Chris Chatterton, Chief Operating Officer of 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:

Newbuilding orders for methanol and ammonia-fuelled vessels continue to overtake placements for LNG-powered ships in February, records a recent DNV survey. This trend says it all for us at The Methanol Institute (MI), that the material is the future bunker fuel of choice chosen by the shipping sector.

Past week, we saw several events implying the above from several members. In Europe, the number of methanol bunkering ports soon be increased by six.

In Asia, two big firms namely HMM and SIPG have agreed to roll out methanol bunkering at Shanghai port. But that is not all happening over in the East; perhaps the mother of all methanol adoption activities took place in China where the world’s first methanol bunker fuel trading platform was created at the Lin-gang Special Area Administration.

Chinese renewable power equipment is considerably less costly, up to a factor of five times, that of North American or European renewable power equipment suppliers. This means China has some very real competitive advantage over production costs for green hydrogen and hydrogen derivatives such as ammonia and methanol.

Considerable “renewable power coupling” (solar and wind) is taking place in China, which extends the efficiency and capacity factors for Chinese e-fuels, ensuring high level of competitiveness.

China’s strong G2G and policy support for “technology neutral” support, renewable power buildup and CCU technology allow it to secure strong, international trading partners, across the value chain.

Two-thirds, or approximately 5 million mtpa, of all global carbon neutral methanol coming online in 2025 will be from China.

Methanol marine fuel related developments for Week 14 of 2024:

X-Press Feeders Signs Green Shipping Corridor Agreements With Six European Ports

Date: April 5, 2024

Key points: X-Press Feeders has entered into agreements with six European ports (Antwerp-Bruges, Tallinn, Helsinki, HaminaKotka, Riga, and Klaipeda) to enhance the infrastructure for alternative fuel provision, specifically green methanol. These agreements aim to develop the supply chains for low-emission fuels, offer training for handling these fuels, and use digital platforms to optimize port operations. This initiative underlines the shipping industry’s move towards renewable energy sources.

Methanol and Ammonia Both Outpaced LNG-Fuelled Ship Orders in March

Date: April 5, 2024

Key points: March witnessed a noteworthy trend in ship orders, with methanol and ammonia-fuelled ships outnumbering LNG-fuelled ones. Two ships ordered in March are to run on methanol, matching the number for ammonia, while only one order was placed for an LNG-fuelled ship. This development signals the shipping industry’s growing interest in alternative fuels, with methanol being a key focus. The first quarter of the year saw a significant increase in orders for ships capable of running on alternative fuels compared to the same period last year.

HMM and SIPG ink MoU for methanol and LNG bunkering in Shanghai Port

Date: April 4, 2024

Key Points: HMM, a Korea-based integrated logistics company, has signed a Memorandum of Understanding (MoU) with Shanghai International Port Group (SIPG) to collaborate on the supply of clean marine fuel, specifically focusing on methanol and LNG at Shanghai Port. HMM aims to achieve net-zero emissions by 2050 and is expanding its sustainable eco supply chain networks. The company has also signed contracts for methanol-powered vessels and plans to operate LNG-powered vessels by the end of the year.

“Ane Maersk” completes its first methanol bunkering op in European waters

Date: April 4, 2024

Key Points: The “Ane Maersk,” recognized as the world’s first large methanol-powered deep-sea vessel, completed its inaugural methanol bunkering operation in European waters at the Port of Antwerp-Bruges. The vessel was refueled with 4,300 metric tonnes of green methanol and 1,375 metric tonnes of biodiesel during its maiden voyage from South Korea to China. This marks a significant milestone in the port’s ambition to become a multi-fuel port, offering a variety of climate-neutral fuels.

Maersk’s Second Large Methanol-Fuelled Boxship Named

Date: April 4, 2024

Key points: AP Moller-Maersk named its second large container ship, Astrid Maersk, designed to operate on green methanol, in Yokohama. This vessel is part of Maersk’s initiative to transition to green energy in ocean transport, emphasizing the need for collaboration across the industry to achieve net-zero emissions.

China: Green Marine to develop world’s first methanol bunker fuel trading platform in Lin-gang

Date: April 4, 2024

Key Points: The Lin-gang Special Area Administration has partnered with Green Marine Group to create the world’s first methanol bunker fuel trading platform. This initiative aims to provide tools for managing price risks and promote physical transactions of green methanol. Additionally, the Green Marine Group will establish the first green methanol training and certification center in Lin-gang to support ship-to-ship methanol bunkering for international sailing ships.

Europe’s largest: Solar developer plans giant 800MW green hydrogen-to-methanol plant

Date: April 3, 2024

Key Points: Ansasol is set to construct an 800MW green hydrogen-to-methanol facility in southern Spain, targeting a production of one million tonnes of renewable methanol by 2029. The initial phase aims for 150,000 tonnes by 2027, scaling significantly by 2029. The project, notable for its scale in Europe, is under development without disclosed funding details or the methanol’s market. The carbon source’s nature for methanol synthesis could affect EU subsidy eligibility.

Photo credit: The Methanol Institute
Published: 11 April 2024