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Singapore: Industry expert clarifies rising misconception of methanol bunker fuel carbon intensity

Several industry stakeholders have expressed difficulties in meeting the stated carbon intensity of 90 gCO2e / MJ outlined by the Maritime and Port Authority of Singapore.

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RESIZED AND ADJUSTED Chris Chatterton (1)

A misconception by parties keen on supplying methanol as a bunker fuel at Singapore port is rising and needs to be addressed, observed methanol industry expert Chris Chatterton.

The Maritime and Port Authority of Singapore (MPA) on December 2023 issued the Expression of Interest (EOI) for the supply of methanol as a marine bunker fuel in the port of Singapore document to the bunkering sector.

In it stated: “The Participant shall propose methanol product(s) with a carbon intensity (CI) not greater than 90 gCO2e / MJ (well-to-wake) for bunkering in Singapore”.

Several industry stakeholders have expressed to Chatterton difficulties in meeting the stated CI of 90 gCO2e / MJ due to conventional grey methanol produced using current modern methods having a CI of between 90 to 95 gCO2e / MJ, or even higher in some cases, on a life cycle assessment basis.

Further, the parties were concerned of significant higher costs when considering the premium between fuel oil (HFO and LSFO) and more expensive green [carbon neutral] methanol.

“Guys, don’t sweat the premium! When we talk about green methanol in premiums, we are referring to 100% green methanol here and nobody is going to burn this product in commercial operations due to costs unless it is economically viable under prevailing policy or they are able to transfer these costs to cargo owners,” he exclaimed.

“Questions persist on how to meet the CI specification and some players are wondering if the methanol can be blended or needs to come direct unchanged from the manufacturing complex. This needs to be addressed but is technically very simple to do.”

Chatterton recommends the bunkering industry to utilise the Mass Balance Approach – a concept familiar with the chemical industry – which traces the flow of materials through a supply chain as a compliant method to lower the specific CI content of methanol for use as marine fuel (combusted).

Source: International Sustainability & Carbon Certification (ISCC)

Source: International Sustainability & Carbon Certification (ISCC)

“Not all methanol production plants are created equal and when you purchase methanol you are going to get a CI certificate stating the carbon dioxide (CO2) equivalent per Megajoule (MJ) from well-to-plant gate basis,” he informed.

“And just by blending the certified grade with a portion of green carbon neutral methanol you can effectively lower the CI value of conventional conventional methanol to meet the 90 gCO2e / MJ specification required by MPA.

“Singapore is an ideal hub to receive and trade varying specifications of certified grey, blue and green methanol from not only China, Middle East, but from any corner of the world, efficiently and cost-effectively.”

Availability of green carbon neutral methanol from China

Globally, “pilot” production projects are expected to produce over 6 million metric tonnes (mt) of green methanol in 2025, with up to 4 million mt coming from China, stated Chatterton who added a large portion of China’s green methanol will be derived from wind power, which is arguably the lowest cost wind resource with the highest capacity factor globally.

“Northeast China has a very high onshore wind capacity factor at above 95% which is amongst the best in the world and enough to provide baseload power rivalling utility scale gas fired powerplants,” he explained.

“China is also a world leader in renewable power production, whether solar or wind by a factor of two and has more than twice the renewable power capacity than USA.

“Further, China is the largest producer of renewable power equipment of any kind in the world and by far also the cheapest because they produce at scale; whether it’s wind towers, rotor blades, turbines, or solar panels China is the outright leader in production capacity and has been so for many years.”

Most of China’s pilot scale projects set to produce green methanol are already in the final investment phase. To date, pilot projects in operation could only produce between 100,000 to 200,000 mt of green methanol per annum, and low volumes have resulted in higher prices for the green material.

However, once scaled up, these pilot projects will be able to produce 2-3 times more product to eventually lead to a softening of market pricing for green methanol, noted Chatterton.

Future prices and procurement of green methanol

“Therefore, there is no need to be too worried about the current methanol premium over HFO. There are certainly organisations able to provide methanol at more flexible terms, but these term contracts typically are for a longer duration,” he continued.

“A similar development took place for shipping’s transition to IMO 2020, when all majors instructed bunker suppliers needed to enter into long term contracts for at least a year to secure 0.50% sulphur limit VLSFO.”

Moving forward, Chatterton believes the combined factors of increased availability of green methanol, more efficient renewable power and power equipment cost structures, resulting in economies of scale will mean more affordable methanol from 2025 onwards – particularly from China.

“The green methanol producers in China are mainly pursuing ISCC EU certification which means it is compliant for use in Europe. With FuelEU kicking in, it will be even more ideal for shipowners to switch to using lower carbon and carbon neutral methanol as a sustainable marine fuel,” he ends.

Related: MPA receives 50 submissions for EOI to supply methanol bunker fuel in Singapore
Related: MPA issues EOI seeking for methanol bunker fuel suppliers in Singapore

 

Published: 20 May 2024

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Western Baltic Engineering unveils green methanol bunkering vessel design for Klaipėda

Designed for flexible operations in shallow waters and local bunkering routes, the concept features an 800-metric-tonne green methanol capacity and the potential to supply up to 250,000 mt annually.

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Western Baltic Engineering unveils green methanol bunkering vessel design for Klaipėda

Ship design and engineering service provider Western Baltic Engineering on Thursday (16 July) showcased its latest concept design for a green methanol bunkering vessel, developed for the operational needs of the Port of Klaipėda.

Designed for flexible operations in shallow waters and local bunkering routes, the concept features an 800-metric-tonne green methanol capacity and the potential to supply up to 250,000 metric tonnes (mt) annually. 

“It is Western Baltic Engineering’s first concept dedicated exclusively to green methanol bunkering, expanding our portfolio of alternative-fuel vessel solutions,” the company said in a social media post.

“Building on our experience in methanol-ready vessel design, it reflects our continued focus on enabling the industry’s transition to cleaner fuels.”

“As the maritime sector evolves, engineering companies have a responsibility not only to respond to market needs but also to anticipate future challenges,” said Marius Arkusauskas, Director at Western Baltic Engineering.

“By exploring emerging technologies and alternative fuel applications, we help our partners prepare for the next generation of maritime operations while contributing to a more sustainable future.”

 

Photo credit: Western Baltic Engineering
Published: 20 July, 2026

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China launches methanol shipping supply chain alliance to accelerate green transition

Marine fuel suppliers in the alliance include Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai), and Shenzhen Port Energy Development.

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China Waterborne Transport Research Institute under the Ministry of Transport and China Transport News recently jointly launched a Methanol Fuel Shipping Supply Chain Innovation Alliance with 20 organisations spanning the shipping, port, energy, equipment, research and industry association sectors.

The alliance was officially announced during the main event of China Maritime Day 2026 on 11 July, where members also released a joint initiative to develop a collaborative methanol-fuelled shipping supply chain.

The alliance aims to implement China’s national strategy for green economic transformation and support the Ministry of Transport’s “One Network, Four Modernisations” initiative by building a safe, efficient, economical and reliable methanol marine fuel supply chain

Under the joint initiative, alliance members pledged to align with China’s national decarbonisation strategy by promoting methanol as a key pathway for the shipping sector’s green transition and optimising the industry’s energy mix.

The members also pledged to strengthen collaboration across the supply chain to improve coordination between bunker fuel production, transportation and end users while advancing technological innovation.

Lastly, the alliance will support the development of policies, planning and technical standards, promote resource sharing and joint research, and accelerate the large-scale adoption of methanol as a marine fuel.

The alliance brings together companies and organisations representing the entire methanol shipping supply chain.

Members include shipping and port members such as China Changjiang National Shipping (Group) Corporation, COSCO Shipping Bulk Co., Ltd., Shandong Port Group, and Wuhan Chuangxin Jianghai Shipping Co., Ltd.

Energy companies in the alliance include Sinopec Chemical Commercial Holding Company Limited and Methanex Corporation.

Marine fuel suppliers including Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai) Co Ltd and Shenzhen Port Energy Development Co Ltd are also part of the alliance. 

Equipment manufacturers in the alliance are CSSC 711th Research Institute, CSSC Power (Group) Corporation Ltd and Chongqing Hongjiang Machinery Co Ltd.

Research, media and industry organisations participating in the alliance include the China Waterborne Transport Research Institute, China Transport News, and the Methanol Institute.

The Methanol Institute said methanol is moving beyond individual projects towards coordinated action across the entire value chain. 

“And China continues to play a leading role in advancing methanol as a marine fuel,” it said in a social media post.  

“We’re proud to work alongside our fellow alliance members to help strengthen the methanol supply chain and support the continued growth of methanol as a marine fuel.”

 

Photo credit: David Yu from Pixabay
Published: 17 July, 2026

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MTF releases new safety guidelines for methanol-fuelled ships

Recognising that methanol as a marine fuel remains at an early stage of adoption, the guidelines place particular emphasis on risk-based decision-making, continuous improvement and organisational agility.

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The Maritime Technologies Forum (MTF) recently announced the publication of new guidelines to support companies in developing new Safety Management Systems (SMS) and strengthening existing SMS for ships using methanol as marine fuel.

As the maritime industry accelerates its decarbonisation efforts, low-carbon methanol has emerged as one of the most scalable alternative fuel options. 

Its liquid state under ambient conditions, compatibility with existing fuel infrastructure, and increasing industry adoption make methanol an attractive near-term solution. However, its toxicity, low flashpoint and invisible vapour and flame characteristics introduce new safety challenges for the maritime industry that require enhanced procedural controls and risk management measures for safe operations.

“Developed collaboratively by MTF members and industry stakeholders with expertise in methanol fuel technologies and the International Safety Management (ISM) Code, the guidelines provide methanol-specific recommendations across all functional areas of an SMS,” MTF said in a statement. 

Recognising that methanol as a marine fuel remains at an early stage of adoption, the guidelines place particular emphasis on risk-based decision-making, continuous improvement and organisational agility. 

The guidelines emphasised the importance of learning from hazardous occurrences, near-misses and accidents involving methanol fuel.

The report also highlighted the importance of developing versatile SMS frameworks capable of supporting mixed-fuel operations during the transition period, where both conventional fuels and methanol may be carried and used onboard.

Human factors are identified as a critical element in ensuring safe methanol operations. The guidelines recommend that companies assess competency, training, familiarisation and resource requirements based on individual roles and responsibilities.

By providing clear, practical recommendations aligned with the ISM Code, the new MTF guidelines aim to support the safe and effective adoption of methanol as fuel while enabling the maritime industry’s transition towards lower-carbon shipping.

Note: The new guidelines can be viewed here.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 17 July, 2026

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