Methanol-Powered Vessels Take the Helm
Denmark-based Maersk announced on Monday that it has secured carbon-neutral methanol fuel for the maiden voyage of the world’s first methanol-enabled container vessel. This groundbreaking development comes in response to the shipping industry’s growing interest in methanol as an alternative, eco-friendly fuel source in its quest for net-zero emissions by 2050.
The first vessel in this new fleet will make its debut in Copenhagen later this year before being officially launched on September 14. In pursuit of its goal to transport 25% of its ocean cargo using green fuels by 2030, Maersk has also commissioned a total of 19 methanol-capable ships, with Hyundai Heavy Industries set to deliver 12 16,000-TEU (twenty-foot equivalent unit) vessels in 2024 and another six 17,000-TEU ships in 2025.
Shipping Giants Invest in Carbon-Neutral Methanol
French shipping giant CMA CGM has also entered the green shipping race, placing orders for at least 18 methanol-fuelled vessels. The company initially ordered six 15,000-TEU containers from China State Shipbuilding Corporation last June, with delivery slated for 2025. A subsequent $3 billion deal with CSSC in April this year added 12 more vessels to the eco-friendly roster.
China’s COSCO Shipping Holdings is another major player investing in methanol-powered ships, having ordered 12 24,000-TEU vessels in October 2021, worth nearly $2.9 billion. Delivery for this order is expected between Q3 2026 and Q3 2028, and COSCO recently added four more 16,000-TEU ships to be constructed in Yangzhou.
Methanol Adoption Across the Industry
The South Korean HMM Company Limited has nine 9,000-TEU dual-fuelled ships slated for delivery between 2025 and 2026, to be built at Hyundai Samho Heavy Industries and HJ Shipbuilding & Construction. Meanwhile, tanker company Stena Bulk has partnered with methanol producer Proman, completing its first U.S. Gulf Coast barge-to-ship methanol bunkering at Houston port in April.
Collaboration for Green Methanol Infrastructure
Leading shipping companies including COSCO, CMA CGM, and Shanghai International Port Group signed a memorandum of understanding (MoU) in April to pave the way for green methanol fuel procurement, supply, and delivery at major Chinese ports. Maersk also inked an MoU with SIPG in March to explore methanol bunkering for its forthcoming container vessels in 2024.
In Singapore, the world’s premier bunkering hub, a methanol bunkering pilot will be conducted in Q3 2023 by a consortium comprising Maersk Oil Trading, Mitsui & Co, Mitsui & Co Energy Trading Singapore, and the American Bureau of Shipping.
Australia’s largest container port in Melbourne signed an MoU in April with parties including Maersk, Svitzer Australia, CMA CGM subsidiary ANL, Stolthaven Terminals, HAMR Energy, and ABEL Energy to investigate the commercial feasibility of a green methanol bunkering hub.
Pioneering Projects Fuel Methanol Adoption
Sweden’s port of Gothenburg completed the world’s first ship-to-ship methanol bunkering on the Stena Germanica, the premier methanol-powered ferry. Together with Inter Terminals Sweden, the port aims to establish a methanol storage facility by the end of 2023.
In Egypt, Alexandria National Refining and Petrochemicals signed a $450 million agreement with Norway’s Scatec in May to produce the country’s inaugural green methanol.
