Analysis-Shippers bet on green methanol to cut emissions, supply lags
) and are betting on methanol, as well as exploring other less developed options such as ammonia, to meet their own and clients' emission reduction targets.
"The real cost challenge remains on the fuel supply side and the need to rapidly build production globally and at scale; and the associated fuel infrastructure," Emma Mazhari, Maersk's head of energy markets, told Reuters. But green methanol, produced from biomass or captured carbon and hydrogen from renewable power, is scarce and costs at least twice as much as conventional methanol, produced from fossil fuel, industry insiders say.
Global demand for methanol, typically used in construction and manufacturing, stands at 100 million tonnes per year , while a 16,000-TEU container ship consumes 30,000 to 40,000 tpy, the Methanol Institute said.
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