Green methanol supply gains traction

Scaling up green methanol supply remains one of the biggest hurdles to its adoption in shipping, a recent Global Maritime Forum (GMF) survey underlined.

The report noted that while methanol’s operational entry has been relatively smooth compared with other future fuels, its growth is still held back by the availability and cost of green molecules.

“Most methanol used on ships to date has been grey methanol, with only small volumes of bio-methanol being bunkered since 2023 and the first volumes of e-methanol being bunkered in May 2025,” GMF reported.

But a series of green methanol projects making headlines this month signal that producers are keen to close the supply gap.

For instance, Houston-based HyOrc is planning biomethanol production plants in the UK, Germany, Portugal and Spain. The first sites in Scunthorpe and Porto have completed front-end engineering design studies and aim to convert municipal waste into 80 mt/day of biomethanol using a hydrogen-based process.

HyOrc says it is targeting a “reliable supply network for shipping companies committed to meeting IMO 2030 emissions targets.”

South Korea’s Biofriends has also entered the field with plans for a 60,000–80,000 mt/year biomethanol facility, sourcing 120,000-cbm of biogas from local producer Cheongmyeong. The company will earmark the initial output for domestic methanol-fuelled vessels.

HAMR Energy is advancing a 300,000 mt/year biomethanol project using forestry residues and green hydrogen in Australia.

Shanghai Electric has already started production at its Taonan facility in China. The plant is currently producing 50,000 mt/year of biomethanol but is set to expand to 250,000 mt/year by 2027. Both the projects are separately designed to meet growing bunker demand from shipping.

In the US, Massachusetts Institute of Technology spin-off Emvolon and Montauk Renewables have formed a joint venture to scale a network of biogas-to-methanol projects. Following a successful demonstration, the partners are targeting a combined capacity of up to 50,000 mt/year by 2030.

The spread of projects across regions shows that producers are positioning themselves to capture future bunker demand. If these facilities come online as planned, they could shift green methanol from today’s pilot volumes to a genuinely scalable marine fuel over the next decade.

But the GMF report also warned that high premiums and dependence on long-term offtake deals remain major barriers to wider uptake.

Certainty to scale volumes, lower costs and narrow price premiums will ultimately hinge on clear regulatory signals. Over time, such certainty could support the emergence of a spot market and help move green methanol from a niche fuel to a mainstream option for shipping.

In other news this week, Norwegian chemical firm Yara International and German chemical giant BASF have decided to scrap their plan to build a blue ammonia production plant with carbon capture and storage on the US Gulf Coast. The decision was guided by the companies’ commitment to prioritise initiatives with the greatest potential for long-term value.

Burando Energies will supply Norwegian Cruise Line Holdings (NCLH) vessels with B30 (30% biofuel) blends in the Netherlands. “The NCLH vessel portfolio includes Norwegian Prima along with five other vessels across the fleet receiving biofuel blends,” Burando said.

Singapore-based Global Centre for Maritime Decarbonisation (GCMD) conducted six trials of marine biofuel tracer applications in the real-world supply chain. During the trials, a non-fluorescent organic tracer was consistently detected with less than 5% variation between expected and actual values, which made it the most practical solution for detecting biofuel fraud.

By Konica Bhatt

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