In a new report, DNV states that methanol has reached a high readiness level as a marine fuel. However, challenges remain, both in terms of cost and the availability of sustainably produced methanol.

According to DNV, 232 vessels running on fuels other than diesel oil were ordered during the first eleven months of this year. The majority of these—67 percent—are LNG-powered vessels, while 20 percent can run on methanol. This means that there are currently a total of 450 methanol-powered ships either in operation or under construction.

While the technology is mature, DNV states that there are also strong conditions for broader use of methanol because there are existing global production facilities, storage infrastructure, and a growing bunker fleet. In addition, there is strong interest from industry, with several actors—above all Chinese investors—investing in low-greenhouse-gas methanol production. But, as with all alternative fuels, regulatory, economic, and operational factors will determine methanol’s success in the maritime sector.

Knut Ørbeck-Nilssen, CEO of Maritime at DNV, highlights the need for flexibility in the maritime energy transition:
“There is no one-size-fits-all answer, and different shipping segments and geographies will require different approaches. Methanol is one option that draws on established technologies and infrastructure, and it is encouraging to see the industry’s growing interest in a variety of alternative fuels,”

The report notes that methanol can offer major environmental benefits compared with traditional marine fuel oil: no sulfur, almost no soot, and significantly lower nitrogen oxide emissions. Bio- and e-methanol can even achieve negative lifecycle emissions. Methanol also has other advantages. With minor adjustments, methanol-powered vessels can run on ethanol, giving shipping companies greater flexibility in their future fuel strategies. Since methanol is compatible with existing port infrastructure, it also allows operators to use conventional storage and handling systems.

Unlike LNG, ammonia, and hydrogen, methanol is liquid at normal temperature and pressure. As a result, bunkering is fundamentally similar to current systems. However, methanol is classified as a chemical cargo, which means that ordinary heavy-fuel-oil bunker vessels cannot be used without modifications. Large-scale methanol bunkering instead requires dedicated bunker barges and ship-to-ship transfers. The first such bunkering was carried out in Gothenburg in January 2023, when Stena Germanica was bunkered by the chemical tanker Stolt Sandpiper. Before that, Germanica had only received methanol delivered by truck. Since then, vessels have also been bunkered with methanol from other ships in ports such as Antwerp, Rotterdam, Shanghai, Ulsan, and Singapore.

But, as noted, there are also other challenges—and major ones. According to DNV, the price of bio-methanol is three times higher than diesel oil, and today’s global production of 2.2 million tonnes is far from the 60 million tonnes projected to be needed by 2040. DNV points out that international regulations such as the IMO’s Net Zero framework and the EU’s FuelEU Maritime will be crucial for driving both investment and adoption.

To the report Methanol fuel in shipping