The Week in Alt Fuels: Hope & proof

A series of breakthroughs this week offer hope that shipping's green fuel adoption is no longer just a pipe dream, but within reach.

PHOTO: Technician holds the first batch of e-methanol produced at European Energy's Kassø facility in Denmark. European Energy

There is lots of uncertainty around the shipping industry's transition to alternative fuels. Will the technology be ready? Will the fuels be scalable? When will new infrastructure be in place, and will bunkering be affordable?

The scepticism understandable. But a wave of positive developments this week offers hope that change could be just around the corner.

Swiss marine engine maker WinGD has made a breakthrough by successfully testing its ammonia-capable marine engine at 100% load capacity, using only 5% pilot fuel. This suggests that ammonia could potentially power ships with minimal fossil fuel dependence. Commercial roll-out starts from June this year.

While it's still too early to predict, the road to zero-carbon shipping seems more attainable if ammonia dual-fuel engines can operate efficiently at these low levels of pilot fuel. And the pilot fuel doesn't need to be fossil, it can be biofuel which would reduce its carbon footprint further.

In Denmark, European Energy just produced shipping’s first dedicated batch of e-methanol at its Kassø plant. For shipping, e-methanol is no longer just a concept. It’s actually happening. Production capacity is now expected to scale up to 42,000 mt/year by June.

And with A.P. Moller-Maersk onboard as an offtaker, its methanol-capable fleet could showcase e-methanol’s emissions reduction potential as early as this year.

Japanese shipping firm Mitsui O.S.K. Lines (MOL) successfully supplied its first batch of green hydrogen, produced onboard a wind-powered yacht, to an onshore location in Tokyo. Small-scale? Yes. But this is a proof of concept that green hydrogen can be produced at sea using wind power.

This kind of technology could potentially lower green hydrogen production costs compared to onshore plants by eliminating the need for extensive land-based infrastructure, reducing electricity transmission losses and leveraging wind energy directly at sea. In turn, this could bring down the cost of producing fuels that use green hydrogen as a feedstock.

Meaningful progress has been made in the regulatory landscape. This week, Singapore introduced methanol bunkering standards. Commercial uptake of methanol could be sped up now that Rotterdam and Singapore - the world's two biggest bunkering hubs - have both implemented methanol bunkering standards.

The German ports of Bremen and Bremerhaven have also introduced methanol bunkering guidelines.

Let’s not look at these developments as isolated wins. They are signs of real progress. Technology is advancing, production is increasing and infrastructure is expanding. These developments signal that shipping's green fuel adoption is no longer just a pipe dream, but a tangible reality.

But momentum alone isn’t enough. To truly accelerate the transition, a strong regulatory push is needed. The IMO’s mid-term measures, likely to be finalised this year, could make all the difference. Green fuel's first-mover Fortescue has called for a $100/mtCO2-equivalent levy, a move it believes can make low- and zero-emission fuels more competitive with the fossil ones.

In other news, US-based biofuels firm WasteFuel has partnered with Turkish integrated waste management company ITC to build a bio-methanol plant in Ankara, Türkiye. A final investment decision is expected in early 2026, WasteFuel said. It has not disclosed the expected production capacity.

Australia-based research centre Blue Economy Cooperative Research Centre (CRC) has launched a green hydrogen production and research facility in Tasmania. The facility is expected to produce about 262 kg/day of green hydrogen. This is enough to run two 22-metre hydrogen fuel cell-powered passenger ferries carrying 75 people/day, Blue Economy CRC claims.

By Konica Bhatt

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