The number of projects expected to produce bio- and e-methanol — seen by some as a future marine fuel — is rising steadily, according to industry trade association the Methanol Institute (MI).
The MI is tracking 130 projects planning 16mn metric tonnes (t) of production capacity by 2027 and 19.5mn t by 2028, up from two two years ago when MI was tracking 80 projects with 8mn t capacity by 2027.
About 6.5mn t of the capacity is already operational, in construction or the engineering stages, according to MI. About 60pc of the projects are for e-methanol and the rest are for bio-methanol. E-methanol is produced using renewable electricity while bio-methanol is produced using biomass.
"The anticipated demand for methanol as a marine fuel is driving much of the interest in expanding the supply of methanol from conventional and low carbon feedstocks," said MI.
There are 251 methanol-fueled vessels on the water or on the order book, including container ships, chemical tankers, ferries, car carriers and bulk carriers, according to MI. A large 16,000 twenty foot equivalent unit (TEU) container ship can burn 35,000-40,000t/year of methanol, said MI.
Methanol has about half the energy content of an equivalent volume of very low-sulphur fuel oil (VLSFO). Thus, the 19.5mn t of methanol production expected by 2028 would displace about 9.75mn t of VLSFO, or less than 5pc of the 200mn t/year of total global marine fuel demand.
Bio-methanol is also currently prohibitively expensive. Bio-methanol averaged at $2,231/t VLSFO-equivalent in February in Amsterdam-Rotterdam-Antwerp, about four times the price of VLSFO, Argus assessments showed.
