As we step into the 2020s, methanol is emerging as the forerunner in the race for alternative fuels. With a record-breaking number of orders for new builds and retrofits flooding in, the maritime industry concludes an unavoidable shift towards methanol power.
Neoteric data from DNV’s Alternative Fuels Insight platform illuminates methanol’s rising dominance. In the same breath, July proved to be a milestone with 48 methanol-powered vessels added to the data pool, consisting of 15 retrofits.
Soaring Demand for Methanol-powered Vessels
Martin Wold, an eminent consultant in DNV’s Maritime Advisory business, remarks on the soaring popularity of methanol as the alternative fuel of choice. “Having surpassed last month’s record by an impressive margin, orders for methanol-powered vessels have now soared past the 200-figure milestone.”
This significant influx of orders and retrofits for methanol mirrors the world-first that is the delivery of a container vessel powered by methanol fuel. Coinciding with this groundbreaking event was another first-of-its-kind achievement- the signing of a bunker supply agreement for green methanol.
Escalating Methanol Retrofit News in Shipping Markets
Recent weeks in the shipping markets have been peppered with a deluge of news around methanol retrofit. The German engine manufacturer, MAN Energy Solutions, predicts that approximately 2800 vessels integrated with MAN two- and four-stroke engines today are prime candidates for conversion.
An interactive session with Splash saw Dr. Tristan Smith, the Associate Professor in Energy and Shipping at UCL Energy Institute, tallying the potential for engine retrofits across the worldwide merchant fleet in the thousands per annum.
Economic Viability of Methanol Conversion
Methanol retrofit’s cost factor varies, incorporating fuel storage and supply system, which ranges between $5 million and $15 million, contingent on the fuel type. Following a generalized principle, this cost should not surpass 25% of a ship’s new build cost to be economically feasible – sage advice from DNV.
No doubt, methanol is carving out its supremacy in the world of alternative fuels. As the maritime industry encounters an avalanche of orders for methanol-powered vessels, we stand witness to what seems to be an irreversible trend toward a more sustainable and environment-friendly future.
