: Port of Tanjung Pelepas achieves milestone with first methanol bunkering op

Port of Tanjung Pelepas (PTP), a joint venture between MMC Group and APM Terminals, recently successfully completed the first methanol bunkering operation for a Maersk dual-fuel methanol container vessel.

PTP did not disclose the bunkering vessel involved in the operation and the volume bunkered by Antonia Maersk.

The container vessel is the third in a series of 18 large dual-fuel newbuilds by the Danish shipping giant, capable of sailing on reduced emission methanol.

PTP’s Chairman, Tan Sri Che Khalib Mohamad Noh, highlighted that this milestone marks PTP’s first-ever ship-to-containership methanol bunkering operation.

“This step is pivotal in PTP’s mission to deliver top-quality services to our customers and solidify our position as a preferred port of choice in the region. This successful methanol bunkering operation demonstrates PTP’s readiness and capability to handle alternative marine fuels, paving the way for future trials and pilots of diverse and emerging fuel solutions,” he said.

PTP’s CEO, Mark Hardiman commended the collaboration among PTP, Maersk and the Malaysian Government, which sets a promising standard for future partnerships on infrastructure development, fuel bunkering capabilities and knowledge sharing.

“In preparation for this methanol bunkering operation, PTP worked closely with Maersk, Maersk Oil Trading, Malaysia Marine Department, Johor Port Authority, and various government agencies. Together, we conducted tabletop exercises and workshops, establishing rigorous safety procedures through comprehensive operational and risk assessments, modelling and validation; leading up to the deployment exercise.”

“This development underscores PTP’s dedication to safety and customer satisfaction, enabling us to offer shippers and consignees reliable, timely services through enhanced terminal efficiency and expanded capacity,” he said.

Photo credit: Port of Tanjung Pelepas
Published: 29 November, 2024