Methanol: not just a flavour of the month

During October, South Korean and Chinese shipyards signed orders to build 18 ultra-large container ships (ULCSs) that will be powered by two-stroke, methanol dual-fuel engines. These deals were inked by major liner companies AP Møller-Maersk, COSCO Shipping and OOCL.

Don’t be so quick to dismiss these orders as outliers. Methanol is not just the flavour of the month; it is very much here to stay.

While box-ship owners account for the lion’s share of 60 newbuild orders — 47 methanol dual-fuelled ships — other vessel types, ranging from tugs to tankers, are opting for methanol. By number of vessels, methanol dual-fuel orders accounted for almost 3% of newbuilds. Some 22 vessels are in operation, mostly chemical and product tankers that carried methanol as a cargo, according to DNV Alternative Fuel Insights. While representing a tiny fraction of the global fleet, the recent surge in newbuild orders represents a step-change for the market.

The latest to throw its hat in the ring is Disney. The ‘House of Mouse’ jumped on the methanol bandwagon as a pathway to more sustainable operations in November with its acquisition of the cruise liner Global One, which when completed at its German shipyard will be converted to operate on methanol.

“Among the future fuel contenders, methanol has emerged as a short-term choice with a long-term role to play,” said Methanol Institute chief executive Greg Dolan in his keynote address at the ABS Methanol Summit in London, held in November.

“The interest in methanol for newbuilds reflects the fact that ammonia is viewed as far more difficult to implement safely”

Explained Mr Dolan: “Shipowners recognise that methanol provides them with huge flexibility in introducing a low-carbon, low-pollution liquid fuel, which is the closest to a drop-in that is available to the market today. This means lower upfront capex costs, whereas choosing LNG as a fuel attracts a considerable premium.” Continued Mr Dolan: “The recent interest in methanol for newbuilds reflects the fact that ammonia is viewed by many observers as far more difficult to implement safely and sustainably and regulatory approval may still be many years away.”

Two-stroke engine technology is well proven in the sector — MAN Energy Solutions has accumulated hundreds of thousands of running hours on its ME-LGIM engine platform over the last six years and four-stroke engine options are growing. The first application of methanol as a marine fuel was in 2015 on the ropax vessel Stena Germanica. The co-operative project involved the conversion of the vessel’s four-stroke engines by Methanex Corp, Stena Line, Wärtsilä, Lloyd’s Register, the Port of Gothenburg, and the Port of Kiel. 

Among the key features making methanol attractive as a marine fuel is that it is liquid at ambient conditions, which simplifies fuel tank design and minimises capex, and is widely available now. Additionally, conventionally powered existing vessels can be more easily retrofit at a much lower capex to burn methanol than LNG. This will provide a pathway to lower CO2 and greenhouse gas emissions for the existing global fleet.