Giant Swiss producer Proman has reassured shipowners that the supply of green methanol will match future demand as shipping decarbonises.
Anita Gajadhar, executive director of marketing & logistics, told TradeWinds: “We are hearing every day new announcements for newbuild methanol ships.
“Once there is the demand, you will see the supply come. It’s just how the business works.”
AP Moller-Maersk has 19 boxships on order that will need the low-carbon fuel. It has been forging alliances with new production projects globally to secure its supply.
French rival CMA CGM is also now ordering methanol-fuelled vessels.
Erik Hanell, chief executive of Proman’s shipowning partner Stena Bulk, told TradeWinds that methanol is working as a lower-carbon fuel today, but volumes are still limited and prices high.
“Price has to be comparable; that comes with volume and scale, plus a carbon tax,” he said.
“Then I’m sure more and more ships will be built with methanol propulsion.”
He believes, however, that spot-trading tankers will be low down the list in terms of orders, compared with container ships, ferries and other vessels that have fixed trades with a predictable fuel supply.
Raising awareness
Hanell said Maersk and CMA CGM ordering such vessels helps raise awareness of the fuel, in shipping and elsewhere.
“As soon as you have the ships up and running, fuel supply will hopefully be developed faster than we think,” he added.
Gajadhar argues that global regulations need to be in alignment to boost take-up of new fuels such as green methanol.
“Anything you do right now is a risk,” she said.
“Building a vessel is not a cheap investment, one of the reasons owners are not investing much today. That is only going to result in tightness of supply of vessels.
“Common regulations will allow for investments in the future.”
