Emerging Green Methanol Supply Chain: The Eco-Friendly Revolution Begins

South Korea: There was a lot of discussion about chickens in eggs when LNG initially gained popularity as a maritime fuel because of supply, demand, and infrastructure concerns. With Methanol, it appears as though the chickens have already begun to lay. The fact that Arlington, Virginia-based green Methanol producer Carbon Sink LLC and Houston-based Rose Cay Maritime LLC, a Jones Act ATB specialist with a fleet of former Bouchard Transportation ships, have come to an agreement is evidence that the green Methanol supply chain is beginning to come together.

The agreement lays out a strategy for boosting the production, distribution, bunkering, and storage of green fuels that is especially suited for the maritime industry. The capabilities of Rose Cay Maritime, according to Carbon Sink, which is building substantial green Methanol production facilities across the U.S., will give it a stable platform to seamlessly connect its green Methanol projects to consumers by providing end-to-end logistic solutions.

Two conclusions from this deal seem to be that green Methanol production is beginning to scale up and, more importantly, that getting it to ships won't require specialized bunkering vessels outfitted with pricey cryogenic systems.

According to Carbon Sink, there are currently more than 220 Methanol-capable vessels in operation or under development, which represents an annual global demand for green Methanol of more than 6 million metric tons. It mentions that a letter of intent to deliver 100,000 tonnes of green Methanol yearly from its first plant was signed with the world's largest shipping company, A.P. Moller-Maersk, in November of last year. Maersk is anticipated to purchase all the fuel produced by the facility when it starts production in 2027, with options for additional Carbon Sink facilities.

With its aspirations to develop a fleet of vessels using the fuel, Maersk, of course, is the business that has done the most to advance the trend toward environmentally friendly Methanol fueling. The first of those ships has already been delivered, and previously stated that OCI Global a company with its headquarters in Amsterdam, will be providing fuel for the ship's inaugural journey.

Morten Bo Christiansen, who is the head of energy transition at A.P. Moller - Maersk, reportedly stated that the market for green Methanol is still in its early stages, and honestly, didn't anticipate being able to arrange the ship's first journey using green Methanol. As a result, thrilled to have reached this important milestone. Future green fuels are anticipated to be diverse, with green bio-Methanol made from biomass waste already being readily available.

In a demonstration of the green Methanol supply chain in action, Odfjell Terminals Korea (OTK) bunkered Maesk's 2,100 TEU newbuild on July 16 in Ulsan with 1,000 tonnes of the OCI Global Bio-Methanol.

Business analyses and technological work on safe and effective Methanol bunker supply models have been done during the past few months. Anticipate that going forward, the Methanol bunkering industry will be built around these results.

The ship is the first of 19 Methanol dual fuel ships that Maersk has ordered. Global interest will be focused on the operational outcomes of its 21,500-kilometer (more than halfway around the world) journey from South Korea to Denmark. The world's first container ship to operate on green Methanol will make its maiden journey in collaboration with Ulsan Port, and Maersk is eager to be a part of it. For us to gain the necessary operational experience with the new engines and fuel before the arrival of our larger Methanol-enabled vessels in the upcoming years, this trip is crucial to our efforts to achieve net zero greenhouse gas emissions by the year 2040.