In the quest for cleaner fuel alternatives within the maritime industry, methanol has emerged as a strong contender for deep-sea shipping. Over 450 methanol-capable vessels are currently either in operation or on order, and technological advancements have made methanol systems viable across major ship types.
According to DNV's recent white paper, "Methanol fuel in shipping," the development of methanol-fuelled engines and technical solutions has reached a notable level of readiness. In addition, existing global production infrastructure and a growing number of bunker fleets support its broader acceptance.
Low-GHG methanol production
China leads the global push towards low-GHG methanol, accounting for 43% of the planned production
China leads the global push towards low-GHG methanol, accounting for 43% of the planned production capacity worldwide. Nevertheless, the growth of methanol as an alternative fuel will depend heavily on a multifaceted interplay of regulatory, economic, and operational considerations within the industry.
Despite enthusiastic investments, certain challenges such as cost and availability remain pertinent to all alternative fuels, including methanol.
Innovative and scalable solutions
Knut Ørbeck-Nilssen, CEO Maritime at DNV, emphasised the importance of exploring diverse solutions for a low-carbon maritime future. "As the maritime industry explores pathways to a lower-carbon future, it is important to consider a range of practical and scalable solutions. There is no one-size-fits-all answer, and different shipping segments and geographies will require different approaches," he stated.
Methanol's potential stems from its reliance on established technologies and existing infrastructure, making it a viable alternative fuel option.
Bio- and E-methanol pathways
Methanol is considered an environmentally favourable option due to its sulfur-free nature, minimal soot production, and reduced NOx emissions compared to fuel oil. Specific bio- and e-methanol production methods can achieve low or even negative lifecycle emissions.
Its compatibility with existing port setups and interim bunkering solutions offers shipowners simplified transition processes, although cost and supply remain significant hurdles.
Regulatory influences
The price of bio-methanol in 2025 is anticipated to be around USD 2,500 per tonne MGOe, approximately triple
The price of bio-methanol in 2025 is anticipated to be around USD 2,500 per tonne MGOe, approximately triple the cost of marine gas oil, with global production currently at 2.2 million tonnes against a potential demand of up to 60 million tonnes by 2040.
DNV's report outlines four demand scenarios, highlighting that regulatory frameworks such as the IMO Net-Zero Framework and FuelEU Maritime could play a crucial role in promoting adoption at scale.
DNV’s analytical services
Marius Leisner, Senior Principal Consultant at DNV, noted, "From a technical perspective, methanol-fuelled engines have demonstrated high reliability, with industry data indicating that modern dual-fuel engine designs have accumulated more than 600,000 operating hours on methanol."
Methanol offers operational flexibility as dual-fuel engines can use methanol, biodiesel, conventional fuels, and with slight modifications, ethanol. DNV's Fuel Selector service and Alternative Fuels Insight platform provide shipowners with data-driven guidance for compliance costs and transition planning.
