Panel debate highlights challenges in methanol infrastructure

The shipping industry is embracing methanol as a promising alternative fuel for decarbonisation, yet significant hurdles in production, and infrastructure persist as emphasised by a panel discussion at the Motorship Propulsion and Future Fuels Conference in Hamburg.

Key stakeholders in the sector, including MPC Container Ships, the Methanol Institute, and SRC Group, presented arguments to address these challenges, each contributing unique insights and innovations.

Methanol’s potential as a marine fuel lies in its reduced tank-to-wake emissions compared to conventional diesel. However, supply uncertainties raise questions of whether vessels will need to operate on grey methanol. Well-to-wake greenhouse gas (GHG) emissions remain a critical concern. As Kjeld Aabo, Maritime Transport Advisor at the Methanol Institute, explained, when using grey methanol, ‘If you look at tank-to-wake, there may be a positive reduction of CO2 compared to diesel, but if you take from well-to-wake, it’s still a question mark.’

The conference session highlighted that global methanol production is concentrated in China, which dominates both production and consumption. While some facilities in Europe exist, production capacity in the Americas and Africa remains negligible. This geographical imbalance raises questions about global supply security and dependency.

Aabo used Maersk, a leading advocate for methanol-powered vessels, as an example to highlights the scale of the challenge. It estimates a need for 6 million tonnes of renewable methanol by 2030 to fuel just 25% of its fleet. The current capacity of renewable methanol facilities — either operational or under construction — is currently insufficient to meet growing global demand, even with new projects emerging.

MPC Container Ships (MPCC) is among the companies leading the adoption of methanol. With over 60 vessels in its fleet, MPCC is integrating the International Maritime Organization’s decarbonisation goals into its operations. The company has committed to reducing its GHG intensity by 35.5% by 2030 and achieving net-zero emissions by 2050.

To meet these targets, MPCC is delivering its first methanol-fuelled vessels, including the Project Greenbox newbuild, a 1,300 TEU ship powered entirely by methanol. However, challenges remain. Sebastian Ebbing, MPCC’s Managing Director, noted: ‘The key challenge was really finding green methanol. Even finding methanol at all was the challenge. Current supply will by far not be sufficient for 15 years of operation in this trading pattern.’

Nevertheless, sourcing e-methanol remains a significant hurdle, compounded by limited bunkering infrastructure globally.

Innovative solutions are emerging to address methanol’s high storage requirements. Hannes Lilp, CEO of SRC Group, introduced the company’s Methanol Superstorage technology, which increases fuel tank capacity by 85%, offering a substantial improvement in efficiency and emissions reduction. However, challenges remain as methanol requires more than double the storage volume compared to heavy fuel oil.

Aabo emphasised the role of government and regulatory bodies in fostering methanol’s growth. ‘Governments and other authorities like the IMO and EU must really go and make it better to produce methanol,’ he stated, stressing the need for incentives to spur investment in production and infrastructure.

The development of ‘green corridors’ is one promising initiative, targeting major shipping routes with coordinated efforts to build supply chains and regulatory frameworks. ‘In these big corridors, you have authorities, pilot projects, and OEMs working together to build up supply between two spots,’ Aabo explained.

While methanol offers substantial promise, its adoption requires coordinated efforts across production, supply chain development, and regulatory support. The panel discussion agreed that the maritime industry must balance investments in green methanol with the potential interim use of grey methanol to build infrastructure and experience.

‘The challenge today is immense, but we decided to move forward because of a very clear operational area and committed stakeholders,’ Ebbing noted.

As the clock ticks toward 2030 and 2050 decarbonisation milestones, methanol’s role in maritime shipping will depend on overcoming its supply and infrastructure challenges through innovation, collaboration, and policy support.