DNV Highlights Methanol as a Scalable Pathway for Maritime Decarbonization

As the maritime sector navigates multiple routes toward decarbonization, methanol is emerging as a practical and scalable fuel solution for deep-sea shipping. More than 450 methanol-capable vessels are already in operation or on order, supported by mature technical solutions across major ship types, according to DNV’s latest white paper, Methanol fuel in shipping.

The report notes that methanol-fuelled engines have reached high levels of technological readiness, and existing production, storage, and bunkering infrastructure can support broader adoption. Investment momentum is also accelerating, with China representing 43% of planned low-GHG methanol production capacity globally.

“Methanol is one option that draws on established technologies and infrastructure,” said Knut Ørbeck-Nilssen, CEO Maritime at DNV. “There is no one-size-fits-all solution, but it is encouraging to see growing interest in a variety of alternative fuels.”

Methanol offers clear environmental advantages: it is sulfur-free, helps reduce particulate and NOx emissions, and certain bio- and e-methanol pathways can achieve very low or even negative lifecycle emissions. Its compatibility with existing port infrastructure may further reduce transition costs for shipowners.

However, scaling methanol remains challenging. Current bio-methanol costs average around USD 2,500 per tonne MGOe — roughly triple the cost of marine gas oil — while production stands at 2.2 million tonnes, far short of a potential 60 million-tonne demand by 2040. Regulatory measures, including the IMO’s Net-Zero Framework and FuelEU Maritime, are expected to play a critical role in accelerating uptake.