Marine fuels

Q&A: Exolum on launching UK biomethanol bunkering

Q&A: Exolum on launching UK biomethanol bunkering

London, 13 March (Argus) — Biomethanol is gaining traction as a marine fuel as shipowners work to cut lifecycle greenhouse gas (GHG) emissions. European demand has risen since FuelEU Maritime took effect last year, requiring vessels calling at EU ports to reduce the GHG intensity of their energy use — a target that rises from 2pc today to 6pc in 2030 and 80pc by 2050. Rotterdam's biomethanol bunkering volumes reflected this shift, rising by 200pc on the year to 11,800t in 2025. A growing number of operators are turning to methanol-capable fleets, including new dual-fuel ships ordered by companies such as Maersk. Activity is also picking up in the UK, even without a similar maritime mandate. Exolum and Orsted have launched a biomethanol storage and supply service at the port of Immingham, supported by a dedicated 2,700m³ tank and capacity to refuel vessels of about 400m³ every two weeks. Orsted will use the facility to supply its North Sea offshore wind farm support vessels with biomethanol produced by Methanex. Biomethanol is also used in the UK as a gasoline blending component, although consumption has declined since the US–UK ethanol trade agreement signed last year. Argus spoke with Gorka Penalva, Exolum's northwest Europe commercial lead, about the company's plans and market perspective. What specific market signals convinced Exolum that now was the right time to invest in dedicated biomethanol storage and bunkering capacity at Immingham? Biomethanol is one of the first alternative marine fuels where demand, supply and infrastructure readiness are aligning at the same time. It has a high technological readiness level, and existing oil terminal infrastructure can be repurposed with relatively limited modification. At the same time, we are seeing resilient, long-term demand for low-carbon fuels from the global shipping sector, which remains structurally difficult to electrify. For Exolum, the ability to adapt existing assets at Immingham, combined with a strong strategic fit with our energy-transition roadmap and northwest European growth plan, made the investment case compelling. Our partnership with Methanex and Orsted further reinforced that decision by providing supply certainty and a committed launch customer from day one. Biomethanol sales in Rotterdam have increased under FuelEU Maritime. Has the absence of an equivalent UK mandate made commercial planning more difficult? FuelEU Maritime is creating a clear demand signal in the EU by mandating the gradual uptake of lower-carbon marine fuels. The UK does not yet have an equivalent binding framework for international shipping, although it is moving in the same direction through economy-wide greenhouse-gas reduction targets. Long-term policy clarity always helps derisk investment, particularly for infrastructure designed to scale. At Immingham, however, the ability to repurpose existing infrastructure materially lowers the risk threshold. That flexibility allows us to move ahead even in the absence of a UK-specific mandate, while remaining well positioned should policy evolve further. With 60 methanol-capable vessels in operation or on order, how does Exolum see biomethanol demand evolving in UK ports over the next five years? We expect demand for methanol and biomethanol to grow steadily as more dual-fuel vessels enter global service. These fuels are among the first alternatives likely to scale, supported by liner commitments and relatively low conversion costs for existing terminals. Over the next five years, growth in UK ports is likely to be steady rather than exponential, tracking vessel deliveries and early trade routes rather than speculative supply. Given the resilience of green fuel demand through to 2040 and beyond, we see biomethanol becoming an increasingly important part of the UK bunkering mix. Exolum's national footprint — around 20pc of the UK's bulk fuel storage capacity across 10 ports — positions us well to support that evolution. Are you receiving early interest from non-Ørsted shipowners for biomethanol bunkering at Immingham? Yes. The infrastructure has been designed as a commercial offering rather than a single-customer pilot, with capacity available for additional users from day one. We are in discussions with multiple parties exploring biomethanol as part of their decarbonisation strategies. That interest reflects the broader momentum toward alternative marine fuels across the sector. Is Exolum considering establishing similar biomethanol infrastructure at other UK ports? Yes, where customer demand materialises. We operate terminals at 10 major UK ports, which gives us a strong platform to scale green fuel logistics as markets develop. Our ambition is to build a green bunkering network aligned with how fleets, trade routes and green shipping corridors evolve. Immingham demonstrates the model; replication will depend on demand, emerging routes and the clarity of long-term policy frameworks. Rotterdam biomethanol sales have increased to 11,800t in 2025. Do you see Immingham becoming a meaningful competitor, or will the centre of gravity remain in the ARA region? The growth in biomethanol volumes at Rotterdam underlines the structural strength of the ARA region. Scale, liquidity and proximity to multiple end-users continue to make it the natural hub for trading and redistribution. Immingham has clear potential, particularly linked to UK industrial demand and early marine applications, and it can develop into a meaningful regional hub. However, we do not see it as a direct competitor to ARA. In the near to medium term, the centre of gravity for biomethanol will remain in ARA, with ports like Immingham playing a complementary role as volumes grow and use cases expand. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.