Methanol

New MI study: EU regulations will create level playing field for methanol bunker fuel

Paper by Dr Jeroen Dierick concludes FuelEU Maritime and ETS will progressively incentivise adoption of renewable fuels, enhancing the business case for bio- and e-methanol.

Published

7 months ago

September 27, 2024

Admin

A new White Paper released on Wednesday (25 September) concluded that the FuelEU Maritime Regulation and EU Emissions Trading System (ETS) will create a level playing field for bio- and e-methanol, making them economically competitive compared to fossil marine fuels.

The paper, titled Economic value of methanol for shipping under FuelEU Maritime and EU ETS, was prepared for the Methanol Institute by Dr Jeroen Dierickx, an energy and fuel expert at iDefossilise.

Under the EU’s Fit for 55 regulatory package, vessel operators are incentivized to transition to these sustainable fuels through significant penalties levied on continued fossil fuel use. For fuel producers, the regulations offer a stable, long-term framework from 2024 to 2050, paving the way for secure investment opportunities in the maritime sector.

Gregory Dolan, CEO of the Methanol Institute, stated: “The study confirms the profound impact of regulations on the demand for methanol as a marine fuel.”

“The findings indicate that the emerging EU regulatory framework is robust enough to enhance the business case for low-carbon and renewable methanol fuels and fuel blends, supporting the transition to a sustainable maritime industry.’’

Key findings of the study:

Regulatory penalties and costs: The FuelEU Maritime Regulation sets targets for reducing greenhouse gas emissions from the maritime sector and imposes increasingly severe penalties on fossil fuels such as Very Low Sulfur Fuel Oil (VLSFO). Non-compliance costs for vessel owners will escalate from EUR 39 per tonne in 2025 to EUR 1,997 per tonne by 2050.
EU ETS implementation: Regulatory costs under the EU ETS carbon emission trading scheme that also covers the maritime sector, are phased in from 40% in 2024 to 100% in 2026. With a projected market price of EUR 100 for CO2 emission allowances, the additional cost for VLSFO is estimated at EUR 321 per tonne.
Compliance options: To avoid these penalties, vessel owners can use bio- or e-methanol, or blends of fossil and sustainable methanol as viable compliance options and encourage the development of a sustainable methanol supply chain.
Price estimates: The analysis forecasts the average maximum price for bio-methanol to be EUR 1,193 per tonne from 2025-2050. For e-methanol, prices are estimated at EUR 2,238 per tonne from 2025-2033, decreasing to EUR 1,325 per tonne from 2034-2050 when the reward factor for using renewable fuels of non-biological origin (RFNBO) expires in 2034. Including EU ETS costs, these prices rise by EUR 150 per tonne for both fuels.
Fuel blends: Every five years, the FuelEU Maritime greenhouse gas emission targets increase, from 2% in 2025 to 80% by 2050. These targets can be met by blending bio- or e-methanol with conventional natural-gas based methanol, increasing from 14% bio-methanol and 7% e-methanol in 2025 to 28% bio-methanol and 25% e-methanol in 2035, and fully 100% bio-methanol and 91% e-methanol by 2050.
Economic viability: Both bio- and e-methanol show significant economic potential under the new regulations. The FuelEU Maritime Regulation and EU ETS are expected to effectively promote the adoption of these sustainable fuels in maritime shipping.

MI said the study marked an important milestone for the maritime sector, providing a clear pathway for companies to align with regulatory frameworks while transitioning to sustainable fuel options.

“It further provides an investment timeline for producers to align production of conventional and renewable methanol with projected demand,” it added.

Note: Download the full study from here.

Photo credit: Methanol Institute
Published: 27 September, 2024

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Methanol

Ofiniti to roll out e-BDNs for Golden Island methanol bunkering operations in Singapore

Ofiniti will issue electronic Bunker Delivery Notes, based on the recently published Technical Reference 129 on Methanol Bunkering, across Golden Island’s newbuilds and part of its existing fleet.

Published

23 hours ago

April 29, 2025

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Ofiniti to roll out e-BDNs for Golden Island methanol bunkering operations in Singapore

Ofiniti, a provider of digital solutions for maritime bunker operations, on Tuesday (29 April) said Singapore bunker supplier Golden Island Pte Ltd will adopt Ofiniti platforms for its expanding fleet operations.

Ofiniti said the move will lay the foundation for a digital multi-fuel future with Golden Island’s four new chemical tankers on order and Singapore-flagged bunker tanker Golden Antares, which will soon enter service.

As part of the transition, Ofiniti will roll out electronic Bunker Delivery Notes (e-BDNs), based on the recently published Technical Reference (TR) 129 on Methanol Bunkering, across Golden Island’s newbuilds and part of its existing fleet.

The Maritime and Port Authority of Singapore (MPA) and Enterprise Singapore (EnterpriseSG), through the Singapore Standards Council (SSC), on 10 March published TR 129 to provide a comprehensive framework for the safe and efficient use of methanol as an alternative fuel for bunkering operations.

Kenny Yap Song Jin, Low Carbon Solutions, Golden Island, said: “Launching our methanol bunkering operations is a major milestone, not just for Golden Island, but for Singapore’s journey toward multi-fuel readiness.

“By combining innovative low-carbon fuels with digital transparency, we set a new benchmark for safe, efficient, and sustainable marine fuel delivery.”

Ofiniti said it has supported suppliers through every stage of the industry’s transition, from conventional fuels to LNG, biofuels, hydrogen, and now, supporting methanol.

Tue Nielsen, Chief Executive Officer, Ofiniti, said: “I’m proud to welcome Golden Island to Ofiniti’s platforms.

“Their move signals a strong trust in our ability to support next-generation operations, and it reflects a broader shift in the market towards digital solutions built specifically for the realities of maritime fuels today and tomorrow.

“We are customer-obsessed, always trying to build in resilience to the way we are doing business.”

Manifold Times previously reported Golden Island’s plans to start bunkering trials of green methanol with its newbuild Singapore-flagged 7,999 dwt IMO type 2 bunker tanker from July.

Golden Antares was scheduled to depart a Chinese shipyard by late April and will lift green methanol produced by Hong Kong and China Gas Company Limited (Towngas) before returning to Singapore to begin bunkering trials.

In April, Ofiniti welcomed bunkering and marine fuel solutions provider Global Fuel Supply (GFS) to its FuelBoss platform as one of its newest customers.

GFS said it was proud to be the first physical supplier in West Africa to launch fully digitalised bunker operations with electronic bunker delivery note (e-BDN) via the FuelBoss platform.

Photo credit: Ofiniti
Published: 29 April, 2025

Newbuilding

Wan Hai Lines orders four methanol-ready boxships for USD 816 million

Wan Hai Lines, on behalf of Wan Hai Lines (Singapore), announced it has placed an order for four more 16,000 TEU container vessels from South Korea shipbuilders HD Hyundai Samho and Samsung Heavy Industries.

Published

23 hours ago

April 29, 2025

Admin

KPI OceanConnect facilitates Wan Hai Lines on its first biofuel delivery in Singapore

Taiwanese operator Wan Hai Lines, on behalf of Wan Hai Lines (Singapore) Pte Ltd, on Thursday (24 April) announced it has placed an order for four more methanol-ready container vessels from two South Korean shipbuilding companies.

According to the company’s stock exchange filings, HD Hyundai Samho, part of HD Hyundai Group, and Samsung Heavy Industries will each build two 16,000 TEU capacity container vessels.

The newbuilding deals amount to a combined value of up to USD 816 million with Wan Hai Lines spending between USD 186.5 million and USD 204 million per unit for the boxships at HD Hyundai, and between USD 187.6 million to USD 204 million for the ones at SHI.

Last year, Wan Hai Lines placed an order with the same South Korean shipbuilders to construct four methanol-fuelled vessels each of the same capacity as the latest order.

Photo credit: Wan Hai Lines
Published: 29 April, 2025

Shipping Corridor

SFOC report proposes green methanol-fuelled Korea-Europe shipping corridor

Corridor will run between Pyeongtaek Port—the largest hub for automobile imports and exports in South Korea—and major European ports of Bremerhaven, Antwerp, Zeebrugge, and Southampton.

Published

5 days ago

April 25, 2025

Admin

SFOC report proposes green methanol-fuelled Korea-Europe green shipping corridor

Korean non-government organisation Solutions for Our Climate (SFOC) on Wednesday (23 April) released a report proposing the establishment of a green methanol-fuelled South Korea-Europe shipping corridor.

The proposed corridor will run between Pyeongtaek Port—the largest hub for automobile imports and exports in South Korea—and major European ports of Bremerhaven, Antwerp, Zeebrugge, and Southampton, presenting strategic pathways for the decarbonization of the maritime sector.

South Korea has announced its “Greenship-K Program” to accelerate the adoption of eco-friendly vessels and set a national goal to achieve a 100% reduction in greenhouse gas (GHG) emissions from shipping by 2050.

Focusing on a green methanol-fuelled Pure Car and Truck Carrier (PCTC) operation model, the report quantitatively assessed the potential for greenhouse gas reduction along key routes. Notably, the Bremerhaven–Pyeongtaek route alone is estimated to reduce more than 1.4 million tonnes of CO₂ emissions annually, given its high cargo volume.

The report proposed the adoption of green methanol as the primary fuel for the corridor, with a long-term goal to transition toward e-methanol. This shift is expected to reduce CO₂ emissions by more than 70% compared to conventional fossil fuel use.

Beyond fuel switching, the report emphasised the importance of securing a stable green fuel supply chain, establishing supportive legal and institutional frameworks, and fostering close public-private cooperation among shipping companies, cargo owners, port operators, and fuel suppliers to make the corridor a viable reality.

“With these foundational elements in place, Pyeongtaek Port is well positioned to become the starting point of Korea’s transition toward a decarbonised maritime sector,” SFOC said.

Note: The full report by SFOC can be viewed here and it is also available in Korean here.

Photo credit: Solutions for Our Climate
Published: 25 April, 2025