New methanol plants add momentum to bunker fuel transition

Six new renewable and low-carbon methanol projects were announced in September.

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The pipeline of renewable and low-carbon methanol projects, key to meeting future marine fuel demand, has risen to 53.9 million tonnes, up by 2mt from August, according to the Methanol Institute.

Six new production plants were announced last month, including four in China, one in Türkiye, and one in South Korea, adding to the growing base of supply that could support methanol bunkering in key regions.

"This steady climb reflects stronger commitments from developers, investors, and shipping companies who are putting real weight behind the transition to cleaner fuels," the Institute said.

Power-to-methanol (53%) and biomass gasification (40%) remain the dominant technologies, with around 98% of renewable hydrogen for methanol production expected to be produced on-site within plants.

Operational and post-FID renewable methanol capacity has reached 4.5mt, which is nearly double than last year, indicating stronger green fuel availability for shipping in the coming years.

By Gautamee Hazarika

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