Methanol in Ports and on Ocean Routes: Technological Opportunities and Financial Threats
Photo: WESTERN BALT
By The Klaipėda Port Authority launched a project this year aimed at preparing the Port of Klaipėda for the growing demand for alternative marine fuels and developing eco-friendly shipping corridors in the Baltic Sea. A vessel with a tank capacity of 800 tons will be built for bunkering eco-methanol. The Klaipėda Port Authority is implementing this project with 14 partners as part of the H2Deri@BSP project.
OOCL recently announced the addition of a new container ship, the OOCL Grace, to its fleet, capable of running on methanol for its main engine. This is the second 24,000 TEU vessel (399 m long and 61 m wide) with dual-fuel propulsion, capable of burning either marine fuel or methanol.
Methanol is cited as a fuel that meets the requirements for significant decarbonization of shipping. Many innovators are opting for methanol, despite its energy-efficient performance in powering main engines with gas or traditional marine fuels. The trail has been blazed in Gdańsk. Over 10 years ago, Remontowa, commissioned by Stena Line, installed a methanol-burning system for the Stena Germanica’s engines. The ferry was introduced in 2015 on the Cologne-Gothenburg route, with the ability to bunker methanol from tankers in both ports. The propulsion system was developed by Stena Teknik and supplied by Wärtsilä.
Methanol on a Government Drip
Many countries are working on the wider implementation of methanol. China has a long-term strategy and pilot programs to introduce low-emission fuels into shipping. The efforts are multifaceted. “For example, in 2025, the country’s National Development and Reform Commission (NDRC) introduced a national investment program that provides up to 20% public co-financing for low-emission demonstration projects,” as listed in the “DNV Maritime Forecast to 2050” report.
The Chinese government is specifically supporting research that will enable the commercialization of jet fuel (SAF), green methanol, and fuels produced from captured CO2. The latter is related to the possibility of carbon capture, utilization, and storage (CCUS).
DNV notes in its latest report that “In the United States, tax credits and incentives for the use of clean hydrogen are being introduced.” The support system is provided for in the Inflation Reduction Act (IRA). This document provides limited support for the production of low-emission fuels.
For maritime transport, it is important to maintain support for the consistent implementation of the EPA Clean Ports Program. It provides direct support for the implementation of alternative marine fuels and the construction of the necessary infrastructure for their use.
A significant technical advantage is that ships designed to carry methanol can also burn ethanol, a fuel with similar properties. This provides flexibility in the use of fuels for ship propulsion.
ZEMBA on Methanol
Private investors are also taking steps to introduce innovative methanol-based solutions. An example is the Zero Emission Maritime Buyers Alliance (ZEMBA) program. This program leverages freight demand from cargo owners and uses this revenue to support the implementation of low-emission fuels. The second ZEMBA tender focused on e-fuels and resulted in two projects.
Development of the alternative fuel engine fleet by 2026. Source: “DNV Maritime Forecast to 2050.”
ZEMBA is an initiative of Amazon, Patagonia, and Tchibo, along with Beiersdorf, Brooks Running, Green Worldwide Shipping, IKEA, Nike, Poly Medicure Ltd., and Sport-Thieme. They aim to implement e-fuels to such an extent that, initially, cargo will be transported 20 billion nautical miles by sea within three years.
Some members have committed to extending this period to five years. As a result, total greenhouse gas emissions will be reduced by at least approximately 120,000 tons. metric tons, starting in 2027 – ZEMBA members announced in December 2025.
From December 2025, Hapag-Lloyd will use e-methanol on large dual-fuel methanol containerships on the transoceanic route, and North Sea Container Line (NCL) will use e-ammonia on the world’s first containership with an ammonia-compatible engine – the Yara Eyde (1,300 TEU). The Yara Eyde (currently under construction in Qingdao Yangfan, China) will be used on the Northern European route (ZEMBA, 2026). ZEMBA has committed to contributing to the fuel costs.
Sino-German Methanol Deal
To implement its strategy of introducing methanol-powered vessels, Hapag-Lloyd has entered into an agreement with Goldwind, a global strategic partner in clean energy based in Beijing, China, for the delivery of 250,000 metric tons. Tons of green methanol per year. The green methanol will be a blend of bio- and e-methanol, which will reduce greenhouse gas (GHG) emissions by at least 70% and comply with all applicable sustainability certification requirements, according to the Hapag-Lloyd Management Board.
“This will bring us one step closer to our goal of achieving net-zero fleet emissions by 2045. Our ambition is and remains to play a leading role in the transformation of the liner shipping industry,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.
By 2030, Hapag-Lloyd aims to reduce the fleet’s total greenhouse gas emissions by approximately one-third compared to 2022. Compared to conventional fuels, the ordered quantity of green methanol could save a total of up to 400,000 tons of CO2e emissions per year in fleet operations.
Goldwind plans to build a new green methanol plant adjacent to its existing project in Hinggan League, China. Goldwind will also deliver an early batch, scheduled for 2026. “We are honored to have concluded this agreement with Hapag-Lloyd. This collaboration once again demonstrates that Goldwind can earn the trust of a major shipping company,” said Wu Gang, CEO of Goldwind.
DNV identified locations where at least one low-emission fuel bunkering operation took place between 2015 and April 2026. Bunkering operations using clean, low-emission fuel or a blend of both were included. Low-emission fuel bunkering infrastructure is concentrated in Europe and East Asia. DNV identified that various types of low-emission fuels are bunkered in nearly 90 seaports.
Methanol (both e-methanol and biomethanol) has been bunkered in at least 16 seaports, primarily in East Asia and some Western European ports. Bunkering of low-GHG ammonia has been reported in three ports in East Asia.
Map of methanol producers. Source: EMSA: Study on the use of ethyl and methyl alcohol as alternative fuels in shipping.
Methanol in port
Shipowners are reluctant to invest in systems that ensure a complete transition away from fossil fuels and towards methanol as the primary fuel. Bringing a methanol-powered ship into port costs an additional €400,000. This is the cost of building a pumping station on the quay, such as the one in the Port of Gothenburg for the Stena Line ferry.
EMSA has calculated that small product carriers are needed for safe and efficient ship-to-ship bunkering. “Most bunker barges are classified as product carriers and could be used to transport methanol and ethanol. The cost of converting a bunker barge to run on methanol is estimated at €1.5 million,” reports EMSA: Study on the use of ethyl and methyl alcohol as alternative fuels in shipping.
Bunkering from an onshore storage facility is similar to loading methanol product tankers. It is a routine process, and appropriate procedures and guidelines are in place. According to an EMSA study, the cost of constructing a 20,000 m³ methanol storage tank is estimated at approximately €5 million.
This includes the construction of a facility for loading methanol from the product tanker to the storage tank. Additionally, facilities for safely pumping methanol from the storage tank to the bunker tank must be constructed.
Despite these costs, port authorities are choosing to invest in methanol bunkering facilities. The Maritime and Port Authority of Singapore (MPA) has issued licenses for the supply of methanol as marine fuel at the Port of Singapore.
This is aimed at implementing large-scale methanol bunkering and “realizing Singapore’s ambition to become a sustainable multi-fuel bunkering hub,” MPA stated in a press release. The licenses will be awarded to Global Energy Trading, Golden Island, and PetroChina International (Singapore). These three companies were selected from 13 applicants. The licenses are valid from January 1, 2026, to December 31, 2030.
Methanol “across the border”
In May of this year, in Rotterdam, the container ship Eco Levant, owned by X-Press Feeders, was refueled with ethanol. This was one of the first times in the world, and the first time in Rotterdam, that a bunker ship delivered ethanol to a ship. The ship’s engines are powered by a blend of ethanol and methanol. The fuel mixture consisted of 90% biomethanol and 10% ethanol. Both fuels were delivered separately by a single product ship, operated by Tankmatch, the Rotterdam Port Authority announced.
In August of this year, the Port of Ningbo-Zhoushan conducted the largest ship-to-ship bunkering operation of green methanol in Zhejiang. COSCO SHIPPING Libra has refueled approximately 5,500 tons of green methanol at the Ningbo-Zhoushan port. This is a new regional record for the bunkering of a commercial vessel with methanol.
The Klaipėda Port Authority, operating across the border, is also active. This year, it launched a project aimed at preparing the Klaipėda port for the growing demand for alternative marine fuels and developing eco-friendly shipping corridors in the Baltic Sea. It is planned to build a vessel with a tank capacity of 800 tons of green methanol. The Klaipėda Port Authority will implement the project with 14 partners as part of the H2Deri@BSP project.
The activity and determination of some shipowners and port authorities in introducing methanol is impressive. They are focusing on introducing methanol, despite the fact that decarbonization costs are still high and the payback period for this innovative investment is long. However, progress in introducing methanol into service is worth closely monitoring. This innovation could point the way forward, as EMSA noted over 10 years ago.
Procesy produkcji metanolu, LNG i paliw konwencjonalnych. źródło: EMSA: Study on the use of ethyl and methyl alcohol as alternative fuels in shipping.