In June 2023, the European Union made a historic decision, adopting the FuelEU Maritime Regulation (2023/1805). This is a key element of the “Fit for 55” package, aiming to reduce greenhouse gas emissions by at least 55% by 2030. The new regulations are shaking up how the maritime industry measures and manages its emissions. For the first time, methanol is taking center stage.
FuelEU Maritime in a Nutshell
The regulations apply to all vessels above 5,000 GT calling at EU ports, regardless of their flag. They introduce a mandatory reduction in the greenhouse gas intensity of maritime fuels, with progressively stricter targets:
- 2% reduction by 2025
- 6% by 2030
- 14.5% by 2040
- 80% by 2050
These ambitious targets, referring to GHG emissions per unit of energy consumed, are forcing operators to fundamentally rethink their fuel choices.
Why is Methanol on the Rise?
Methanol, as one of the few alternative fuels to conventional bunker fuels, is already technically mature and gaining significance. But what makes it so appealing to regulators and the market?
- Ease of Use: It’s a liquid at ambient temperature, making it easy to handle, transport, and store.
- Renewable Potential: It can be produced renewably from biomass, green hydrogen, or captured CO₂, opening the door for “green methanol.”
- Low Carbon Footprint: Green methanol can reduce CO₂ emissions over its entire lifecycle by up to 95%.
- Compatibility: Existing marine engines can often be adapted for methanol use.
What Does This Mean for the Methanol Industry?
FuelEU Maritime creates new opportunities for methanol producers – especially for renewable and bio-based variants. Ships powered by methanol will:
- Earn compliance points under the FuelEU scoring system.
- Gain competitive advantages in fleet tenders and procurement contracts.
- Qualify for environmental incentives, discounts, and future funding schemes.