Methanol Institute: ‘Plausible’ business opportunity, lower barriers to entry for methanol bunkering first movers
Discussions around the need to develop methanol bunkering operations are taking place at numerous ports ahead of estimated demand of above 7M mtpa by 2030, says Chris Chatterton of Methanol Institute.
Credible business opportunities are available for ‘first movers’ of methanol bunkering due to expected deliveries of methanol-fuelled vessels from 2024, states the Chief Operating Officer at Methanol Institute.
Front view of methanol bunkering pump room with vapour recovery tank – Stena Germanica
‘With a number of methanol dual-fuel vessels expected to come into service within the next 12 to 16 months, we are expecting physical bunkering opportunities of up to an estimated one million metric tonnes of methanol per annum,” Chris Chatterton told bunkering publication Manifold Times.
“However, currently, approved commercial facilities for methanol bunkering are limited at any of the major ports for any of these newbuilds to refuel.”
According to Chatterton, the lack of methanol bunkering capacity was partly due to methanol dual-fuel vessel owners not having announced where they would choose to safely bunker methanol and what specification of methanol (conventional, lower carbon, or carbon neutral).
The group is still deciding on where to source the material, how to ensure its efficient transportation into the declared port as a bunker fuel, and at a price which supports the business case for switching fuels – allowing them to remain competitive while reducing emissions.
Conventional methanol as a product, based on natural gas, which significantly reduces PM, SOx and NOx, in addition to lowering CO2 by up to 15%, is meanwhile widely available at over 100 international ports due to its legacy as a petrochemical feedstock.
“Sheer availability of methanol is extremely high. Unfortunately, ‘formally approved’ physical delivery mechanisms of methanol as a bunker fuel, with the exception of Rotterdam and Gothenburg ports, is presently very limited, but expected to change very soon,” he explained.
For example, the Stena Germannica which has been bunkered shore-to-ship since about 2015 without incident very recently began STS bunkering under operations by Methanex, the Port of Gothenburg and tanker operator E&S.
Many methanol, dual-fuel product carriers, such as those of Waterfront Shipping, have been involved with ship-to-ship transfers of methanol as a fuel for some time – since 2016; bunkering methanol in Ulsan, New Plymouth, Geismar, Trinidad, Punta Arenas, Houston, Rotterdam, Onsan and Taicang, to name a few. Proman has also begun bunkering their dual-fuel product carriers in a similar fashion.
“The expected demand is already there, based on the number of dual-fuel methanol vessels on order, so it’s really a situation of bunkering agents and vessel operators coming together to collaborate on how to secure and store methanol bunkers with an appropriate specification and safely transfer them,” he stated.
“The opportunity is out there.”
Methanol Institute, which serves as the trade association for the global methanol industry, estimates low barriers of entry for a bunkering firm to start methanol marine refuelling operations, compared to other alternative fuels.
Rear view of methanol bunkering pump room complete with low flash point, “fit for purpose” vapour and flame detection technology as well as circuit breakers – Stena Germanica
“Estimates to convert an 8,000 to 10,000 dwt bunkering vessel for methanol bunkering have been pegged at less than EUR 100,000 (USD 108,000),” highlighted Chatterton.
“It’s not as much of a financial commitment to get involved, at least in comparison to other, alternative fuels. Safe handling of methanol is well understood, as a liquid at ambient temperature, with formal training programs readily available.
“Most existing bunkering firms can compete in this market with some training, best practice transfer and minimal investment. After which, coordinating with the local port authority to allow for safe methanol bunkering and then following locally approved guidelines to ensure incident-free bunkering services is critical.”
Singapore-based bunker trading firm Sea Oil Petroleum Pte Ltd (Sea Oil), a wholly owned subsidiary of Thailand-listed Sea Oil Public Company Limited, has received International Sustainability and Carbon Certification (ISCC) EU certification, learned Manifold Times.
ISCC EU is a certification scheme that verifies compliance with the sustainability criteria for biofuels and bioliquids within the European Union. It ensures that biomass and biofuels used in the EU meet specific environmental and social requirements, including greenhouse gas emission reductions and traceability throughout the supply chain.
The milestone, which took place on 22 May after two months of processing, was reflective of the company’s aim to expand its bunker fuel product offerings to clients seeking sustainable solutions, Steve Goh, Head of Trading at Sea Oil, told the bunkering publication.
“It is important for the bunkering sector to remain relevant, adapt, and play an active role in supporting shipping’s decarbonisation journey,” said Mr Goh while adding that, “this is in line with our group’s green initiative and sustainability drive.”
“As such, Sea Oil seeks to do its part for climate change by giving options to support to our end users.
“By achieving ISCC EU certification, Sea Oil will be in a better position to provide green marine fuel solutions to customers embarking on this journey towards net zero.”
Manifold Timesin May reported Sea Oil welcoming a Senior Bunker Trader to its team.
The company started 2025 with an expanded team on both international and local fronts.
Wind propulsion solutions provider Anemoi Marine Technologies on Tuesday (8 July) officially opened its new Rotor Sail production facility in China.
Strategically located on the banks of the Yangtze River, Anemoi’s facility is located in Jingjiang City, Jiangsu Province, within Daming Heavy Industry’s manufacturing base.
The facility provides direct access to port infrastructure, enabling seamless logistics for import, export, and delivery.
With barge transport available on-site, Rotor Sails can be transported efficiently and installed directly at nearby major shipyards, streamlining operations and minimising environmental impact.
“This is more than just a new site,” said Clare Urmston, CEO of Anemoi.
“It’s a fully integrated, end-to-end production hub where every stage, from steel fabrication and precision assembly to rigorous testing and quality assurance, is handled under one roof.
“That means faster turnaround, uncompromised quality, and complete oversight by our expert team, on site, from start to finish. Anemoi’s strategy is quality first and this site enables exactly that.”
With an annual production capacity of 250 Rotor Sails, and the option to expand further and store units for fast turnaround, the new site positions Anemoi to meet surging global demand and support its customers in achieving critical decarbonisation goals.
Photo credit: Anemoi Marine Technologies
Published: 10 July 2025
Global Energy Storage Group (GES) on Wednesday (9 July) announced the completion of the sale of its terminal located in the Port of Rotterdam., marking its exit from the Dutch market.
The facility, which includes 212,000 m³ of tank storage and approximately 18 hectares of development land in the Europoort area, was sold to Tepsa, a European bulk liquid and gas storage operator.
The transaction represents a key milestone for GES as it continues to focus its resources on expanding its presence in the fast-growing Asian market, with particular emphasis on its strategic terminal at Port Klang, Malaysia.
It also ensures that the Rotterdam terminal is passed into the hands of a high-quality follow-on owner well positioned to take the asset forward. The transaction also delivers a strong return for GES’s shareholders.
“Part of the investment cycle is realising value from assets at the right time, and we’re confident this was the right moment for GES,” commented Peter Vucins, CEO of GES.
“We are now fully focused on growing our business in Asia, with Port Klang at the centre of that strategy. We extend our sincere thanks to the Rotterdam team and our customers for their support and for maintaining a safe, reliable, and forward-looking operation throughout our ownership.”
With the sale of the Rotterdam terminal, GES no longer holds assets in the Netherlands.
Photo credit: Global Energy Storage Group
Published: 10 July 2025