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Green methanol is identified as the most practical low-carbon fuel for international shipping, with up to 96% CO₂ reduction over a ship’s lifecycle.
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It is preferred over hydrogen and ammonia due to its ease of handling, retrofit potential, and technical readiness.
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Despite promise, high costs and limited availability remain key challenges, prompting calls for IMO regulations and CO₂ pricing to support adoption.
A new report by the Institute of Maritime Energy Systems at the German Aerospace Centre (DLR), commissioned by Greenpeace, finds that green methanol is currently the most promising synthetic fuel to drive international shipping toward climate neutrality.
According to Clean Energy Wire, green methanol can reduce lifecycle CO₂ emissions by 96%, significantly cutting the climate impact of a sector that still relies heavily on fossil fuels and accounts for around 3% of global greenhouse gas emissions, as well as substantial nitrogen and sulphur oxide pollution.
Usage of Methanol
The report compared multiple decarbonization options based on safety, storage and bunkering, emissions, technology readiness, and regulatory feasibility. Methanol stood out for several reasons:
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Easy to handle compared to hydrogen or ammonia.
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Proven technical feasibility for onboard usage.
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Existing marine engines can be retrofitted rather than replaced.
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Green methanol production uses renewable hydrogen and sustainable CO₂, sourced from biogenic sources or direct air capture (DAC).
Electrification is not considered viable for deep-sea shipping due to the impractical size and weight of batteries needed.
Challenges Remain
Despite its advantages, green methanol adoption faces hurdles:
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It requires fuel tanks twice the size of conventional ones for a similar range.
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Currently scarce on the market and remains expensive.
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Germany alone could require up to 5.7 million tonnes annually—a significant supply challenge.
No One-Size-Fits-All Fuel Future
The report also warns against expecting a single fuel to dominate the shipping sector. Instead, it envisions a multi-fuel future, with fuel choices varying by ship type, trade route, and technical constraints.
Greenpeace’s Position
Greenpeace called on the International Maritime Organization (IMO) to:
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Implement binding quotas for alternative fuel adoption.
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Establish a CO₂ pricing mechanism that recognizes the climate advantage of green methanol.
The IMO’s upcoming meeting in London this week will be pivotal in shaping regulatory pathways to decarbonize shipping by 2050.
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Source: Clean Energy Wire
