Japan Embraces Methanol as Transition Fuel for Greener Maritime FutureSource: Argus Website – Authors: Reina Maeda and Nanami OkiJapan is increasingly focusing on methanol as an alternative marine fuel, anticipating a surge in demand especially after 2027. This shift is seen as a temporary solution, bridging the gap until ammonia- and hydrogen-fueled vessels become commercially viable.
Growing Adoption of Methanol-Fueled Ships
The Japanese shipping industry plans to introduce more methanol-powered vessels starting in 2027 to help reduce greenhouse gas (GHG) emissions from global maritime operations. According to a report by ClassNK, a Japanese classification society, the International Maritime Organization (IMO) aims to achieve net-zero emissions in international waters by around 2050.To support this goal, 26 methanol-powered ships are expected to be commissioned worldwide by the end of 2024, followed by 54 ships in 2025 and 96 carriers in 2026. This growth is projected to elevate global methanol demand to 4.5 million tons per year by 2026. As of June, there are already 33 methanol-fueled vessels in operation.
Expanding Methanol Infrastructure in Japan
Japanese shipowner Mitsui OSK Lines (Mol) stated that methanol-fueled ships can refuel at approximately 130 major ports globally, excluding Japan. In collaboration with Mitsubishi Gas Chemical (MGC) and Maersk, the city of Yokohama launched a study on methanol and green methanol bunkering in December 2023. This initiative led to a successful ship-to-ship bunkering simulation in September, involving new partners like Japanese refiner Idemitsu, MGC's shipping subsidiary Kokuka Sangyo, domestic shipping firm Uyeno Transtech, and Yokohama Kawasaki International Port.
Investment in Methanol Production
The anticipated rise in methanol usage, particularly cleaner e-methanol, has prompted Japanese companies to invest in upstream projects to secure this fuel. According to Japan’s Ministry of Economy, Trade and Industry, Japanese firms have invested in over 10 e-methanol production projects both domestically and internationally, with plans to increase this number.
Developing and Modifying Vessels for Renewable Fuels
Japanese companies are not only developing new methanol-powered carriers but also modifying existing ships to burn renewable fuels such as biofuels, e-methane, and e-methanol. Mol highlighted that methanol-fueled ships are easier and more cost-effective to convert compared to LNG-powered vessels. Additionally, methanol’s stability as a liquid at room temperature and atmospheric pressure simplifies its transportation and storage.Nippon Yusen Kaisha (NYK Line), another major shipping company, is considering the development of smaller methanol-fueled handymax ships. These vessels would be ideal for operations where large ammonia fuel tanks are impractical, aiding in the sector’s decarbonization efforts.
Methanol as a Temporary Solution
Despite its benefits, Japanese firms view methanol primarily as a "bridging fuel" rather than a long-term zero-emission solution. Methanol can reduce GHG emissions by only 15% compared to traditional bunker fuel but can significantly cut sulfur oxide and nitrogen oxide emissions by up to 99% and 80%, respectively. To fully achieve the maritime sector's net-zero goals, the introduction of much cleaner fuels like ammonia and hydrogen is essential.The Japanese government is actively promoting the development of ammonia and hydrogen-fueled ships by providing financial support. The Ministry of Land, Infrastructure, Transport and Tourism (Mlit) expects these clean vessels to become operational around 2030. Additionally, Japan's state-owned research institute Nedo plans to allocate ¥35 billion ($229 million) from its ¥2.76 trillion green innovation fund to support the development of zero-emission ship technologies, including engines, fuel tanks, and fuel supply systems for hydrogen and ammonia.However, the funding for methanol-powered ships remains limited, with current grants available only from Mlit and the Environment Ministry, offering ¥100 million per vessel over two to three years. While the application for these grants has been open annually since 2023, the allocation details for methanol-powered vessels remain unclear, especially as the funds also target LNG-fueled ships.
Looking Ahead
Japan's strategic investments and evolving infrastructure indicate a strong commitment to reducing the maritime industry's environmental impact. By leveraging methanol as a transition fuel, Japan aims to pave the way for the broader adoption of more sustainable marine fuels in the future.For more detailed insights, visit the
Argus website and follow updates by Reina Maeda and Nanami Oki.
