Methanol’s expanding role in marine fuel, sustainable aviation fuel (SAF), and petrochemicals

The recent Johnson Matthey IMTOF Methanol Conference brought into sharp focus the growing importance of methanol in global decarbonisation strategies. Drawing from insights shared by Energex and an industry panel of experts, the message is clear: methanol is more than a commodity - it’s a strategic lever in the race to net zero.

Marine fuel: scaling a proven solution

Methanol is increasingly seen as a practical and near-term solution for reducing emissions in shipping. Unlike ammonia or hydrogen, methanol is easy to store and transport, and compatible with existing infrastructure. With global maritime regulations tightening, methanol provides a cleaner-burning alternative that's already powering vessels today. 

As the panel (which included representatives from Johnson Matthey, Energex, SunGas Renewables and Poten & Partners) noted, container shippers and cruise liners are actively exploring or adopting methanol due to its performance, safety, and decarbonisation potential. However, scaling up will require long-term offtake agreements and greater clarity on regulatory frameworks.

Sustainable aviation fuel: a new frontier for methanol

With European roadmaps demanding significant decarbonisation of aviation by 2030, methanol-derived SAF is gaining traction

However, regulatory inconsistency and lack of harmonised certification across borders remain key bottlenecks. The panel called for a more unified approach, especially for biogenic CO₂, renewable hydrogen sourcing, and lifecycle emissions standards, to accelerate SAF pathways using methanol.

Petrochemicals: security of supply in question

Methanol continues to be a foundational feedstock in chemicals. But supply dynamics are changing. Energex highlighted the global shift: gas-based production is under pressure due to feedstock diversion and geopolitical constraints, while China is rapidly building coal-based capacity. 

Europe, in particular, faces a dual challenge: demand contraction and supply fragility. Without decisive reinvestment into lower-carbon sources, the region risks losing competitiveness and climate momentum.

What’s holding back progress in renewable methanol?

The panel discussion identified five major barriers:

1. Financing models: Methanol projects need long-term offtake contracts to be investable, but buyers remain reluctant to commit.

2. Policy gaps: Contradictory rules, particularly around carbon accounting, impede project viability.

3. Technology costs: Although costs are coming down, electrolysers, DAC, and advanced CO₂ capture technologies are still expensive, slowing down the business case.

4. Infrastructure integration: Methanol plants need continuous operation, but renewables are intermittent. Bridging this mismatch is critical.

5. Market awareness: Outside the chemical and marine industries, understanding of methanol’s applications and benefits is still limited.

Looking ahead: coordination and commitment

The future success of methanol hinges on coordinated action. This includes:

• Stronger policy support and global regulatory alignment
• Creative financing and offtake strategies
• Greater collaboration between developers, shippers, fuel buyers, and technology providers

As one panellist put it, "We must move from spot markets to long-term thinking. If you can secure the offtake, the investment will follow."

Methanol is no longer just a chemical; it’s a platform fuel. It touches shipping, aviation, road transport, and more. Realising its full potential will require the same ingenuity and collaboration that has long defined this community.