DNV: Methanol Marine Fuel Ready, Costs Slow Uptake

Methanol’s Readiness for Marine Fuel Applications

DNV, a prominent classification society, reports that methanol marine fuel has achieved a “high readiness level” for widespread adoption in the shipping industry. Significant technical advancements, including safety regulations, robust fuel systems, and mature engine technologies, are now firmly established. With over 450 methanol-capable vessels operational or on order, the projected global fleet could consume more than 15 million metric tons of methanol annually by 2030, underscoring its crucial role as a promising alternative fuel for maritime decarbonization efforts.

Economic Barriers Impede Wider Bunker Uptake

Despite its technical viability, the wider bunker uptake of methanol is significantly slowed by persistent economic factors, primarily high costs and limited supply. Current low-GHG methanol production capacity stands at approximately 2.2 million metric tons annually, with only modest volumes supplied for bunkering globally. Recent data shows limited supply, for example, 1,600 mt in Singapore and 11,800 mt in Rotterdam over recent periods. The cost differential between bio-methanol and traditional fossil fuels, as well as fossil methanol, remains a major hurdle, with bio-methanol prices still substantially higher than conventional marine gas oil.

Accelerating Green Methanol Adoption

The maritime sector must address the dual challenge of scaling green methanol production and reducing its price to accelerate broader adoption. While technical readiness is no longer the primary constraint for clean shipping fuels, substantial investment in sustainable production pathways and robust bunkering infrastructure is critical. Reducing the operational costs associated with these cleaner alternative fuels is essential to facilitate the transition towards a greener shipping future, enabling wider methanol adoption and significantly contributing to global GHG emission reduction targets.