The State of Methanol as Marine Fuel 2023

A techno-economic assessment for the use of methanol as marine fuel

This blog is a comprehensive overview of using methanol as marine fuel in a (dual-fuel) combustion engine, based on reports made by IMO, G. Hagen, Marine Methanol and for the Methanol Institute. Key points for shipowners when considering methanol are:

  • Retrofit cost of a ship from diesel fuel to dual-fuel methanol/diesel fuel are estimated to be ranging between €250-350 up to €650/kW. Engine retrofit ranges between €250-350 up to €550/kW.

  • IMO IGF Code of safety for ships using gases or other low-flashpoint fuels is the governing standard for using methanol on board.

  • LNG engines are most suitable for retrofit, as the engines and other equipment are technically capable to handle methanol and much equipment including LNG tanks can possibly be re-used, including double-walled fuel distribution system and nitrogen purge.

  • Methanol can be easily stored and pumped at ambient temperature. It can be stored in existing ballast tanks if vessel operations allow for this.

Use the Decarbonizer to quickly estimate retrofit costs for your vessel.

These figures highlight key features on methanol for marine use. They are elaborated upon in the below paragraphs.
All costs provided in this blogs are estimated, based on anecdotal evidence from research. The numbers are for feasibility study purposes. Contact your supplier for firm quotes.



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Technical Overview

  • Methanol can be stored at ambient temperature and pressure.

  • All equipment needs to be double-walled and purged with nitrogen if needed.

  • Service and bunkering tanks can be made of stainless steel, possibly inside existing ballast tanks.

Methanol is an organic chemical and the simplest aliphatic alcohol, with the formula CH₃OH. It is a light, volatile, colourless, flammable liquid with a distinctive alcoholic odour similar to that of ethanol. Due to its very low viscosity compared to conventional HFO and diesel, special efforts are needed to ensure proper combustion and to prevent leaks in seals. The use of methanol on board ships is governed by the IMO IGF Code on low flashpoint fuels, which mandates many of the practical considerations that need to be taken when working with methanol.

A key consideration is the fuel delivery system, which has to be safe for technicians carrying out maintenance or repairs. In practice this simply means to avoid direct contact with methanol. For this reason, methanol engines are equipped with double-walled fuel distribution systems, similar to LNG vessels. Methanol vapour is heavier than air and it will therefore move downwards, hence the placement of gas detectors and ventilation at lower elevations is essential. Additionally, the entire system including the engine itself is designed to be purged with nitrogen, ensuring that operators can work on the engine safely. In contrast to HFO, there is no need to heat the fuel; on the contrary, the fuel sometimes has to be cooled before injection.


Standards

  • IMO - IGF Code of safety for ships using gases or other low-flashpoint fuels

  • DNV - Pt.6 Ch2. Sec.8 Fuel Ready Ships

  • ABS - Guide for Methanol and Ethanol Fuelled Vessels

  • Lloyd’s - Rules for the Classification of Methanol Fuelled Ship

  • IRS - Guidelines on Methanol Fuelled Vessels

The IMO ’s International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IMO Res MSC.285(86) or IGF Code) is the international standard for ships using low-flashpoint fuel. The basic philosophy of this Code is to provide mandatory provisions for the arrangement, installation, control and monitoring of machinery, equipment and systems using low-flashpoint fuel to minimize the risk to the ship, its crew and the environment, having regard to the nature of the fuels involved.

According to the IGF Code the overall functional requirement is: the safety, reliability and dependability of the systems shall be equivalent to that achieved with new and comparable conventional oil-fuelled main and auxiliary machinery. This level of safety is found by conducting a risk assessment, hazard identification (HAZID) or failure mode, effect and criticality analysis (FMECA), of the fuel system. This is carried out in the design phase, to avoid risks and implement additional risk reducing measures in the design if the risk level is found to be high.

HAZID or FMEA elements

The safety assessment for Low Flashpoint Liquids (LFL) is divided into the following system elements:


Engine retrofit requirements

  • Methanol needs a pilot fuel or other ignition enhancer to operate. Battery packs for power ramp-up might be required.

  • Methanol engines are equipped with double-walled fuel distribution systems capable to be purged with nitrogen.

  • (Dual-fuel) LNG engines are most suited for methanol as LNG engines and equipment also adhere to the IGF code.

  • The conventional fuel system can be kept operable as a spare system.

Combustion

The use of methanol presents lubrication requirements that are substantially different than those of conventional fuels. Using methanol as a fuel generally promotes a cleaner lubricant environment, but induces significantly greater engine wear compared to fuel oil. This wear may affect engine operation and durability.

For engine retrofitting, fuel injection is to be modified to achieve higher injection pressure for igniting methanol. Consequently most engines running on methanol will still require a pilot fuel or other ignition enhancer to operate. The low cetane number is a property that methanol shares with LNG and the engine will need a cetane enhancer in order to ignite. In the dual-fuel solution, a small amount of diesel oil is used as a pilot fuel.

A difference from the gas dual-fuel engine is that the gas compressor used for natural gas is replaced by high-pressure methanol pumps to increase fuel pressure. Methanol injection is performed via a common rail system. All piping for methanol is designed as double-walled installations. The methanol in the high-pressure piping system can be purged free by nitrogen gas to allow service without operators coming into contact with the methanol.

Efficiency

Wärtsilä tests indicate that the fuel efficiency is the same or better when running on methanol. Stena’s experience indicates that they have better fuel efficiency in the order of 1-2% when running on methanol, although they have not performed tests to document the change in efficiency. It is therefore assumed that the energy efficiency in marine engines remains unchanged when running on methanol. There is increased lubrication oil consumption when running on methanol, but this was considered negligible.

For heavy-duty operations and to accomodate high power ramp-up requirements, battery packs might be required as methanol engines tend have lower response time. This requirement is similar to when dual-fuel LNG engines were made and engine manufacturers are continuously improving methanol combustion engines to increase power ramp up.

Retrofit time

The time at yard for methanol conversion of one engine of the Stena Germanica (24 MW ro-ro pax) was two weeks. After installation of the fuel tanks and fuel system, additional engines were converted during operation.


Equipment retrofit requirements and CAPEX costs

All costs provided in this blogs are estimated, based on anecdotal evidence from research from the references stated below. The numbers are for feasibility study purposes. Contact your supplier for quotes.


CAPEX Examples


OPEX Costs


Availability

  • Availability of methanol worldwide for chemical industry is excellent.

  • Bunkering for smaller vessels via land-based logistics, i.e. trucks.

  • Bunkering for larger vessels virtually non-existent.

  • Less than 1% of worldwide methanol is ‘green’ or e-methanol (to be verified).

Global annual methanol production capacity currently exceeds 100 million tons and is mainly used in the chemical industry. Fuel accounts for ‘only’ nine million tons, mostly used as blend in gasoline. The global demand has grown in the last few years. In 2014, demand was estimated at around 65–70 million tons, out of which at least 40 million tons were used in China (IHS, 2015). Methanol is available in all major shipping hubs globally, but the last mile to ship is currently not commoditized. In practice, this means supply chains have to be self-made in the coming years, especially for large vessels that cannot be serviced with a truck.

Infrastructure

The infrastructure for methanol available today is based on the worldwide distribution of methanol to the chemical industry. This ensures widespread availability, although there may be a need for additional terminals for ship fuel. Within the SECAs, there are numerous terminals that serve the chemical industry. For some ports in Europe, methanol is one of the leading chemicals in terms of volume handled. The distribution of methanol from the hubs is performed by 1,200-ton barges, rail, or tank trucks.

Bunkering

Currently, bunkering of methanol fueled ships is performed by truck (Stefenson, 2014). The trucks deliver the methanol to a bunkering facility with pumps built in containers on the quay next to the ferry. This is a solution that is flexible and easy to build. The technology and safety precautions build on long experience from methanol deliveries for other applications. The first of these fueling facilities has been in service since April 2015. Where there are several ships using methanol that bunker in a port, existing bunker ships may be converted.


Emissions

IMO

CO2 and NOx emission factors for methanol vary significantly, ranging from 15% - 80%+ reduction in the case of CO2. SOx and CH4 emissions are reduced by 100%.

As with regular fossil fuels, CO2 emissions from combustion of methanol are based on the carbon content per MJ fuel. The carbon content can vary slightly according to the purity of fuel; however, purity of the product is well controlled in the production process. IMO estimates that methanol combustion emits 69 grams CO2 per MJ methanol combusted.

FCBI Energy / Wärtsilä

Wärtsilä has tested NOx emissions from methanol against those from HFO in two engine models: pre-tests on the Wärtsilä Vasa 32, and full tests on the Sulzer Z40S-MD. Their results show that NOx emissions were approximately 40% of emissions from HFO from the same engines at similar load. However, the NOx emissions were not as low as Tier III levels. The report therefore assumes that NOx emissions during combustion are reduced by approximately 60% when running on methanol compared to HFO. Next to NOx emissions, the following results from laboratory tests with a Wärtsilä methanol MGO dual fuel engine are shared (Stojcevski, 2014):

  • NOx 3.5 g/kWh (Low Tier II, no major conversion)

  • CO (< 1 g/kWh)

  • THC (< 1 g/kWh)

  • PM only from MGO pilot (FSN ~ 0,1)

  • SOx only from MGO pilot (99% reduction)

  • Formaldehyde emissions (~ below TA-luft)

  • No formic acid detected in exhaust gases

  • No reduction in output and load response unchanged, full fuel redundancy

  • Higher efficiency (tests show lower fuel consumption in methanol mode)

Man

MAN Diesel has performed tests with a methanol in marine diesels resulting in a 30% reduction in NOx emissions compared to diesel. Although the results of tests from Wärtsilä and MAN differ, both indicate a significant decrease in NOx reduction when using methanol. Additionally, NOx emissions are dependent on combustion condition, meaning that any parameter indicating NOx emissions per MJ fuel will contain some uncertainty. This is equivalent to regular fossil fuel engines.


HSE - Working with Methanol

Avoid direct contact

And explosions

Avoiding explosions is generally a good advice for any circumstance, methanol is special however. Due to the low flash point of methanol, explosion hazard is the most important factor to consider in the design of the fuel supply line. In addition, methanol has corrosive properties which need to be mitigated by storing it in stainless- or carbon steel tanks. The low flashpoint also imposes other restrictions on the tanks. Similar to LNG, these are mostly focused on the extra venting- and gas detection systems to prevent gas build up in the tanks. All piping should be double walled and the complete fuel supply system has to be entirely separate from all other piping systems. All piping below deck mustbe double-walled and ventilated.

Toxicity

Methanol is toxic if swallowed, comes in contact with skin or if vapour is inhaled. If methanol is ingested in relatively large quantities it will be metabolized to formic acid or formate salts, which is poisonous to the central nervous system and may cause blindness, coma and death. The high toxicity level implies that if as little as 10 mL of pure methanol is ingested, it can break down into formic acid, which can cause permanent blindness. 30 mL is potentially fatal, although the median lethal dose is about 100 mL. The toxic effects take hours to start, and effective antidotes can often prevent permanent damage. Methanol vapour is heavier than air and it will therefore move downwards, hence the placement of gas detectors and ventilation at lower elevations is essential.

Low flashpoint

Methanol is toxic and has a low flashpoint of only 12°C. Flashpoint is the minimum temperature at which a liquid gives off vapour in sufficient concentration to form an ignitable mixture with air. This methanol property in combination with a low needed ignition energy results in additional control barriers. Additional monitoring and control systems are therefore needed, such as overfill alarms, automatic shutdown, monitoring of ventilation and gas detection.


Ship type considerations

Ship specific requirements according to the DNV GL rules are divided into the following ship types: Working ships (e.g. offshore supply vessel), Cargo ships (e.g. chemical tanker) and Passenger vessels (e.g. cruise ship).


References

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IMO - Methanol as marine fuel

IMO - IGF Code of safety for ships using gases or other low-flashpoint fuels

FCBI Energy - Methanol as a marine fuel report for the Methanol Institute

G. Hagen - Hydrogen powered propulsion for an offshore crane vessel

Marine Methanol - Fuel price comparison

DNV - Pt.6 Ch2. Sec.8 Fuel Ready Ships

ABS - Guide for Methanol and Ethanol Fueled Vessels


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