Going for world’s first container vessels running on carbon-neutral ‘green’ methanol: No cakewalk for Maersk

Though it will not be a cakewalk for Maersk and others who will pursue the methanol route as part of their decarbonization drive, it is significant to take note of these baby steps

LOGISTICS MONITOR/By Ramesh Kumar

Global shipping giant Maersk’s dream to lead the shipping pack in the transition to biofuel from the conventional bunker oil may be a slow boat. It has chosen carbon-neutral “green” methanol for this purpose, beginning from 2023.

Vincent Clerc, CEO of AP Moeller, writing in Time (2 January 2021), hints that Maersk “alone will need between 300,000 and 400,000 metric tons of carbon-neutral fuel for its new methanol ships.”

Maersk and X-Press Feeders are going for the world’s first container vessels running on carbon-neutral “green” methanol — the first scalable carbon-neutral solution available for such ships.

Not the Pioneer

Strictly speaking, Maersk is not the pioneer in using methanol in shipping instead of the conventional bunker oil. Stena Germanica performed such a feat in 2015. However, there were few takers for methanol-powered cargo vessels barring methanol carriers, and thus the la affaire methanol went into oblivion. The fresh enthusiasm of Maersk to explore methanol as an alternative fuel for its 2100 TEU vessel injected new life into this biofuel.

Maersk’s annual bunker oil purchase of 10.3 million metric tonnes — the largest consumer of marine fuels in the marine fuels sphere — makes it relegate the topic to the front end. Though Maersk is unlikely to go in for 100% bio-methanol for its massive fleet, the assertion that it is the most mature fuel from the technology perspective, and it can get an engine to burn it as part of its decarbonization drive, is bound to create ripples in the cargo shipping segment.

Over the next few years, supply chain issues will be Maersk’s biggest challenge as it embraces the “most mature marine fuel.” What it needs in large quantities is not commercially available. Nonetheless, it feels the supply crunch will be “temporary.”

Eyes on the Deadline

In June 2021, IMO adopted key short-term measures aimed at cutting the carbon intensity of all ships by at least 40% by 2030, in line with the ambitions set out in the IMO Initial Strategy. Surprisingly, Maersk has set its eyes on achieving this goal much before that deadline.

By 2026–7, Maersk will own at least 10 vessels using methanol. It cannot ignore cost considerations. Each new ship costs US$175 million — 10–15% higher than ships using conventional fuel. The green methanol, experts figure, may cost around US$1,000 per metric tonne. A key dampener is the lower energy density of methanol. Its fuel cost will be almost double at US$2,000 per metric tonne to achieve the same propulsion.

Meanwhile, in its December 2021 report, SP Global says, “The high energy density for alternative fuels is critical for their use in large oceanic vessels. Liquid ammonia and liquid hydrogen have an energy density of around 30% and 22%, respectively, compared to HSFO. This translates into storage requirements of around 3.3 and 4.5 times. However, storing hydrogen onboard becomes an even bigger issue given the space needed and heavy tanks required and thus limits longer distance sea travel.

More Practical Solutions

“On the other hand, methanol and ammonia provide more practical solutions given that they offer more accessible storage and transportation options, and there is a greater experience in handling these materials. But ammonia’s immediate adoption is hampered by its source and the future cost of green ammonia.

“The bottom line is that apart from energy densities and storage considerations, future technological growth will determine the choice of clean fuels. And no technology is commercially available currently on a broad enough scale.

“However, looking at the merits, clean methanol and liquid ammonia still have a certain edge over liquid hydrogen due to higher density, lower onboard space requirements, favorable handling temperatures, easier bunker storage, and long handling experience.

“Simultaneously, there are discussions on the feasibility of duel engines on ships. As the maritime industry explores different approaches towards decarbonization, dual-fuel engines are becoming increasingly prevalent in building new vessels since they are more environmentally friendly than other alternatives. Prakash Chandra, GM-Technical of South Korea-based Fleet Management Limited, asserts that dual-fuel engines are unique because they can operate on both conventional fuels, plus methanol or gas fuels.

“Owners are keen to install them to reduce vessels’ emissions of greenhouse gases, to comply with the environmental requirements set forth by the International Maritime Organisation (IMO) for 2030 and beyond.”

Contrary to popular perception, experts opine that biofuel burn cleaner than fossil fuels but still produce emissions. Biofuel is not a zero-emission item. William Reinsch of the Center for Strategic and International Studies is quoted as saying, “biofuel as a supplement is not a huge step forward, but bunker fuel is heavier, and the emissions are greater. It is worth noting that existing ship engines cannot run on pure biofuel, and therefore, there is a need for engine redesign.”

Maritime classification society the American Bureau of Shipping (ABS) approval in principle recently to Alfa Laval bestows credibility and trustworthiness of using methanol for firing boilers in ships.

Next Likely Step in Decarbonizing Marine Industry

Methanol, liquid at ambient temperatures and carbon-neutral if produced from green sources, is the next likely fuel step in decarbonizing the marine industry. While methanol can be found on a handful of vessels and is planned for many more, its use has been limited to main engines. Methanol operations will need to extend to boilers in the future, says Alfa Laval officials.

“Alfa Laval is looking at the full scope of methanol’s influence on board,” says Lars Skytte Jørgensen, vice president, Technology Development, Energy Systems, Alfa Laval Marine Division.

“The most natural choice for boilers is to fire them with the vessel’s primary fuel, but methanol’s low-flashpoint nature and the differences in its energy density require a new approach to the burner and fuel supply systems. It was important for us to develop that approach.”

Bureau Veritas, however, cautions without mincing words: “Methanol presents a handful of challenges for ship owners and managers, notably in terms of availability, the cost of sustainably produced methanol, and onboard safety assurance. Overcoming these challenges will require ongoing collaboration between the marine and chemical industries, with an emphasis on advancing production of carbon-neutral methanol (bio-methanol or e-methanol) when considering well-to-wake greenhouse gas (GHG) emissions.”

Safety the First Concern

Safety is a major concern for the maritime certification agency. Safety is the first concern when using methanol as fuel. While methanol may be stored as a liquid at ambient temperatures and under normal pressure, it is a toxic and flammable substance. Particular attention must be paid to the high toxicity of its vapors. For shipowners looking to use methanol as fuel, this first means that specific arrangements for ventilation systems must be arranged onboard to ensure safe working conditions for the crew. Second, methanol tanks must be maintained with an inert atmosphere at all times during normal operations, avoiding the risk of dangerous chemical reactions. Finally, personnel must be trained to properly handle methanol, undergoing safety management training to minimize risk.

Considering that four-fifths of global trade is transacted via sea, and therefore, cargo ships (containers, bulk, liquid, etc.), the shipping industry’s contribution to carbon emission is on the higher side in terms of transportation. The shipping vertical is a late-comer to combat the CO2 emission brigade. Green shipping through sustainable fuel is the talking point of late. Yes, the era of low-carbon sailing is in motion.

Though it will not be a cakewalk for Maersk and others who will pursue the methanol route as part of their decarbonization drive, it is significant to take note of these baby steps.

[Main/Featured picture on top by Piaxaby has been used for representational purpose only]

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The author is a business journalist specializing in logistics and supply chain. He has traveled 200,000 km on the Indian highways, met over 100,000 long-haul truck drivers across India since January 2010. He has authored three books: 10,000KM on Indian Highways, Naked Banana! and An Affair With Indian Highways. He is a Life Member of the Chartered Institute of Logistics & Transportation (CILT-India Chapter). He can be reached at konsultramesh@gmail.com. In this column, ‘Logistics Monitor’, he presents a global perspective on logistics and supply chain. The views are the author’s own and The News Porter bears no responsibility for the same.