Bio-Methanol Gaining Traction as Alternative Fuel

March 13 ------ This week, CMA CGM and SIPG Energy successfully completed the bunkering of 3,643 tons of bio-methanol for the CMA CGM Osmium at Yangshan Port in Shanghai. This operation marks CMA CGM’s first bio-methanol bunkering worldwide and sets a new national record for the largest single bio-methanol bunkering operation carried out at a Chinese port.

As part of its commitment to achieving Net Zero Carbon by 2050, the CMA CGM Group is preparing to operate around 200 dual‑fuel container vessels by 2031, all capable of running on low‑carbon energy (bio and e-LNG as well as bio and e-methanol).

This month, China’s first methanol dual-fuel bunker vessel, Da Qing 268, completed Hong Kong’s maiden green methanol bunkering operation. The bunker was delivered to CM Hong Kong, the world’s first methanol dual-fuel ro-ro vessel. In addition to the 7,500 dwt Da Qing 268, Wah Kwong manages three other bunkering vessels, including Hai Gang Zhi Yuan, China’s first methanol bunkering vessel.

According to DNV’s white paper “Methanol fuel in shipping” released in December, there are over 450 methanol-capable vessels in operation and on order. China currently accounts for 43% of planned global low-GHG methanol production capacity. Methanol news is not all about China though. This week, Equinor entered into a two-year bio-methanol supply agreement with Wallenius Wilhelmsen. Wallenius Wilhelmsen will receive the bio-methanol bunkers at the Ports of Zeebrugge and Antwerp, positioning the partnership within key European maritime hubs. Supplies will commence in late 2026.

Methanol is sulfur-free, produces negligible soot, and emits significantly less NOx than fuel oil. Certain bio- and e-methanol pathways can deliver very low or even negative lifecycle emissions, and methanol’s compatibility with existing port infrastructure and the availability of interim bunkering solutions may reduce complexity and cost for shipowners.

However, cost and availability remain significant barriers, as is the case for many alternative fuels. Bio-methanol prices in 2025 average around USD 2,500 per ton MGOe, roughly three times the cost of marine gas oil, while global production stands at just 2.2 million tons, far below the potential demand of up to 60 million tons by 2040.

And a study published this week by UCL academics finds that while LNG and methanol use as alternative fuels generate some knowledge spillovers and procedural regulatory learning useful for green ammonia, the main scalable zero emission shipping fuel, these benefits are likely outweighed by capital lock-in and the entrenchment of fossil fuel infrastructure, which then compete with, rather than enable the long-term solution.

Source: marinelink.com