Singapore Launches Green Methanol Bunkering to Drive Shipping Decarbonization

A world leader in maritime bunkering, Singapore is taking a significant step in the energy transition of its shipping industry.

Starting in 2026, the city-state will issue its first licenses for bunkering with “green” methanol, a low-emission alternative fuel. This strategic initiative aims to green one of the world’s most polluting sectors and establish Singapore as a hub for sustainable bunkering.

Singapore Begins Licensing Low-Emission Methanol Fuel for Cleaner Shipping

Singapore will begin issuing bunkering permits next year to companies supplying methanol as marine fuel, helping to reduce carbon emissions from global shipping, the city-state’s port authority announced Monday. Singapore is the world’s leading hub for bunkering (the process of refueling a ship), thanks to its strategic location along the Strait of Malacca, its well-developed infrastructure, and its access to refineries. Three companies will begin supplying ships with methanol at Singapore’s port starting January 1, 2026, the Maritime and Ports Authority (MPA) said in a statement.

“This marks an important step towards the establishment of large-scale methanol bunkering and the realization of Singapore’s ambition to become a sustainable hub for multi-fuel bunkering,” said the MPA.

Green methanol, or biomethanol, is composed of residual carbon dioxide (CO2) and “green hydrogen,” created from renewable energy sources to separate water molecules. Green methanol has a lower carbon footprint than traditional marine fuels, reducing carbon emissions by up to 65%, according to shipping companies. Global Energy Trading Pte Ltd, Golden Island Pte Ltd, and PetroChina International (Singapore) Pte Ltd were selected from among 13 companies that applied for licenses following the call for applications launched in March by the Asian city-state, the port authority stated.

“The keen interest generated (by the tender) reflects the growing attention of the sector to low-emission marine fuels,” she said.

The licenses will be valid for five years in order to support “the early development of methanol refueling by giving licensees sufficient leeway to build up their capabilities, consolidate their supply chains and anchor their initial investments as the market develops,” the statement said.

Global shipping, which typically runs on diesel and other bunker fuels, contributed at least 3% of global greenhouse gas emissions, according to the latest data from UNCTAD, the United Nations trade and development agency. New guidelines from the International Maritime Organization stipulate that shipping emissions must be reduced by at least 40% by 2030 and brought to net zero by around 2050 to meet the goals of the Paris Agreement on climate change.

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(Featured image by william william via Unsplash)

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