Svitzer to field test MAN methanol engine

Danish tugboat operator and Maersk subsidiary Svitzer will conduct a field test on the dual-fuel methanol MAN 175D engine on a newbuild tugboat under an initial agreement.

Svitzer had opted for the MAN 175D diesel engines to be installed on newbuild tugboats last year, and is now working with German manufacturer MAN Energy Solutions on the development and use of a dual-fuel version of the engine — which will be methanol compatible.

Svitzer's parent shipping firm Maersk currently has two methanol-fuelled vessels — the Laura Maersk and the Ane Maersk — and has another 23 on order, along with offtake agreements for green methanol.

Argus assessed the price of grey methanol on a dob Rotterdam basis at an average of $722.26/t very-low sulphur fuel oil energy density equivalent (VLSFOe) in March, a discount of just under $48/t to marine gasoil (MGO) — which is typically the fuel of choice for tugboats operating in northwest Europe. But the price of biomethanol on the energy density equivalent was at $2,256.22/t, a premium of over $1,486/t to MGO. Maersk expects biomethanol to reduce lifecycle greenhouse gas emissions by about 65pc.

By Hussein Al-Khalisy