26/03/13
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
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