Shipping pushes methanol toward readiness

The DNV white paper reports that methanol technologies have reached high commercial readiness, supported by more than 450 methanol-capable vessels in operation or on order and technical solutions now available across major ship types. 

“As the maritime industry explores pathways to a lower-carbon future, it is important to consider a range of practical and scalable solutions,” said Knut Ørbeck-Nilssen, CEO Maritime at DNV.

“Methanol is one option that draws on established technologies and infrastructure and it is encouraging to see the industry’s growing interest in a variety of alternative fuels.”

Multiple advantages

The report highlights several advantages that strengthen methanol’s case as a marine fuel. It is sulphur-free, generates negligible soot and emits significantly less NOx than fuel oil.

Certain bio- and e-methanol pathways can even deliver ultra-low or negative lifecycle emissions.

Its compatibility with existing port infrastructure and reliance on conventional, non-cryogenic bunkering systems could also reduce cost and complexity for shipowners during the transition phase.

Yet adoption challenges remain. Despite rapid investment, led by China, which accounts for 43% of planned low-GHG methanol capacity, global production stands at just 2.2 million tonnes, far below potential demand of up to 60 million tonnes by 2040.

Prices also remain a hurdle, with bio-methanol averaging about US$2,500 per tonne MGOe in 2025.

DNV modelling suggests that regulatory drivers, including the IMO Net-Zero Framework and FuelEU Maritime, will be critical to scaling uptake as the industry evaluates long-term pathways for alternative fuels and methanol’s expanding commercial viability.

Read The Motorship’s special report on methanol