Million-Dollar Award Offered for Methanol First

Methanol has been in the news this week with the announcement by Jumbo of a contract with Dajin Heavy Industry for the construction of two methanol-ready heavy lift vessels and with Sanmar’s announcement that the world's first dual fuel methanol escort and rescue tug has officially been granted full class certification by ABS.

Additionally, the container ship Eco Levant, operated by X-Press Feeders, is now operating on a methanol and ethanol mix after a bunkering first in the port of Rotterdam.

Perhaps the Port of Long Beach tops the news, though, with the establishment of an unprecedented $1 million award for the first oceangoing vessel to refill at its harbor with methanol on a commercial scale.

The Clean Fuel Bunkering Challenge is expected to send a strong signal to the global market of the interest in expanding the availability of clean marine fuels.

“We know the shipping industry is considering moving toward adopting methanol marine fuel for some great reasons – they want to reduce greenhouse gas emissions and improve air quality. Today, we’re giving them 1 million more reasons to embrace clean fuels,” said Port of Long Beach CEO Dr. Noel Hacegaba. “This is about demonstrating that we’re serious about creating a North American market for methanol bunkering, and giving the industry an incentive to invest. We’re also seeing how rising fuel costs are strengthening the case for energy diversification and greater energy independence.”

When compared to conventional marine fuel, a ship running on methanol emits significantly less pollutants, reducing nitrogen oxide emissions by up to 50%, sulfur oxides by 95% and particulate matter by 90%. Major global shipping companies are heavily investing in dual-fuel methanol vessels, some of which are already visiting Long Beach. However, methanol fuel is not currently available at the Port, necessitating methanol-capable ships to depart using conventional bunker fuel.

With current pricing, refueling a vessel with methanol would cost about $1.5 million per call compared to approximately $1 million for conventional fuel. The Port award is intended to offset the difference, and provide another $500,000 toward additional costs including development of operational and safety procedures and working with fuel providers and distributors, as well as local permitting agencies.