HMM and Costa focus on methanol supply partnerships

The announcement between Costa Cruises and Proman, the world’s second largest methanol producer, was made on 16 February, related to an unspecified expansion in the supply of sustainable methanol. Costa Cruises noted that this would pave the way for the retrofitting of existing vessels to operate on methanol, as well as investment in further methanol-fuelled newbuilds. 

The HMM announcement related to the signature of agreement with Proman, European Energy as well as Hyundai Corporation and Thailand-based supplier PTTEP to eventually supply green methanol for its nine methanol dual-fuel 9,000-teu newbuildings. 

As part of the agreement, HMM will conduct a feasibility study with each partner to procure various types of methanol in HMM’s main bunkering ports and, subsequently, will collaborate to produce green methanol as part of developing this carbon-neutral alternative fuel.

Methanol supplier Proman notes that greater volumes of low-carbon methanol will be blended into the marine fuel pool to drive down carbon intensity as supply expands. Methanol produced from natural gas brings an immediate CO2 reduction which increases to over 90% for methanol made using renewable electricity or sustainable biomass. This pathway makes methanol one of the attractive alternative fuels for shipowners seeking both immediate and long-term emissions reductions.

The Motorship notes that green methanol (produced from hydrogen captured via electrolysis) is not expected to become freely available at major bunker ports in the coming period. This is encouraging major container operators to establish supply relationships or invest directly in supplies to assuage concerns about fuel availability for methanol-fuelled newbuildings. Maersk has announced a series of methanol partnerships to ensure supply for its methanol-fuelled newbuildings, including European Energy and Proman, with the intent of sourcing at least 730,000 tonnes per year by the end of 2025. 

CMA CGM Group announced plans in September 2022 to invest in the industrial production of new fuels, as part of the focus of a USD1.5bn Special Fund for Energies.