As the global maritime sector advances toward decarbonization, methanol is taking center stage as one of the most practical and scalable alternative fuels for deep-sea shipping. Backed by a growing fleet of over 450 methanol-capable vessels in operation and on order, along with rapidly maturing technical solutions across major ship types, the industry is increasingly viewing methanol as a viable option for the energy transition.
According to DNV’s newly released white paper, “Methanol fuel in shipping,” methanol-fuelled engines and onboard systems have reached high technological readiness. Existing global infrastructure—production facilities, storage sites, and dedicated bunker vessels—is further strengthening the foundation for widespread adoption. Notably, China accounts for 43% of planned global low-GHG methanol production capacity, underlining the fuel’s rising momentum.
Knut Ørbeck-Nilssen, CEO Maritime at DNV, emphasized the need for diverse solutions in the decarbonization journey.
“As the maritime industry explores pathways to a lower-carbon future, it is important to consider a range of practical and scalable solutions. There is no one-size-fits-all answer. Methanol is one option that draws on established technologies and infrastructure, and it is encouraging to see the industry’s growing interest in a variety of alternative fuels.”
Methanol presents several environmental advantages. It is sulfur-free, produces almost no soot, and emits significantly lower NOx levels compared to conventional marine fuels. The DNV report notes that bio- and e-methanol pathways can achieve very low, or even negative, lifecycle emissions. Its compatibility with existing port infrastructure and ease of bunkering—compared to cryogenic fuels like LNG or ammonia—also reduces operational complexity for shipowners.
Despite its promise, cost and availability stand as major hurdles. The report highlights that bio-methanol prices in 2025 average around USD 2,500 per tonne MGOe, nearly triple the cost of marine gas oil. Current global production amounts to 2.2 million tonnes, far below the estimated 60 million tonnes that could be required by 2040. DNV’s modelling of four demand scenarios shows that regulatory measures, including the IMO’s Net-Zero Framework and FuelEU Maritime, will play decisive roles in accelerating uptake.
From a technical standpoint, operational performance is strong.
Marius Leisner, Senior Principal Consultant at DNV, noted:
“Methanol-fuelled engines have demonstrated high reliability, with modern dual-fuel designs accumulating more than 600,000 operating hours on methanol. Retrofit options are well established, and the use of conventional bunkering systems means ports can adapt quickly and cost-effectively.”
Another benefit is fuel flexibility: dual-fuel engines can run on methanol, biodiesel, or traditional fuels, and with minor adjustments, even ethanol. Tools like DNV’s Fuel Selector and the Alternative Fuels Insight (AFI) platform offer shipowners valuable guidance on compliance, fuel strategies, and future-ready investments.
As shipowners, ports, and fuel producers align closer to global decarbonization goals, methanol’s role is expected to strengthen—shaped by technology readiness, regulatory clarity, and the rapid scaling of green production pathways.
