EMEA News
Widespread Adoption of Methanol Bunkers Unlikely, Say Industry Players
The use of methanol as marine fuel in Europe is unlikely to be a widespread solution for reducing emissions, at least in the near future, Platts reports, based on interviews with participants at the International Methanol Producers Association conference in Porto, Portugal last week.
"We are not upbeat on marine fuels," said a European producer.
"There are several pricing issues, the cost of retrofitting the ship, practical and convenient storage of methanol."
The producer said no storage for the fuel is being built in the Nordic region, and an investment in such facilities seems questionable since other issues remain around the use of methanol.
The only company to invest in developing the ability to use methanol bunkers is Methanex, which produces methanol and has commissioned dual-fuel vessels capable of running on it through its subsidiary, Waterfront Shipping Co. (WFS).
A Methanex source said the company thinks the fuel may fill a gap in the industry, given problems associated with other methods of reducing emissions.
"Scrubbers have too many complications, like chemical disposal, plus we expect there to be more legislative changes ahead that would mean scrubbers can only comply with for the short-term," the sources said.
"Methanol as a marine fuel is not tried and tested yet, but once you see that it works, it would spur further investment in this area."
Swedish company Stena will begin operating the ferry Stena Germanica, which has been converted to run on methanol, in 2015, and, depending on its results, the company may convert up to 25 other ferries to use the fuel.
Compared with liquefied natural gas (LNG), equipment costs are about 20 percent less for retrofitting vessels to run on methanol.
DNV GL, which is working with builders and designers on the WFS vessels, said last month that it had provided suggestions to help make the vessels as safe as oil-fuelled ships.
