Methanol is a strong option in the battle of alternative fuels. It is proven as a clean, efficient, and safe fuel that offers immediate decarbonization benefits with substantial net GHG reductions, full compliance with IMO2020 and a pathway that leads to net carbon neutrality.
Taking the potential of methanol into consideration, Panel 11 of the 2021 GREEN4SEA Virtual Forum, discussed about the market momentum and success stories of methanol; key challenges as a marine fuel; CAPEX/OPEX and fuel price considerations along with any real life examples; competitive strengths and weaknesses of methanol against other fuel options.
Beginning the conversation, Greg Dolan, CEO, Methanol Institute, mentioned that global methanol demand could increase 5-fold for the next 3 decades, while the goal over the next decade would be to ramp up the production of methanol and e-methanol.
Regarding the cost of the production of green methanol, i would say that fossil based methanol could compete petroleum based fuels, on an energy content basis. Depending on the feedstock, some biogas processes are ergonomically competitive with conventional methanol
In fact, cost production projections of renewable methanol by 2050 are within the range of fossil methanol and petroleum based fuels. As for fuels in the transport sector, energy density matters, says Mr. Dolan, explaining that while:
Methanol has half the energy content of diesel bunker fuels, it is liquid at ambient temperature and pressure, with higher energy density than others like ammonia, hydrogen and batteries. The requirements to safely use methanol have also been established
Continuing the discussion on methanol, and taking it one step further, Stamatis Fradelos, Regional Bulk Carriers Segment Director, Maritime – South East Europe, Middle East & Africa, DNV Hellas, talked about DNV’s GHG pathway model. This model handles various input relating to the baseline fleet, covering three ambition levels:
- No ambition;
- IMO ambition;
- Strict decarbonization by 2040.
The model indicates that there are no clear winners among the different fuel options. However, biomethanol, e-ammonia and blue ammonia appear frequently”. Mr. Fradelos said. As for the share of shipping energy usage in 2050 for fuels, fuel price matters, according to Mr. Fradelos, as ammonia plays a leading role, “depending on whether we assume favorable prices for either fossil fuel or renewable electricity
Regarding now the role of fuel flexibility and retrofitting, he noted that the IMO ambitions scenario projects that:
In the 2020s there will be an increasing use of LNG in newbuilds, as well as some retrofit to scrubbers. As for the 2030s, there will be a significant growth in methanol on newbuilds, while regulations will start to have an effect with some retrofits from LNG to methanol. Finally, in the 2040s, most newbuilds will be built to run on methanol, while existing ships will use bio-LNG and bio-MGO as drop in
Furthermore, Mr. Fradelos added that:
The choice of energy converter and onboard fuel storage is one of the most critical decisions a shipowner needs to take today. Without a development that moves the status markers significantly, shipowners making the decisions to deploy new, improved technologies and fuels will not risk investing in immature solutions. As a result, safety will be a primary concern for some fuels
The importance of methanol was also highlighted by Berit Hinnemann, Senior Innovation Project Manager, Technical Innovation, A.P. Møller – Mærsk A/S. According to Ms. Hinnemann, in 2018 Maersk committed to achieve net zero CO2 emissions by 2050.
We need to decarbonize in order to stay relevant to our customers. We need to make the transition from fossil feedstocks, to renewables. This could be biomass feedstock, electricity, or a combination of both
To achieve its decarbonization goals, Maersk is currently following 4 pathways:
#1 Biodiesel: Biodiesel can be used as drop-in in existing vessels and engines. However, the limited availability of biomass feedstock, along with the price pressure due to competing demand, are holding its take-off back.
#2 Methanol: A very positive factor about methanol is that it is already in operation as marine fuel, while an engine is available. Moreover, its liquid state at normal conditions and the experience in its handling are also contributing factors. Nevertheless, bio-methanol has limited availability, while e-methanol has availability of biogenic CO2 source.
#3 Lignin fuels: This kind of fuels are potentially the most price competitive net-zero fuels. On the other hand however, they are still in the development stage, while an additional handling of contaminants may be required.
#4 Ammonia: Ammonia can be a fully zero-emissions fuel, and it can also be produced from renewable electricity. However, it has its downsides, as safety and toxicity pose challenges, while the future cost depends on the cost of renewable electricity.
Taking all of the above into consideration, Garry Noonan, Head of Transition Technologies, Ardmore Shipping Services, (Ireland) Limited, described how the company is using methanol to decarbonize its fleet:
Fuel cells can be a solution for decarbonization as they have zero emissions. However, the safe supply of hydrogen onboard is proven to be an obstacle
For this reason, Ardmore came up with the solution of methanol to hydrogen generator. This generator can be proven very useful in future decarbonization attempts as it:
- Occupies smaller space relative to compressed hydrogen;
- Has attractive economics;
- Provides clean exhaust emissions;
- Has the potential to be carbon negative;
- Requires minimal maintenance;
- Its scalable;
- Has simple and familiar feedstock strorage.
Agreeing with all of his co-speakers, Douglas Raitt, Regional Advisory Services Manager, Lloyd’s Register, emphasized:
The fact that methanol can be produced through various pathways is an attractive choice, as we can start now, and not wait for the other alternative fuels to become a realistic option
Representing the class society’s point of view, Mr. Raitt explained that “the handling methanol is not that much different from handling gas oil.” Of course operators must be aware of the toxicity, but Mr. Raitt added that:
That can be easily overcome with fairly minimum modifications to fuel transfer systems and fuel management systems onboard ships
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