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Methanol Institute: ‘Plausible’ business opportunity, lower barriers to entry for methanol bunkering first movers

Discussions around the need to develop methanol bunkering operations are taking place at numerous ports ahead of estimated demand of above 7M mtpa by 2030, says Chris Chatterton of Methanol Institute.

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Credible business opportunities are available for ‘first movers’ of methanol bunkering due to expected deliveries of methanol-fuelled vessels from 2024, states the Chief Operating Officer at Methanol Institute.

Front view of methanol bunkering pump room with vapour recovery tank Stena Germanica
Front view of methanol bunkering pump room with vapour recovery tank – Stena Germanica

‘With a number of methanol dual-fuel vessels expected to come into service within the next 12 to 16 months, we are expecting physical bunkering opportunities of up to an estimated one million metric tonnes of methanol per annum,” Chris Chatterton told bunkering publication Manifold Times.

“However, currently, approved commercial facilities for methanol bunkering are limited at any of the major ports for any of these newbuilds to refuel.”

According to Chatterton, the lack of methanol bunkering capacity was partly due to methanol dual-fuel vessel owners not having announced where they would choose to safely bunker methanol and what specification of methanol (conventional, lower carbon, or carbon neutral).

The group is still deciding on where to source the material, how to ensure its efficient transportation into the declared port as a bunker fuel, and at a price which supports the business case for switching fuels – allowing them to remain competitive while reducing emissions.

Conventional methanol as a product, based on natural gas, which significantly reduces PM, SOx and NOx, in addition to lowering CO2 by up to 15%, is meanwhile widely available at over 100 international ports due to its legacy as a petrochemical feedstock.

“Sheer availability of methanol is extremely high. Unfortunately, ‘formally approved’ physical delivery mechanisms of methanol as a bunker fuel, with the exception of Rotterdam and Gothenburg ports, is presently very limited, but expected to change very soon,” he explained.

For example, the Stena Germannica which has been bunkered shore-to-ship since about 2015 without incident very recently began STS bunkering under operations by Methanex, the Port of Gothenburg and tanker operator E&S.

Many methanol, dual-fuel product carriers, such as those of Waterfront Shipping, have been involved with ship-to-ship transfers of methanol as a fuel for some time – since 2016; bunkering methanol in Ulsan, New Plymouth, Geismar, Trinidad, Punta Arenas, Houston, Rotterdam, Onsan and Taicang, to name a few. Proman has also begun bunkering their dual-fuel product carriers in a similar fashion.

“The expected demand is already there, based on the number of dual-fuel methanol vessels on order, so it’s really a situation of bunkering agents and vessel operators coming together to collaborate on how to secure and store methanol bunkers with an appropriate specification and safely transfer them,” he stated.

“The opportunity is out there.”

Methanol Institute, which serves as the trade association for the global methanol industry, estimates low barriers of entry for a bunkering firm to start methanol marine refuelling operations, compared to other alternative fuels.

Rear view of methanol bunkering pump room complete with low flash point fit for purpose vapour and flame detection technology as well as circuit breakers Stena Germanica
Rear view of methanol bunkering pump room complete with low flash point, “fit for purpose” vapour and flame detection technology as well as circuit breakers – Stena Germanica

“Estimates to convert an 8,000 to 10,000 dwt bunkering vessel for methanol bunkering have been pegged at less than EUR 100,000 (USD 108,000),” highlighted Chatterton.

“It’s not as much of a financial commitment to get involved, at least in comparison to other, alternative fuels. Safe handling of methanol is well understood, as a liquid at ambient temperature, with formal training programs readily available.

“Most existing bunkering firms can compete in this market with some training, best practice transfer and minimal investment. After which, coordinating with the local port authority to allow for safe methanol bunkering and then following locally approved guidelines to ensure incident-free bunkering services is critical.”

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Photo credit: Gothenburg Port Authority
Published: 1 February, 2023

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

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.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

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

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

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.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

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.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

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.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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