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Oceans North-Arup Study Examines How E-Methanol Could Supply Vancouver Shipping
A report by non-profit organisation Oceans North and engineering firm Arup has examined how e-methanol can be produced near the Canadian Port of Vancouver and supplied as bunker fuel.
The paper sets out a high-level scenario in which e-methanol production would be developed gradually over several decades, as per the report released on Monday.
While the study does not propose a specific project or identify a site, it provides a broad picture of a potential e-methanol supply chain, including projected bunker demand, production timelines, and infrastructure requirements.
Under the scenario used in the study, initial production of about 50,000 mt/year would not begin until the early 2030s. Output could then be increased in stages, reaching up to 200,000 mt/year by around 2040.
At that level, the fuel could cover demand from roughly 10 methanol-fuelled bulk carriers trading between North America and Asia, as well as two cruise ships operating on the Vancouver-Alaska route, the report said.
How Much Would E-Methanol Cost?
The study estimates that e-methanol made using renewable electricity, green hydrogen and captured CO2 could cut emissions by up to 90-100% compared with HSFO, but it also points to major hurdles.
These include the need for large amounts of renewable electricity and water, access to industrial land near the port, and fuel costs that remain far higher than conventional bunkers.
The study estimates the levelised cost of e-methanol production at around $1,860/mt.
"The LCOP takes into account the CAPEX, OPEX and the weighted average cost of capital (WACC)," the report states.
"The levelized cost of production based on the above CAPEX and OPEX is $1,860 USD per tonne of methanol produced."
It estimates that building the e-methanol production plant could cost about $731 million.
The authors stress that the work is intended to inform discussion around future fuel options, rather than signal a development decision, and say long-term offtake agreements and policy support would be needed for e-methanol to move beyond the discussion stage.
