Classification society DNV has released a new white paper assessing methanol’s growing role in shipping, concluding that the fuel has reached a high level of technical maturity even as cost and availability remain major constraints for large-scale adoption.

The white paper, “Methanol fuel in shipping,” notes that more than 450 methanol-capable vessels are either operating or on order, with engine and fuel system solutions now available for all major ship types. DNV states that existing production facilities, storage installations and an expanding bunker fleet are already forming the basis of a workable global supply chain. The report also highlights that industry investment is accelerating, with China accounting for 43% of planned global low-GHG methanol production capacity.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, said: "As the maritime industry explores pathways to a lower-carbon future, it is important to consider a range of practical and scalable solutions. There is no one-size-fits-all answer, and different shipping segments and geographies will require different approaches. Methanol is one option that draws on established technologies and infrastructure, and it is encouraging to see the industry's growing interest in a variety of alternative fuels."

According to DNV’s assessment, methanol offers several environmental advantages: it contains no sulfur, produces very little soot, and emits significantly lower NOx than fuel oil. The white paper also points out that specific bio- and e-methanol pathways can achieve lifecycle emissions as low as or even below zero. Methanol’s compatibility with current port infrastructure and the availability of interim bunkering arrangements may help lower transition costs for shipowners.

However, the report identifies cost as a barrier. Bio-methanol prices in 2025 average around $2,500 per tonne MGOe, approximately three times the cost of marine gas oil, while global production stands at 2.2 million tonnes, compared to potential demand of up to 60 million tonnes by 2040.

To evaluate possible uptake, the white paper models four demand scenarios and indicates that frameworks such as the IMO’s Net Zero strategy and FuelEU Maritime will strongly influence future adoption.

Marius Leisner, Senior Principal Consultant at DNV, added: "From a technical perspective, methanol-fuelled engines have demonstrated high reliability, with industry data indicating that modern dual-fuel engine designs have accumulated more than 600,000 operating hours on methanol. Retrofit feasibility is well established, and the use of conventional bunkering systems, unlike cryogenic fuels, means ports can adapt quickly and cost-effectively."

The report also notes that dual-fuel methanol engines can operate not only on methanol but also on biodiesel and conventional fuels, and with minor adjustments, on ethanol.