Availability of green methanol a challenge, says report

Production of sustainable methanol needs to increase rapidly to avoid availability issues and high prices, according to a report just released by Lloyd’s Register (LR).

The technology is well-established, the Fuel for Thought: Methanol report says, with most engine manufacturers ready or nearly ready to provide dual-fuel units. However, most of methanol produced at scale and available today uses natural gas or coal as a feedstock and is not renewable.

Interest from shipowners, however, is running high, the LR analysis says. By 2030, methanol-fuelled ships could account for as much as 20% of the orderbook. But pricing, availability and carbon accounting remain significant challenges.

A lack of availability could lead to questions over whether methanol produced will be certified as green, the classification society warns. This is necessary so that greenhouse gases can be accounted for accurately for a full lifecycle assessment.  

Building blocks, however, are in place. The petrochemical has been shipped as a cargo for years and used as a marine fuel for nearly a decade. Safe bunkering guidance has been written, laying the foundations for international safety requirements and class regulations both for new ships and retrofits.

Douglas Raitt, LR’s Regional Advisory Services Manager for Asia, commented: “Methanol’s time to shine as an alternative fuel candidate for the maritime energy transition is long overdue. Whilst there is no single fuel which will provide a ‘silver bullet’ for decarbonisation, methanol has the potential to play a key role in a multi-fuel future as part of the maritime industry’s ambition to decarbonise.

“The Fuel for Thought report shows how crucial the commercial scale-up of green and blue methanol production is if the fuel is to be widely adopted by the maritime industry. We are, however, seeing positive signs with continued growth in technology and community readiness for methanol,” he added.