GREEN METHANOL-POWERED SHIPS

Bio-methanol is a renewable energy source produced from the decomposition of organic matter, such as waste and residues. Singaporean shipping company X-Press Feeders, the world’s largest independent common carrier, has recently launched Europe’s first maritime feeder network powered by green methanol, and in May 2024, the world’s first large green methanol-enabled vessel by A.P. Moller – Maersk, made her first call in Dubai. We would explore the pros and cons of such a solution, especially compared to ammonia, which does not require CO2 extraction for production and therefore is a more cost-effective and scalable solution. Also, green methanol has lower energy density compared to traditional fuels, which means ships will require more storage space. It is still an expensive solution too. However, as Fuel EU Maritime regulations starting in January 2025 will also mandate the reduction of GHG emission intensity on energy used on board ships, what are the odds of more investment in this solution?