Methanol Reaches High Readiness, but Costs Slow Wider Bunker Uptake: DNV

DNV estimates that the methanol-fuelled fleet could consume more than 15 million mt/year of methanol by 2030. Image Credit: DNV

Methanol has reached a 'high readiness level' as a marine fuel, but DNV says its wider use in bunkering is still being held back by cost and supply challenges.

The fuel has made steady progress in recent years, classification society DNV said in a report published on Monday.

Safety rules, fuel systems and engine technology are now in place, and more than 450 methanol-capable ships are either operating or on order.

DNV also estimates the methanol global fleet could have a methanol bunker consumption capacity of almost 15 million mt/year by 2030.

But this technical progress has yet to translate into significant bunker demand.

Low-GHG methanol production currently stands at about 2.2 million mt/year, and only small bunker volumes have been supplied so far, around 1,600 mt in Singapore last year and 11,800 mt in Rotterdam in the first nine months of 2025.

Cost remains the main reason for this slow uptake.

Bio-methanol price in the ARA has fallen from about $3,500/mt MGOe in 2022 to around $2,500/mt MGOe in 2025, while fossil methanol has dropped from roughly $1,000 to about $700/mt MGOe over the same period.

Both, however, remain high compared with conventional marine fuels.

Looking ahead, DNV estimates that bio-methanol could cost between $1,200-2,050/mt MGOe in 2050 as green methanol supply increases.

"This is significantly below current bio-methanol prices and reflects that advances in production technology, benefits of scale, and cost reduction for input factors could reduce fuel costs," the report states.