Is Methanol the Future of Sustainable Shipping Fuel?

The Methanol-Powered Shipping Revolution

In recent times, the shipping industry has been exploring methanol as a potential fuel source. This trend was evidenced in 2023, with the order book pushing to 205 new builds as of mid-December. The poster child for methanol use was Maersk’s container ship Laura Maersk, which completed its maiden voyage from South Korea to Copenhagen in September. However, the journey towards mitigating environmental and economic concerns is still underway.

Methanol: A Greenhouse Gas Emitter

Methanol, currently derived from natural gas and coal, contributes significantly to greenhouse gas emissions. In fact, it is three times worse in terms of greenhouse gas emissions compared to marine diesel. This presents a significant environmental challenge that needs to be addressed if methanol is to be widely adopted as a shipping fuel.

Green Methanol: A Sustainable Alternative?

Producing greener methanol with reduced greenhouse gas emissions poses its own set of challenges. Some of the potential methodologies include synthesizing it from green hydrogen and carbon dioxide, or using biological sources of methane. However, these techniques are not without their hurdles. For instance, the process of electrolyzing water to produce hydrogen is costly and complex, making it a less viable option.

The Economic Implications of Methanol

The production of green methanol is associated with high costs, which poses a significant obstacle to its widespread adoption. Despite the efforts of the global methanol industry to promote methanol as a shipping fuel, the high costs and environmental concerns raise questions about the feasibility of these claims.

Other Alternative Pathways to Methanol Production

Apart from synthesizing it from green hydrogen and carbon dioxide, there are other alternative pathways to methanol production such as using biological sources of methane. However, these too are fraught with challenges in production and distribution, and even potential for fraud.

Shipping Industry's Move Towards Methanol

Despite these challenges, the shipping industry seems to be moving towards methanol. COSCO Shipping Energy Transportation, for example, has secured contracts for the construction of six new tankers powered by a combination of traditional fuels and environmentally friendly methanol. This reflects a broader trend in the shipping industry towards alternative and sustainable energy options.

Limited Methanol Bunkering Facilities

Another limitation is the availability of methanol bunkering facilities. Currently, there are just 10 sites worldwide offering methanol bunkering, with another 11 under development. This poses another challenge for the widespread adoption of methanol as a shipping fuel.

Conclusion

While methanol has been hailed as the potential future of shipping fuel, the journey towards its widespread adoption is fraught with environmental, economic, and logistical challenges. The shipping industry continues to explore methanol and other alternative fuels, but until these issues are addressed, the transition to methanol as a sustainable shipping fuel remains uncertain.