The Port of Long Beach, California, is offering a $1mn award for the first ocean-going vessel to refuel with methanol at its facility.
The Long Beach Harbor Commission, which sets port policies, approved the plan earlier this week. The initiative, described as the first of its kind in the US, aims to boost the use of alternative marine fuels.
"This is about demonstrating that we are serious about creating a North American market for methanol bunkering and giving the industry an incentive to invest," said port chief executive Noel Hacegaba. "We are also seeing how rising fuel costs are strengthening the case for energy diversification and greater energy independence."
Shipping companies competing for the award must meet several criteria, including notifying the port at least 30 days before bunkering methanol in Long Beach and allowing staff from the port to observe and verify the vessel receiving methanol.
Ships must also bunker at least 2,000 metric tonnes of methanol to qualify for the prize, according to the port. There is no supplier involved in this initiative, so participating companies will be expected to arrange their own methanol supply, the port told Argus.
If the challenge proves successful, the facility may launch a similar award for other alternative marine fuels. Methanol was chosen because of strong near-term interest from shipowners and other port authorities, including Singapore and Shanghai, the Port of Long Beach said.
A ship burning methanol produces about 95pc less sulphur oxide emissions, 90pc less particulate matter and 50pc less nitrogen oxide, according to the port.
Refueling a ship with methanol would cost about $1.5mn per call compared with around $1mn for conventional marine fuel. The $1mn award is intended to offset the higher refuelling cost and cover other expenses such as safety procedures and working with fuel suppliers, the port said.
