The Methanol Institute (MI) has partnered with GENA Solutions Oy on the development of a database of biomethanol and e-methanol projects.
The database identifies 131 methanol production projects globally, with total projected capacity rapidly expanding to 19.5 million metric tons (6.5 billion gallons/24.6 billion liters) by 2028. According to the Methanol Institute, there are currently 251 methanol newbuild vessels on the water or in the order book, including large container ships, chemical tankers, ferries, car carriers, and bulkers.
A single large 16,000 TEU methanol container vessel can consume 35,000-40,000 metric tons of methanol per year. The anticipate demand for methanol as a marine fuel is driving much of the interest in expanding the supply of methanol from conventional and low carbon feedstocks.
Just two years ago, we were tracking 80 projects with total announced production capacity of 8 million metric tons by 2027. Now there are more than 130 projects in our joint database with GENA, topping 16 million metric tons in 2027, and 19.5 million tons by 2028.
… said MI CEO, Greg Dolan, adding that if we add low carbon methanol projects, the total rises to nearly 24 million metric tons. Methanol will play a prominent role in the low carbon transition for hard to abate sectors like shipping, aviation, and chemicals.
Furthermore, as MI had previously noted in a report, low carbon fuels are likely to remain more expensive than fossil fuels, this suggests that the widespread adoption of low-carbon marine fuels requires policy interventions such as a price on carbon.
According to ABS, the key benefits of methanol include:
- It does not contain sulfur;
- It can be stored as a liquid in ambient air conditions, thus the costs for tanks and fuel-gas supply systems are greatly reduced;
- It does not produce particulate matter upon combustion.
We are witnessing remarkable growth in renewable and low-emission methanol capacities, with around 6.5 Mt already in operational, construction, or engineering stages. This supply surge is poised to meet the increasing demand for renewable methanol and contribute to the decarbonization of methanol and related industries.
… supplied Vitalii Protasov, CEO and co-founder of GENA
