DNV Industry Insights: Methanol as bunker fuel heads for the mainstream in shipping
There are currently 122 ports with methanol storage facilities worldwide, and various ports – such as Gothenburg – have issued methanol bunkering rules or are preparing to do so, according to DNV.
Classification society DNV on Thursday (20 April) released an industry insights article on important criteria for the shipping industry to consider when using methanol as an alternative bunker fuel including methanol bunkering infrastructure and green methanol production.
The following are excerpts of the insights:
A growing order book for methanol-fuelled ships shows that the shipping industry sees methanol as a promising alternative fuel. Relying on decades of expertise in the field, DNV explains important criteria to consider.
Methanol has attracted considerable attention as an alternative ship fuel since 2021. The adoption of the IMO interim guidelines for ships using methyl or ethyl alcohol as fuel (MSC.1/Circ.1621) has been an enabler for shipowners ordering methanol-fuelled ships. Together with the IMO’s IGF Code for ships using low-flashpoint fuels and DNV’s mandatory class rules for methanol-powered ships, specifically the LFL FUELLED and Methanol Ready class notations, a comprehensive regulatory framework for the use of methanol as ship fuel is now available to DNV customers.
Unique expertise to support the uptake of methanol
Lindanger, the world’s first dual-fuel methanol-fuelled tanker, was built in 2016 to DNV class. Today, with 18 of the current global methanol tanker fleet of 24 vessels in the DNV class, DNV is in a unique position to support the uptake of methanol technology by the shipping industry. “Our certification is considered the gold standard by flag administrations, especially around the North Sea,” says Øyvind Skåra, Principal Engineer in Safety & Systems at DNV Korea. “Apart from methanol-fuelled ships, our expertise extends to bunker vessels and methanol production.” Working hand in hand, various DNV business areas provide a full range of non-class-related advisory services covering the entire methanol value chain.
Demonstrating what can be achieved
Proman, the world’s second-largest producer of methanol, and the shipping company Stena Bulk formed their joint venture Proman Stena Bulk to benefit from synergies between their companies in building up a fleet of modern, sustainable MR chemical tankers. “Together with Stena, a pioneer in methanol-fuelled ship operation, we are in a great position to demonstrate to the market what can be achieved with methanol propulsion,” says Peter Schild, Managing Director Sustainability at Proman. The joint venture’s current newbuild programme comprises six state-of-the-art dual-fuel MR tankers, all built to DNV class with three owned by the joint venture and three owned by Proman. Four of the vessels have been delivered already. “Through multiple optimizations, these vessels have achieved a world-leading EEDI for this ship type, which is seven per cent better than any other existing MR newbuild,” says Jacob Norrby, Head of Newbuilds and Projects at Stena Teknik.
“The reason Proman and Stena Bulk decided to go for methanol-fuelled ships is to be prepared for the transformation we have to undergo on the way to net zero,” says Erik Hånell, CEO of Stena Bulk. “We know that we will be able to use this investment through to 2050 and beyond.” The plan is to blend in increasing amounts of blue and, eventually, green methanol to remain compliant with the IMO trajectory towards zero carbon.
Safety and environmental considerations for methanol
“Methanol is neither a ‘climate’ gas nor an environmental hazard. It mixes well with water and becomes harmless quickly because it is biodegradable,” explains Skåra. “But because of the toxicity of the vapours escaping during bunkering, gas hazard zones must be designated on board – a point to consider on passenger ships.” Methanol vapours are heavier than air so they sink to lower-lying areas, he adds.
Methanol combustion requires adding about five per cent of MGO as a pilot fuel. On certain engine types, water can be injected into the combustion chamber to lower the NOx emissions. When retrofitting a methanol fuel system, existing fuel tanks or even ballast water tanks may be used for methanol after applying a specific internal coating, provided the required access points are available.
Methanol engine technology is proven and not especially complex, Skåra points out. “We know how to handle and use methanol as fuel, so it’s just about developing engines for various ship types.” The leading engine manufacturers plan to have more methanol-ready engines and retrofitting kits available soon, he adds.
A growing order book of newbuilds and retrofits
The order book for methanol-fuelled ships keeps growing, including for containerships, bulk carriers, tankers and even cruise and passenger vessels, with the first deliveries expected in 2024. “The demand is very high – owners want to be ready for this fuel,” says Skåra. “Orders for conversions of existing engines are likewise on the rise.”
Smaller cargo and offshore vessels which don’t have much space on board stand to benefit especially from the relative simplicity of methanol technology, says Chryssakis. For example, Van Oord has ordered a new methanol-fuelled wind farm installation vessel which will also feature advanced emission-control technology.
Bunkering infrastructure
There are currently 122 ports with methanol storage facilities worldwide, and various ports – such as Gothenburg – have issued methanol bunkering rules or are preparing to do so. “In Norway, where we have a lively methanol industry, ships can bunker methanol from tank trucks,” says Skåra. “The long-term solution will probably be bunker vessels because of their simplicity and flexibility.” Proman Stena Bulk have successfully carried out ship-to-ship, berth-to-ship and truck-to-ship methanol bunkering operations, says Proman’s Peter Schild.
Proman Stena Bulk have successfully carried out ship-to-ship, berth-to-ship and truck-to-ship methanol bunkering operations
Meanwhile, a new vision has emerged in the shipping industry: establishing “green shipping corridors” between specific ports where zero-emission fuels and technologies can be piloted. “We are actively involved in the discussions around establishing such collaborative platforms,” says Schild. “The key to realizing this concept is a clear regulatory framework, which has yet to be established.”
Green methanol: production ramp-up is needed
“Green methanol is not available in significant quantities today,” says Chryssakis. “Many companies are willing to invest in production but want to see the demand first.” Fortunately, he points out, there is enough time to build up the production infrastructure. “I am sure that limited volumes will be offered before long, but establishing the required production capacity will take time.” Proman is currently co-building a production facility for green methanol in Canada, and similar plans exist for Finland. “Building up a global methanol bunkering infrastructure is not a major challenge,” says Schild. “Blue or green methanol can be blended in eventually, provided we have international fuel specifications.”
Note: The full DNV Industry Insights article on methanol can be found here.
Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels.
The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029.
They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean.
Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.
“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said.
“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”
In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.
Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service.
This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships.
Photo credit: Yang Ming Marine Transport Published: 4 September, 2026
Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.
Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.
While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.
The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.
The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.
Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.
“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”
Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.
“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”
DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024
LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.
Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.
This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.
LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.
The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.
LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).
Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.
“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains.
“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve.
“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”