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Methanol bunkering: from niche trials to global maritime decarbonisation pathway
7/1/2026
8 min read
Feature
Methanol is rapidly emerging as one of the most promising low-carbon marine fuels of the next two decades. Driven by tightening climate regulations, a surge in dual-fuel ship orders and aggressive investment in green methanol production – particularly in China – the industry is approaching a pivotal moment, reports Energy Institute Asia-Pacific (APAC) Managing Director Peter Godfrey FEI. This article unpacks the state of methanol bunkering today, the carbon equation behind fossil versus green methanol, the infrastructure bottleneck, and the geopolitical dynamics behind the rapid rise of methanol-fuelled shipping.
Even though more than 450 methanol-capable ships are already on the water or in shipyards, most still run overwhelmingly on traditional heavy fuel oil (HFO). The reason is simple and structural – the global methanol bunkering network remains far too sparse to support full commercial use.
As ports begin to gear up, Singapore – the world’s largest bunkering hub – has taken a decisive step with its first full ship-to-ship methanol refuelling operations. The race is now on to scale supply chains, harmonise safety standards and ensure that methanol delivers its promised emissions benefits. With green methanol still costing roughly three times as much as HFO, and fossil-based methanol offering little improvement in carbon intensity, the sector faces both momentum and complexity.
Methanol as a marine fuel: why the sudden acceleration?
Methanol’s rise in shipping has been striking. A decade ago, it was barely discussed outside niche pilot projects. Today it is one of the top three alternative fuels – alongside LNG and ammonia – undergoing rapid commercialisation.