E-methanol (with DAC) is produced from carbon dioxide (extracted from ambient air using direct air capture (DAC) and e-hydrogen. E-hydrogen gas is produced using renewable energy to separate the hydrogen from water through electrolysis. The carbon dioxide and hydrogen gas are then combined through methanol synthesis, which is a catalytic reaction, to form methanol.
| Resources | Production | Bunkering and ports | Handling and storage onboard | Propulsion |
| Renewable power, water, air | Electrolyser, DAC, methanol synthesis | Storage tanks at ports, bunkering systems (barges, pipes, ship2ship) | Fuel tanks | Internal combustion engine |
The readiness level view shows Technology on a scale from 1 (lowest) to 9 (highest), and both Investment and Community on a scale from 1 (lowest) to 6 (highest). In the supply chain view all figures are displayed on a percentage basis to allow like for like comparison, against a scale in 10% increments.
| Technology | Rating | Description | Justification | Challenge |
| Resource | 7 | Low scale pilot production demonstrated | First marine pilots have been demonstrated but scale up is required to meet shipping demand |
A scaled up supply chain and workforce needs to be established for the supply of renewable electricity as well as sustainable carbon sourcing for e-methanol production for shipping |
| Production | 4 | Validation of integrated prototype in test environment | DAC facilities for sustainable carbon sourcing are at prototype stage. Electrolysis for production of e-hydrogen is proven but needs to be scaled |
Electrolysis and direct air capture facilities need to be industrialised at scale. |
| Bunkering and ports | 6 | Pre-production product |
Storage and bunkering procedures at ports are in place, and bunkering has been successfully demonstrated |
Scale-up of bunkering in more locations and environments is needed |
| Onboard handling and storage | 9 | Production and product fully operational | Materials and components for methanol storage are well understood, and widely used, though not yet not deployed across all ship types. | The technology needs to be deployed across all ship types. |
| Propulsion - combustion engine | 9 | Production and product fully operational | Engines have been successfully demonstrated by a wide range of vessels that are now successfully using methanol. | The technology needs to be deployed across all ship types |
| Propulsion -fuel cells | 6 | Pre-production product | Several manufacturers have developed this technology, some with testing completed and pilots planned. | Manufacturers need to further demonstrate scaled-up functionality in maritime conditions through pilots. |
| Investment | Rating | Description | Justification | Challenge |
| Resource | 3 | Commercial scale up | Early revenue projections have identified competitive target markets; however, commercial scaling depends on further development of resource supply chains. |
There is a need to reduce risks of investing in countries with low credit ratings because many of these countries are well suited to provide renewable resources and will therefore be required for scale up of supply. Additionally the sustainable sourcing of carbon needs to be proven economically viable.
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| Production | 3 | Commercial scale up | Green methanol production facilities are receiving public and private funding and are in the process of developing DAC and scaling green methanol production to match demand |
Continued demand signals from shipping are needed to further increase investment in green methanol production facilities that will supply shipping
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| Bunkering and ports | 2 | Commercial trial, small scale | Bunkering has been successfully demonstrated, with more trials in planning stages due to demand signals of increasing retrofits and newbuild orders of methanol (dual fuel) ships |
To unlock investment, stakeholders responsible for investing in bunkering and port infrastructure need to understand the demand profiles and infrastructure required for alternative fuels, including methanol.
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| Ship | 3 | Commercial scale up | Commercial trials are increasing and offtake agreements between shipowners and fuel suppliers are emerging |
The competitiveness of methanol against alternative options needs to be proven in the mid-and long-term. Current IMO LCA initiative will provide transparency - potentially creating incentives to invest in methanol. |
| Community | Rating | Description | Justification | Challenge |
| Resource | 4 | Evidence becoming widespread resulting in initial stakeholder acceptance |
Small scale solutions show some acceptance at a local level, however scaling renewable electricity requires community acceptance around potential environmental and social impacts |
Communities need educating on the wider benefits of renewable energy and to dedicate land use for these purposes. Additionally, carbon sourcing certification needs to be in place. |
| Production | 2 | Early stage solution formation to tackle stakeholder issues | Scaling the technologies reduces community acceptance of environmental and social impacts | Communities need educating on the implications of using large scale wind farms, solar farms and DAC plants. Additionally, carbon sourcing certification needs to be in place. |
| Bunkering and ports | 2 | Stakeholder support or opposition is becoming understood as a result of pilots |
Rules are in place for bunkering of methanol, however community concerns around emissions exist |
Communities need be educated on the comparative analysis of other emissions and safety challenges
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| Ship | 3 | Early stage solution formation to tackle stakeholder issues | Rules are in place for methanol-fuelled ships. However risks due to toxicity and flammability are not widely understood. | Industry needs to build confidence through successful demonstrations, safety measures and operational processes. Communities also need to be educated on the comparative analysis (against alternative fuels) of the range of hazards affecting the crew and port communities. |
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