LNG and methanol investments risk slowing shipping’s shift to zero-carbon fuels - UCL study

Rising LNG and methanol investments may reinforce fossil fuel systems and divert capital from green ammonia, researchers say.

IMAGE: Methanol bunkering operation at Ulsan port in Korea. Itochu.

Investments in LNG and methanol vessels risk slowing shipping’s transition to zero-carbon fuels by locking capital into fossil-based systems, according to a study by researchers at University College London (UCL).

The study assessed whether the two fuels, which are widely promoted as transitional options, could act as stepping-stones toward ammonia. Currently, methanol and LNG are widely regarded as among the most scalable zero-carbon fuels for shipping.

Researchers found that neither currently provides a clear pathway to green ammonia and may instead create "path dependencies" that divert investment away from long-term decarbonisation.

Methanol infrastructure, such as storage tanks and bunkering systems, has little compatibility with ammonia systems, limiting its role as a transition fuel.

LNG offers some technical overlap because both fuels require cryogenic storage. However, the study said this bridge only exists if vessels are designed to be genuinely "ammonia-ready", which is often not the case today.

The researchers warned that continued investment in LNG and methanol could crowd out capital needed to develop ammonia supply chains.

By Gautamee Hazarika

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