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SIBCON 2020: Methanex Corporation explains its case for methanol as a marine fuel in interview

Company sees growing interest from industry leaders such as Maersk and Stena in adopting methanol as a marine fuel and anticipates trend to grow stronger.
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The following article is part of event coverage for the upcoming Singapore International Bunkering Conference and Exhibition (SIBCON) 2020; where Manifold Times is an official media partner:

Methanex Corporation, a Canadian company that supplies, distributes and markets methanol worldwide, believes the product makes for a practical and flexible marine fuel that would benefit all shipping sectors and geographic locations.

Deepak Devendrappa, Director, Global Market Development at Methanex Corporation, recently shared his perspective of the case with Singapore bunkering publication Manifold Times in an interview below:

Overall, how has the global methanol industry changed in the past five years, and has this changed encouraged the adoption of methanol as a marine fuel?

  • The methanol industry has grown substantially over the last five years. We estimate that the methanol market was approximately 84 million tonnes at the end of 2019 compared to approximately 58 million tonnes at the end of 2014.
  • We continue to see energy demand growth, including marine fuel, driven by regulations for clean-burning fuels such as methanol. We expect that the implementation of the 2020 IMO regulations and 2050 goals will increase interest in methanol as a marine fuel.
  • Beyond the impact of COVID-19, we expect to see strong demand growth for methanol globally as a chemical building block, where growth is linked with GDP and industrial production levels, and in an increasing number of energy-related applications and as a clean-burning and economic alternative fuel.

What factors led to the decision of Waterfront Shipping/Methanex to order methanol carriers which are able to consume the product as a bunker fuel?

  • We continually keep abreast of all possible fuel options, but we know the benefits of methanol very well, and we believe it has advantages for the wider shipping industry and will continue to champion this technology as a wider industry solution.
  • Adopting methanol dual-fuel engine technology enables us to diversify our fuel options and operate cost-effectively regardless of market conditions. Dual fuel engines give us the choice of using the lowest cost fuel that meets regulations. Methanol, as a liquid fuel, is compatible with existing bunkering infrastructure which simplifies this dual-fuel approach.
  • When we look to the future, methanol is also future proof because it can be produced from renewable sources providing a pathway to compliance with future IMO emission regulations.

Do you foresee all future newbuilding orders from your company to feature vessels using methanol as a marine fuel?

  • Methanex’ subsidiary, Waterfront Shipping, has a fleet of 30+ vessels and has a constant renewal and expansion strategy.
  • It will have to continue to upgrade and grow its fleet to keep up with market demand and we believe that methanol, as a marine fuel option, is best suited for our future fleet.
  • At the end of 2019, Waterfront had eleven of the world’s first 2-stroke dual-fuel vessels representing ~40% of its fleet and we look forward to growing this.
  • We are excited by the performance of our methanol-fueled vessels with over 80,000 operating hours experience which has proved the safety and reliability of the technology.  We, along with our partners, will continue to invest in new and improved methanol-fueled vessels.

What are the technical differences and advantages of using methanol as a bunker fuel, when compared to traditional bunker fuels?

  • Methanol is a liquid marine fuel that is clean-burning, cost-effective, globally available, safe and technologically proven.
  • From an environmental perspective, methanol reduces the emissions of:
    • Sulphur oxides (SOx) by ~99%
    • Nitrogen oxides (NOx) by at least 60% and to Tier III NOx (>80%) standards through water injection;
    • Particulate matter by 95%;
    • Carbon dioxide (CO2) by up to 15% (on a combustion basis) compared to conventional marine fuels
    • Renewable and bio-methanol provide a pathway to reduce GHG emissions up to 95% over the lifecycle.
  • From a safety perspective, methanol has been shipped globally for over 100 years. It is biodegradable in water in the event of a spill and much more benign and cleaner than other marine fuels.
  • From a cost efficiency and availability perspective, the infrastructure for methanol already exists in most of the world’s major ports and is easier and significantly less costly to establish than infrastructure required for other alternative fuels, since it can be stored in unpressurized containers.
  • Methanol has remained cost-competitive with MGO over the past 10 years on an energy equivalent basis.
  • From a technology perspective, methanol is technologically proven as a marine fuel.

Currently, methanol is mostly being used as a fuel by methanol carriers. Apart from methanol carriers, which other vessel segments will be ideal candidates to use methanol as bunkers during the initial stage of adoption and why?

  • Methanol could be used by any ship segment and, as a liquid fuel, by using a dual-fuel engine, you can mix with conventional marine fuels (or biodiesels) to provide an even lower cost solution and deliver on practical requirements.
  • Methanol’s flexibility as a fuel is embraced by a range of adopters and advocates:
    • WFS – chemical tankers
    • Stena – passenger ferry
    • Maersk – containers
    • Fassmer – research vessels etc
    • Proman/Stena build – chemical tankers
  • The incremental cost to build new vessels to run on methanol is significantly less than alternative fuel conversions.
  • The differences between a standard vessel design and a methanol dual-fuel design are minimal and revolve around the add-on methanol components to the 2 stroke engine and the additional methanol fuel supply system.
  • Some industry segments may be more challenging due to methanol’s lower energy density than conventional fuels, but this is even more of a challenge for other alternatives such as ammonia or hydrogen with even lower density.

Moving forward to the next five years, do you see the use of methanol as marine fuel spreading to other sectors? Can you give some examples of this already happening?

  • As above, methanol is a practical and flexible fuel that would benefit all shipping sectors and geographic locations.
  • We see growing interest from industry leaders like Maersk, Stena etc. in adopting methanol as a marine fuel and we anticipate this trend to grow stronger over the coming years.

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Photo credit: Methanex Corporation
Published: 8 October, 2020

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Methanol

China: Stolthaven collaborates with ITOCHU Corporation for green methanol bunkering and export ops

Partnership will focus on development of a methanol bunkering system and enhancing methanol export capabilities.
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June 13, 2025

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Stolthaven Terminals, through its joint venture Tianjin Stolthaven Lingang Terminal (Stolthaven Lingang), on Thursday (12 June) said it has signed a Memorandum of Understanding (MoU) with Itochu Corporation to collaborate on storage and logistics solutions for green methanol.

This strategic partnership will focus on supporting the growing demand for low-carbon fuels through the development of a methanol bunkering system and enhancing methanol export capabilities.

Stolthaven Lingang has world-class terminal infrastructure and a strategic location in the Tianjin Lingang Industrial Zone in China. Through this MoU with Itochu, Stolthaven Lingang will seek to strengthen the supply chain infrastructure needed for alternative fuels.

Methanol is emerging as a viable marine fuel due to its lower carbon intensity and existing ease of handling, and the development of methanol bunkering services is expected to serve the increasing demand from the shipping sector.

Selenna Xu, general manager, Tianjin Stolthaven Lingang Terminal says: “This strategic partnership represents a pivotal step in building a green energy storage and transportation ecosystem in Northern China. By combining our terminal network and service innovation with Itochu’s global expertise, we aim to drive forward the development of a green energy hub for the region, with export capabilities beyond China.”

Satoshi Tojo, general manager at Itochu Corporation comments: “Itochu Corporation is committed to advancing the green methanol value chain through strategic partnerships and innovation. By leveraging our extensive global network and expertise in the energy and chemicals sectors, we are well-positioned to significantly contribute to the transition towards cleaner fuels.”

 

Photo credit: Stolthaven Terminals
Published: 13 June 2025

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Biofuel

LR: “Whitchampion” becomes first bunker tanker certified to load, carry and blend FAME B100 onboard

Second Whitaker tanker, Whitchallenger, will be undergoing a similar approval process and is expected to be certified later this year.
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June 13, 2025

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Classification society Lloyd’s Register (LR) on Thursday (12 June) claim UK-based bunker operator John H. Whitaker (Tankers) Limited’s bunker tanker Whitchampion has become the first in the industry to load, carry and blend Fatty Acid Methyl Esters (FAME B100) onboard under IBC Code and MARPOL Annex II regulations.

The development occurred after LR issued a chemical certification to allow Whitchampion to perform onboard blending of biofuels with petroleum distillates and residual fuel oils. The operation is authorised within UK coastal waters under a Tri-Partite Agreement between the Isle of Man Flag and the UK Maritime and Coastguard Agency (UKMCA).

A second Whitaker tanker, Whitchallenger, will be undergoing a similar approval process and is expected to be certified later this year.

At present, bunker tankers certified under MARPOL Annex I are limited to carrying blends no more than 30% FAME under IMO regulations. Oil Fuels with higher bio-content fall under International Bulk Chemical Code (IBC Code) and MARPOL Annex II, typically requiring full chemical tanker status. That regulation has, in effect, frozen out a significant portion of the conventional bunker tanker fleet from supporting mid-to-high-range biofuel blending.

Whitaker’s Whitchampion is the first LR-classed vessel to bridge that gap. Through comprehensive Gap Analysis and Risk Assessment against the IBC Code and MARPOL Annex II requirements, LR developed an approach which involved mitigation of the assessed risks. This led to obtaining waivers/exemptions from the Flag Administration allowing this Annex I bunker tanker to gain chemical certification to carry FAME as cargo, without needing to convert to full chemical tanker status.

The successful delivery of dedicated onboard training on the safe handling of FAME has also led to UKMCA approval and a FAME Restricted endorsement to the existing Oil Tanker Dangerous Cargo Endorsement (DCE) for the crew.

Tim Wilson, Principal Specialist Fuels and Emissions, LR, said: “This certification demonstrates a credible and commercially viable route for existing bunker tankers to participate in the energy transition. It sets a clear blueprint for others to follow, enabling owners to consider the possibility of adapting existing bunker tankers for sustainable fuel delivery without resorting to prohibitively expensive conversions or replacement with a chemical tanker.”

Peter Howard, Technical Director at Whitaker Tankers, added: “This certification is the result of focused determination from all involved and underlines Whitaker’s commitment to providing clients with the flexibility they need to meet their decarbonisation goals. We’re proud to lead the way in this space with Whitchampion and look forward to progressing a similar certification with LR for her sister ship Whitchallenger later this year.”

 

Photo credit: Lloyd’s Register
Published: 13 June 2025

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Alternative Fuels

China’s SDARI receives AiPs for alternative-fuelled ships including ammonia bunker vessel

CSSC’s SDARI obtained Approval in Principle (AiP) certificates from classification societies ABS, RINA and LR for four vessel designs including a 50,000 cubic metre ammonia bunkering vessel.

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June 12, 2025

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China’s SDARI receives AiPs for alternative-fuelled ships including ammonia bunker vessel

China State Shipbuilding Corporation’s (CSSC) Shanghai Merchant Ship Design and Research Institute (SDARI) recently obtained Approval in Principle (AiP) certificates from several classification societies for four vessel designs. 

Among the four is a 50,000 cubic metre (m3) ammonia bunkering vessel, which received AiP certificate from American Bureau of Shipping (ABS). 

It integrates liquid ammonia transportation and bunkering functions and can meet the long-distance transportation needs of liquefied gas goods such as liquefied petroleum gas (LPG) and liquid ammonia. 

The ship is equipped with three IMO Type A independent liquid cargo tanks, and uses zero-carbon ammonia fuel to drive the main engine and generator, meeting the IMO greenhouse gas emission reduction strategy and actively responding to the latest greenhouse gas intensity (GFI) requirements of the 83rd meeting of the IMO Marine Environment Protection Committee (MEPC 83). 

The entire ship is equipped with two independent 1,000 m3 deck liquid ammonia storage tanks, taking into account the ammonia fuel endurance requirements under multi-cargo loading and unloading, significantly improving operational economy and flexibility. 

In response to the needs of bunkering operations, it is specially equipped with a retractable bow thruster, side thruster and adjustable propellers to meet ABS’ DPS-1 notation and adapt to the complex port environment of bunkering operations. 

China’s SDARI receives AiPs for alternative-fuelled ships including ammonia bunker vessel

Meanwhile, a dual-fuel LNG/hydrogen-powered Ultramax bulker design and a 30,000 GT Roll-On/Roll-Off Passenger (ROPAX) ship designed to sail in the Mediterranean Sea received AiP certificates from RINA. 

SDARI also received AiP from Lloyd’s Register (LR) for a 113,000 dwt ammonia dual-fuel liquid cargo ship. The optimised propulsion system, specially configured with an ammonia dual-fuel power system and a wind-assisted propulsion system, is expected to save more than 10% energy, especially at low speeds. 

 

Photo credit: Shanghai Merchant Ship Design and Research Institute
Published: 12 June, 2025

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