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

Methanol

Published Wed, 20th December 2023
by Admin

‘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.

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

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

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