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.

Related: Korea: Taebaek City and PLAGEN to build green methanol bunker fuel plant
Related: Korean firm PLAGEN plans green methanol production project for bunkering

Photo credit: PLAGEN
Published: 2 December, 2024

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. 

Photo credits: GENA Solutions
Published: 2 December, 2024

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