By Jeslyn Lerh and Jacob Gronholt-Pedersen
SINGAPORE/COPENHAGEN (Reuters) — Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said.
The first green methanol-fuelled container ship, owned by A.P. Moller-Maersk, sailed from South Korea in July. The number of such vessels is expected to exceed 200 by 2028, up from 30 this year, consultancy DNV forecasts.
Container giants such as A.P. Moller-Maersk, CMA CGM and XpressFeeders dominate the order books. They ship consumer goods for companies including Apple (NASDAQ:AAPL), Nike (NYSE:NKE), Adidas (OTC:ADDYY) and Walmart (NYSE:WMT) and are betting on methanol, as well as exploring other less developed options such as ammonia, to meet their own and clients' emission reduction targets.
Maersk said methanol-powered ships with dual-fuel options cost about 10%-12% more than conventional ships, but the price difference should become insignificant in the longer run once developers achieve economies of scale.
The challenges of delivering enough fuel, however, are considerable and emissions will not be entirely eliminated.
«The real cost challenge remains on the fuel supply side and the need to rapidly build production globally and at scale; and the associated fuel infrastructure,» Emma Mazhari, Maersk's head of energy markets, told Reuters.
Conventional methanol emits up to 80% less nitrogen oxides and cuts nearly 99% of sulphur oxide emissions versus fuel oil, but it still emits planet-warming carbon dioxide.
Using methanol, produced either from biomass or captured carbon and hydrogen from renewable power, can reduce carbon
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