Singapore Plans to Meet Rising Demand for Methanol

Singapore could potentially produce over 1 million metric tons of low-carbon methanol annually by 2030, which would meet the growing demand for alternative bunker fuels, according to a statement by a Singapore minister on Tuesday.

The Maritime and Port Authority (MPA) of Singapore began soliciting proposals last year from companies to supply methanol as a marine bunker fuel starting in 2025.

"On aggregate, the submissions have the potential to supply over one million tonnes per annum of low-carbon methanol by 2030," Amy Khor, a senior minister of state, announced during the Singapore Maritime Week conference on Tuesday.

Khor noted that the submissions signal a readiness within the industry to ramp up methanol bunker fuel supply in anticipation of increasing demand in the near future.

The port authority plans to release additional details about these findings on Wednesday, which will contribute to the creation of a regulatory framework for methanol bunkering, Khor added.

She also mentioned that national standards for supplying methanol as a marine fuel in Singapore are slated for publication in 2025.

This initiative comes as the shipping industry sees a rise in the number of methanol-powered vessels being ordered by companies aiming to reduce carbon emissions through the use of cleaner fuels.

Singapore, recognized as the world's largest bunkering hub, successfully conducted its first bio-methanol refueling operation for a Maersk ship in July this year.

The interest in methanol as a bunker fuel has been climbing as the maritime sector seeks to meet its carbon emission reduction targets, with significant investments in methanol bunkering projects by major shipowners and ports worldwide.