What Is Methanol Fuel? A Decarbonization Solution for Next-Gen Container Ships

Current Status and Challenges of Methanol Fuel

Methanol is gaining attention as a next-generation marine fuel—but what exactly is it?

What Is Methanol Fuel?

Methanol (CH₃OH) is the simplest alcohol.

It’s a liquid at room temperature and easy to handle, already widely used in chemical and pharmaceutical industries.


Now, it’s being spotlighted as a marine fuel.

Global demand is currently about 100 million tons per year, but it’s expected to reach 500 million tons by 2050—with shipping accounting for a significant share.

Benefits and Challenges

Methanol offers strong environmental performance:

Almost no SOx or PM emissions, and up to 80% NOx reduction.

Being a liquid at room temperature, it’s easier to store and handle than LNG or ammonia.

Existing infrastructure is compatible, and crews find it manageable.


However, it only has about half the energy density of heavy fuel oil.

This means twice the fuel is needed, and tank size must increase—which may impact cargo capacity.

Green Methanol Is Key to GHG Reduction

Conventional methanol cuts GHG emissions by only about 10% compared to heavy fuel oil—worse than LNG.

That’s because it’s currently produced from natural gas or coal.


The focus is now on bio-methanol and e-methanol:

Bio-methanol is made using waste like manure or urban garbage, collecting methane along the way.

E-methanol is synthesized from green hydrogen and captured CO₂.

These enable carbon-neutral shipping.

Lifecycle Evaluation Matters

Under the EU’s FuelEU Maritime regulations, GHG emissions are assessed based on “Well-to-Wake”—from production to combustion.

This penalizes fossil-based methanol and favors green methanol.

Some shipping companies are now blending the two to meet the rules.

Barriers to Green Methanol Adoption

The main issue is cost:

Green methanol is 3–4 times more expensive than conventional.

Although production is starting in China and Europe, supply remains limited.


Maersk, for example, has signed a supply deal with Goldwind in China.

But broader adoption needs tech support and subsidies.

Conclusion

Still, to achieve near-zero emissions, widespread adoption of green methanol is essential.

Cost reduction and a stable supply chain are the biggest challenges.


The choice of fuel is becoming a core element of the business model in the shipping industry.