Alternative Fuels

Methanol offers shipping ‘pathway’ to a low carbon future

CEO of the Methanol Institute tells why methanol could be playing a much bigger role in the coming decades.

Published

8 years ago

April 23, 2018

Admin

The following is a statement from Methanol Institute, shared with Manifold Times:

IMO member states have agreed on the decarbonisation of the shipping industry and the means to start is largely in place, says Greg Dolan, CEO of the Methanol Institute.

The hard-fought agreement struck at the end of last week’s Marine Environment Protection Committee sets a framework for the first long term greenhouse gas reduction strategy in shipping. Hailed as a landmark and a ‘Maritime Paris Agreement’ it sets the first ambitions for emissions reduction targets in the sector.

Some 21 years since the Kyoto agreement first left shipping out of global climate controls, the industry has begun to move from a strategy of efficiency improvements to one of targeted reductions designed to progressively decarbonise.

The two weeks of discussion and debate were uncomfortable viewing at times and certainly proved the assertion that like sausages, it is never a good idea to watch laws being made.

What the debate overlooked is that the industry has the opportunity to achieve a zero-emissions profile within a relatively short timeframe, simply by switching to Methanol as its primary fuel.

Methanol is set to go far beyond its ability to meet the emissions requirements of 2020 and provide a pathway for a zero-carbon future which still enables the industry to achieve future demand growth projections.

Ready to go as a marine fuel, Methanol could be playing a much bigger role in coming decades. Unlike LNG which only solves the SOx/NOx emissions problem, Methanol offers a pathway to cleaner shipping, first by meeting IMO 2020 low sulphur regulations and ultimately for progressively ‘lower carbon’ emissions.

The majority of Methanol available today is produced from natural gas, however, this is changing. Several existing plants are already producing low-carbon methanol through a carbon capture/re-injection production loop.

Methanol production offers a wide range of feedstock and process technologies for future proof zero-carbon marine fuels. It can be produced from gasified biomass or from biomethane, while renewable electricity such as solar or wind, together with waste and/or atmospheric CO₂ streams can be used as the building blocks for renewable methanol ’e-fuel’.

At the time of this article, there are 7 methanol-fuelled tankers trading internationally with another 4 dual-fuel vessels scheduled for delivery in 2019. The Stena Germanica, one of the largest ROPAX vessels in the world, fully converted all four, main propulsion units to burn methanol in early 2017, as part of a successful carbon displacement program. Additionally, the pending amendments to the IMO’s IGF Codes scheduled for September, 2018 will fully complete the regulatory picture beyond the existing classification society guidance. There have been a number of projects and studies into Methanol’s viability and suitability as a marine fuel, which have concluded that there are no technical or safety obstacles to its adoption by industry.

A widely-available liquid fuel, Methanol is relatively simple to store and handle, despite having a lower flashpoint than conventional fuels. As methanol is miscible in water, it is less harmful to the environment and marine life in the event of a spill.

From a CAPEX perspective, methanol new-buildings are negligibly more than for traditionally fuelled vessels and significantly less than LNG. Retrofits have shown to be almost at the level of scrubbing technology, with running costs comparable to traditionally fuelled vessels. The combined experience gained on the Stena Germanica and the 7 tankers operated by Waterfront Shipping have proven that Methanol is well-suited as a low emission, high performance marine fuel.

In a communique marking the end of MEPC, the International Chamber of Shipping noted the MEPC agreement’s high level of ambition for future emissions reduction which sent ‘the clear signal [the industry] needs to get on with the job of developing zero CO₂ fuels, so that the entire sector will be in a position to decarbonise completely, consistent with the 1.5 degrees climate change goal’.

This is a process that has already begun – and by adopting methanol, the shipping industry can begin to take advantage of it without further delay.

Photo credit: Methanex
Published: 23 April, 2018

Alternative Fuels

Olam Agri, Vitol Bunkers wrap up co-processed VLSFO bio-bunkering operation in Singapore

“MV Scion Mathilda” was supplied with 246.5 mt of co-processed VLSFO at the Port of Singapore, comprising 212 mt of conventional VLSFO and 34.5 mt of co-processed CNSL VLSFO.

Published

5 hours ago

August 21, 2026

Admin

Olam Agri, Vitol Bunkers wrap up co-processed VLSFO bio-bunkering operation in Singapore

Agri-business Olam Agri on Thursday (20 August) said it successfully completed Singapore’s first bio-bunkering operation with Vitol Bunkers, using Very Low Sulphur Fuel Oil (VLSFO) co-processed with Cashew Nutshell Liquid (CNSL), showcasing a waste-to-energy approach.

MV Scion Mathilda was supplied with 246.5 metric tonnes (mt) of co-processed VLSFO at the Port of Singapore, comprising 212 mt of conventional VLSFO and 34.5 mt of co-processed CNSL VLSFO. The product was supplied by Vitol Bunkers and procured by Olam Agri’s ocean freight business.

The fuel was subsequently consumed during a voyage from Caofeidian (China) to Rotterdam (Netherlands), followed by a ballast leg from Rotterdam to Barcarena (Brazil).

Total fuel consumption across the voyage comprised 1,354 mt of VLSFO, 101 mt of MGO and 34.1 mt of co-processed VLSFO. The vessel completed the voyage without any operational remarks, confirming the product’s performance in real-world conditions.

The operation marks a significant step forward in the search for practical, scalable alternatives to conventional marine fuels, and demonstrates that meaningful greenhouse gas (GHG) reductions can be achieved without any change to vessel operations.

Martin Fynbo, Head of Bunkers at Olam Agri’s ocean freight business, said: “The successful deployment of this product, achieving verified greenhouse gas mitigation alongside ensuring operational integrity, serves as a definitive proof of concept. This milestone provides validation to a traditionally risk-averse sector, demonstrating that a previously disregarded bio-product solution can both be operationally viable and sustainable.”

Sherman Yeo, Trading Manager, Vitol Bunkers, said: “This operation proves that co-processed VLSFO can be delivered and consumed at sea without any compromise to vessel performance or operational routine. The mass balance solution we have developed opens up a genuinely new avenue for GHG reduction in marine fuels.”

The co-processed VLSFO carries a GHG intensity of 2.02 gCO2eq/MJ, delivering savings of at least 120 MT CO2eq compared with conventional VLSFO on an equivalent basis. This outcome was achieved with no additional onboard handling or fuel treatment requirements.

Vitol’s co-processing and mass balancing methodology resolves a longstanding challenge in the use of CNSL as a marine biofuel. Direct blending of CNSL has historically been dismissed by the industry due to material compatibility and handling issues. By co-processing CNSL within the refinery stream, Vitol has opened a commercially viable pathway for CNSL to contribute to GHG reduction in shipping.

The co-processed VLSFO used in this operation conforms to RMG380 VLSFO grade and has the same chemical composition and quality as conventional fuel, eliminating the need for additional permissions or special clauses in charter party agreements.

“CNSL, derived as a by-product of cashew processing, represents an underutilised feedstock with genuine potential as a scalable marine biofuel component,” Olam Agri added.

“This trial demonstrates that with the right processing approach, it can be integrated into existing supply chains without disruption.”

Photo credit: Vitol
Published: 21 August, 2026

Alternative Fuels

China: CIMC Enric and Sinopec to team up on LNG, methanol bunker fuels in new deal

Under the new agreement, the companies will deepen cooperation across the LNG value chain and develop bunkering solutions including truck-to-ship bunkering services.

Published

5 hours ago

August 21, 2026

Admin

China: CIMC Enric and Sinopec to team up on LNG, methanol bunker fuels in new deal

Clean energy equipment and services provider CIMC Enric on Monday (17 August) said it has signed a strategic cooperation agreement with Sinopec Fuel Oil Sales Co Ltd, covering LNG, green methanol, shipbuilding and new energy for marine applications.

Under the new agreement, the companies will deepen cooperation across the LNG value chain and develop bunkering solutions including truck-to-ship bunkering services. They also plan to expand into emerging marine fuels and energy solutions, including green methanol and sustainable aviation fuel (SAF).

The partnership will focus on five areas: energy-resource cooperation, shipbuilding, marine-fuel bunkering, vehicle-related services and integrated services.

The agreement was signed in Shenzhen on 14 August by Yang Xiaohu, executive director and president of CIMC Enric, and Xu Tao, deputy general manager and Party committee member of Sinopec Fuel Oil.

The cooperation will span commercial implementation, industry development and technology innovation.

The partnership comes as the shipping industry accelerates its transition towards lower-carbon fuels amid tightening International Maritime Organization emissions regulations and China’s carbon-reduction goals.

CIMC Enric specialises in equipment for the clean-energy sector, while Sinopec Fuel Oil leverages the resource and supply network of China Petroleum & Chemical Corporation (Sinopec). Both said their complementary capabilities provide a basis for moving beyond a conventional equipment-supply relationship towards broader cooperation integrating equipment, fuels, applications and technology.

The two companies began working together in October 2022, initially focusing on LNG and CNG storage and transportation equipment. Their cooperation has since expanded into marine equipment, green methanol bunkering, storage and transportation equipment, and external gas-source procurement.

The companies said they will establish a regular cooperation mechanism and develop detailed projects to accelerate implementation. The partnership is intended to strengthen collaboration between energy-equipment and energy-supply companies and support the maritime industry’s transition towards lower-carbon fuels.

Photo credit: CIMC Enric
Published: 21 August, 2026

Ammonia

Azane signs ammonia bunkering deal with Equinor, first deliveries due in H2 2026

Both signed a framework agreement for the supply of ammonia and the execution of truck-to-ship ammonia bunkering operations for ammonia-fuelled vessels.

Published

5 hours ago

August 21, 2026

Admin

Azane signs ammonia bunkering deal with Equinor, first deliveries due in H2 2026

Azane Fuel Solutions (Azane) on Thursday (20 August) said it has signed a framework agreement with Equinor Energy AS for the supply of ammonia and the execution of truck-to-ship ammonia bunkering operations for ammonia-fuelled vessels.

The first deliveries will commence during the second half of 2026. The agreement establishes a framework for future ammonia fuel deliveries and bunkering operations supporting the maritime industry’s transition towards lower-emission solutions.

“This agreement marks an important milestone for Azane and demonstrates growing confidence in ammonia as a marine fuel,” said Steinar Kostøl, CEO of Azane.

“Truck-to-ship bunkering offers a practical and flexible solution for the early adoption of ammonia-fuelled vessels while the broader ammonia fuel ecosystem continues to develop.”

The agreement covers truck-to-ship ammonia bunkering operations, where ammonia is transported to the quayside and transferred directly to the receiving vessel.

The contract supports Azane’s strategy of enabling near-term deployment of ammonia as a marine fuel while continuing to develop dedicated ammonia infrastructure for future market growth.

Photo credit: Azane Fuel Solutions
Published: 21 August, 2026