Methanol Institute: Potential demand for methanol bunker fuel reaches 17.1 million mt per annum
Current orderbooks show the top five orders for methanol dual fuel vessels coming from Maersk, CMA CGM, Evergreen, X-Press Feeders, COSCO Shipping and HMM, states Chris Chatterton.
The potential demand for methanol as a bunker fuel has currently risen to 17.1 million metric tonnes (mt) per annum, states the Chief Operating Officer of global methanol industry trade association Methanol Institute.
Chris Chatterton shared the observation with delegates at Session 3: Alternative fuels: Unlocking their potential to transform shipping of the APPEC 2023 conference on Wednesday (8 September) during his session Methanol: The near-term alternative fuel.
“Global demand and production for methanol in 2020 was 98 million mt and this figure is roughly calculated to reach around 500 million mt by 2050, according to a study by the International Renewable Energy Agency (IRENA),” said Chatterton.
“Broad sub-vertical markets across both chemicals and fuel applications for methanol results in shipowners being subjected to less price volatility, predictable supply, and consistent quality when choosing to use to material as a bunker fuel.
“Additionally, established trading hubs for methanol already mean the product is available for consumption as marine fuel at over 100 ports.”
To date, the 25 methanol-fuel vessels, mainly product/chemical carriers, operating globally will be joined by an additional 165 vessels on order at a future date, he said.
Current orderbooks show the top five orders for methanol dual fuel vessels coming from Maersk, CMA CGM, Evergreen, X-Press Feeders, COSCO Shipping and HMM – mostly purchasing containerships.
Moving forward, Chatterton expects a total of 1,200 methanol-fuelled vessels of various designs, including containerships, bulk carriers, chemical tankers, ferries, harbourcraft, dredgers, OSV, VLCCs, and car carriers, to be operating by 2030.
Chatterton in July told Manifold Times he expects a major portion of the methanol-fuelled fleet to be receiving fuel at the Port of Singapore.
Singapore’s bunkering sector, meanwhile, is gearing up to receive commercial methanol bunkering operations.
International laboratory testing services firm Eurofins has expanded operations to include surveying, sampling and testing packages for methanol bunker fuel within its product portfolio.
Consort Bunkers Pte Ltd has placed a newbuilding order for six 6,500 dwt IMO Type 2 bunker tankers capable of delivering a wide variety of conventional marine fuels including biofuel and methanol.
During Singapore Maritime Week (SMW 2023), classification society DNV joined a working group on methanol bunkering, managed by the Standards Development Organisation at Singapore Chemical Industry Council (SCIC-SDO).
Golden Island Diesel Oil Trading Pte Ltd, which has already finished the design phase for its methanol bunkering tanker, is planning to start bonded methanol bunkering operations at the republic in 2026.
In 2022, several players including PTT Exploration and Production Public Company Limited, Air Liquide, YTL PowerSeraya Pte. Limited, Oiltanking Asia Pacific Pte. Ltd., Kenoil Marine Services Pte Ltd, and A.P. Moller – Maersk A/S signed a Memorandum of Understanding to start a ‘Green Methanol Value Chain Collaboration’ feasibility study project.
Singapore: Bunker fuel sales down by 9.1% on year in January 2025
4.46 million mt of various marine fuel grades were delivered at the world’s largest bunkering port in January, a drop from 4.91 million mt recorded during the similar month in 2024, according to MPA data.
Sales of marine fuel at Singapore port decreased by 9.1% on year in January 2025, according to Maritime and Port Authority of Singapore (MPA) data.
In total, 4.46 million metric tonnes (mt) (exact 4,461,710 mt) of various marine fuel grades were delivered at the world’s largest bunkering port in January, a drop from 4.91 million mt (4,906,100 mt) recorded during the similar month in 2024.
Deliveries of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in January (against on year) recorded respectively 1.66 million mt (zero from 1.66 million mt), 2.43 million mt (-15% from 2.86 million mt), 900 (+100% from zero), 3,100 mt (-77% from 13,500 mt) and zero (from zero).
Bio-blended variants of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in January (against on year) recorded respectively 16,000 (+100% from zero), 92,000 mt (+103% from 45,300 mt), zero (from zero), zero (from zero) and zero (from zero).
LNG and methanol sales were posted respectively at 6,600 mt (-36.5% from 10,400) and zero (from zero).
A complete series of articles on Singapore bunker volumes by Manifold Times in 2024 can be found below:
India’s first bio-methanol bunker barge to be part of new bunkering facility project
Construction of the bunker barge is part of a MoU between Bapu’s Shipping Jamnagar and Deendayal Port Authority to develop a methanol bunkering facility at Kandla.
India’s shipping company Bapu’s Shipping Jamnagar on Sunday (9 February) announced it has signed a Memorandum of Understanding (MoU) with Deendayal Port Authority on 8 February to develop a methanol bunkering facility at Kandla.
The firm said the construction of India’s first bio-methanol bunker barge will be a key part of this initiative to cater to the growing requirement for sustainable maritime fuel.
“India’s first methanol bunker barge will be constructed at Deendayal Port, marking a significant step in accelerating green shipping and decarbonisation,” said Bhupendra Sinh Jadeja, Managing Director of Bapu’s Shipping.
“With global ports like Shanghai, Ulsan, Singapore, and Rotterdam advancing methanol bunkering, India is stepping up! Deendayal Port Authority has committed to providing necessary infrastructure support to fast-track the bunker supply chain.”
“We are honoured to be their channel partner in this transformative journey.”
Ammonia, methanol bunkering infrastructures among 39 projects to receive EU funding
Both projects aim to deploy a ship-to-ship bunkering system at the ports of Huelva and Algeciras respectively and include a 7500 m3 bunkering vessel each.
Editor's Note [12 February 2025] : Article updated on CEPSA
Two projects involving ammonia and methanol bunkering infrastructures in the ports of Huelva and Algeciras in Spain were among 39 projects to receive funding under the first cut-off deadline of 2024-2025 Alternative Fuels Infrastructure Facility (AFIF) of the Connecting Europe Facility (CEF), according to the European Commission recently.
The first ammonia bunkering infrastructure will be in Algecirasa as part of the Andalusian Green Hydrogen Valley. The project aims to deploy a ship-to-ship ammonia bunkering system in the port of Algeciras.
It includes a 7500 m3 ammonia bunkering vessel, an on-shore ship loading system and the piping infrastructure for the transport of ammonia from the production site to the loading dock.
Meanwhile, the first methanol bunkering infrastructure will be in Huelva, also as part of the Andalusian Green Hydrogen Valley. The project aims to deploy a ship-to-ship methanol bunkering system in the port of Algeciras.
It includes a 7500 m3 methanol bunkering vessel, an on shore ship loading system and the piping infrastructure for the transport of methanol from the production site to the loading dock.
The coordinator for both bunkering projects is Spanish bunker fuel supplier CEPSA, which has been renamed to Moeve in October last year.
The European Commission said the EU is allocating nearly EUR 422 million to the 39 projects that will deploy alternative fuels supply infrastructure along the trans-European transport network (TEN-T), contributing to decarbonisation.
With this selection, the AFIF will support other projects including approximately 2,500 electric recharging points for light-duty vehicles and 2,400 for heavy-duty vehicles along the European TEN-T road network, 35 hydrogen refuelling stations for cars, trucks and buses, the electrification of ground handling services in eight airports and the greening of nine ports.
Following EU Member States’ approval of the selected projects on 4 February, the European Commission will adopt the award decision in the coming months, after which the results will become definitive.
The European Climate, Infrastructure and Environment Executive Agency (CINEA) has started the preparation of the grant agreements with the beneficiaries of successful projects.
Note: The full list of successful projects can be viewed here.