Marine Methanol Update - Sustainable Marine Fuel (SMF) Transformation
- ABCAP Oil & Gas Analyst
- Jan 8, 2024
- 4 min read
Introduction:
Methanol stands out as a revolutionary solution, gaining prominence for its unmatched cost-effectiveness and carbon-neutral attributes. According to a study done by Aalborg University and Chalmers University positions methanol as the lowest-cost carbon-neutral shipping fuel in terms of the total cost of ownership (TCO) across diverse vessels and applications, surpassing a suite of alternatives including ammonia, liquefied biogas, electricity, and hydrogen.
Global Methanol Production:
The Methanol Institute's recent exhaustive research offers a panoramic view of the global methanol production landscape. This industry, a truly global player, spans continents with production facilities strategically placed in Asia, North and South America, Europe, Africa, and the Middle East. With over 90 methanol plants operating worldwide, the combined production capacity exceeds a staggering 120 million metric tons, translating to approximately 36.6 billion gallons or 138 billion liters.
(Source: Chemical Market Analytics & Methanol Institute)
Methanol-Fueled Vessels:
Navigating towards a sustainable future, the maritime sector is witnessing a transformative shift with methanol-fueled vessels leading the way. According to the latest insights from DNV's Alternative Fuels, the current fleet boasts 25 methanol-fueled vessels, predominantly tankers. The exciting news, however, lies in the propulsion of change, as orders for methanol-fueled containerships are on the rise, with the count reaching a noteworthy 68 ships, signaling a broader industry acceptance of methanol as a primary fuel choice.
Methanol Bunkering Process:
A key catalyst in the seamless integration of methanol into maritime operations is its bunkering process, which closely aligns with established norms for bunkering traditional Marine Gas Oil (MGO) or Heavy Fuel Oil (HFO). Methanol's ability to remain in a liquid state at ambient temperature and pressure renders existing infrastructure adaptable for its use with minor modifications, offering a cost-effective and straightforward transition.
Energy Density Differences:
Methanol showcases a significant energy density advantage over other alternative shipping fuels like LNG, ammonia, and hydrogen. Despite its lower energy density compared to traditional shipping fuels such as Marine Gas Oil (MGO), the spatial efficiency of methanol storage is commendable. The nuanced consideration of storage tank size, secondary barriers, and cofferdams reveals a compelling picture of methanol's potential to optimize space utilization, thereby mitigating the spatial challenge.
Comparing MGO, Methanol and LNG:
Below you will see MGO (Marine Gas Oil) used as the reference fuel for calculating the percentage differences for Methanol, and LNG (Liquefied Natural Gas):
Methanol vs. MGO:
MGO: 36.6 GJ/m3
Methanol: 15.8 GJ/m3
Percentage Difference ≈ 56.56%
LNG vs. MGO:
MGO: 36.6 GJ/m3
LNG: 22.0 GJ/m3
Percentage Difference ≈ 39.34%
Liquefied Natural Gas (LNG) holds a notable density advantage over Methanol, offering a higher energy content per unit volume. However, this advantage comes at a cost – the necessity for cryogenic storage. LNG needs to be maintained at extremely low temperatures to remain in its liquid state, demanding specialized storage conditions on vessels. While LNG boasts a density advantage over Methanol, the requirement for cryogenic storage introduces a trade-off scenario, impacting cargo space on vessels. The challenge lies in finding the right equilibrium between the heightened energy density of LNG and the practical constraints imposed by its storage conditions.
On the other hand, Methanol, while presenting a lower energy density, compensates with a more straightforward handling process. Its bunkering mirrors the existing Marine Gas Oil (MGO) procedures, allowing for a seamless transition for vessel operators. Notably, Methanol benefits from established safety guidelines for bunkering, ensuring a secure and familiar operational environment. This positions Methanol as a pragmatic choice, striking a balance between efficiency and ease of integration within the current maritime infrastructure.
(Source: S&P Global Commodities Insights)
Methanol Bunker Supply Availability today:
The following is a list of ports where the first to load and/ or demonstrate methanol bunkering as a marine fuel:
Ulsan, South Korea (Hyundai HMD Shipyard; since 2016)
New Plymouth, New Zealand (since June 2016)
Geismar, USA (since August 2016)
Trinidad (since April 2017)
Punta Arenas, Chile (since February 2019)
Houston, USA (since June 2020)
Rotterdam, Netherlands (inaugural global bunkering demonstration, May 2021)
Onsan, South Korea (May 2022)
Taicang, China (August 2022)
Other major ports have already announced their development of Methanol Bunkering capabilities, such as Shanghai, China and Japan, both announced, in direct collaboration with a major shipping company bunkering contract behind the developments.
Methanol Bunkering Safety Considerations:
Safety takes center stage in the adoption of methanol as a shipping fuel. The inherent toxicity of methanol necessitates comprehensive crew training to address potential leaks and ensure a secure operational environment. Beyond toxicity, the fuel's low flashpoint demands stringent safety measures to prevent and contain fires. Ventilation, leak detection, heat detection, and fire extinguishing equipment are paramount, guided by well-established safety guidelines and regulations. It's noteworthy that the Interim Guidelines for the Safety of Ships Using Methyl/Ethyl Alcohol as Fuel were meticulously formulated over six years and officially approved by the International Maritime Organization (IMO) in November 2020, setting a gold standard for safety protocols within the industry.
Links to Methanol Safety Guidelines:
ABCAP Conclusion:
Methanol emerges as a transformative force in the realm of sustainable shipping fuels, fueled by its economic viability, global production network, and spatial efficiency advantages. The industry's embrace of methanol-fueled vessels, particularly the growing demand in containerships, paints a promising picture of a maritime sector transitioning towards a cleaner and more sustainable future. This study draws insights from key industry players such as DNV, Chemical Market Analytics, S&P Global Commodities Insights, The Methanol Institute, and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping and, methanol.org, each contributing invaluable information to propel the maritime sector towards a future characterized by environmental stewardship and operational efficiency.
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