methanol: an emerging alternative marine fuel...argus marpol strategy summit. 25 april 2019 –...

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WWW.METHANOL.ORG Methanol: An Emerging Alternative Marine Fuel Gregory Dolan, CEO – Methanol Institute Argus Marpol Strategy Summit 25 April 2019 – Houston

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Page 1: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Methanol: An Emerging Alternative Marine Fuel

Gregory Dolan, CEO – Methanol InstituteArgus Marpol Strategy Summit25 April 2019 – Houston

Page 2: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

MI History• The Methanol Institute (MI) was established in 1989 to lobby the US

Congress.

• 30 years later, MI is recognized as the trade association for the methanolindustry, representing world’s leading methanol producers, distributorsand technology companies.

Beijing

Singapore

Brussels

Washington, DC

Page 3: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORGhttps://www.methanol.org/join-us/

Page 4: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

80 million metric tons of global demand, 60% chemical markets and 40% energy markets

Page 5: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Renewable Methanol Report

• 2 February: MI releases Renewable Methanol Report prepared by ATA Insights

• Contents:• Executive summary• Why consider renewable methanol?• Renewable methanol production• Case Studies: CRI, Enerkem,

BioMCN• Applications and uses of renewable

methanol• Conclusions and how to find out

more

• www.methanol.org/renewable-methanol/

Page 6: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Renewable Methanol Emission Reductions: CO2 by up to 95%; NOx by 80%; virtually eliminating SOx and Particulate Matter (PM)

Page 7: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Page 8: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

The Clear Alternative Marine Fuel

HFO+scrubbers

MGO orHFO/MGO

HybridLNG Methanol

Methanol Marine Fuel

Page 9: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

MI Focus: Methanol as a Marine Fuel

• Participate in formation of international regulations and safe handling guidelines for methanol as alternative fuel

• Work with engine OEMs on new build and conversion offerings across multiple scales

• Encourage and support pilot demonstrations of methanol marine fuels in multiple markets, to validate environmental, technical and economic merits

• Direct marketing campaign

Page 10: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

IMO Confirmation of Methanol as a Marine Fuel

CCC 2o Ethyl/methyl alcoholo Fuel cellso Low-flashpoint diesel

CCC 1o Ethyl/methyl alcoholo Fuel cellso Low-flashpoint diesel

CCC 3o Fuel cellso Ethyl/methyl alcoholo Low-flashpoint

diesel

2014 2015 2016 2017 2018

CCC 4o Fuel cellso Ethyl/methyl alcoholo Low-flashpoint diesel

MSC 100• Amendmen

ts• Confirmatio

n• Referral to

other sub-committees

2019

CCC 5o Ethyl/methyl

alcoholo Fuel cellso Low-flashpoint

diesel

o The draft interim guidelines contain a definition of such fuels as follows: “Fuel means methyl/ethyl alcohol fuels, containing allowable additives or impurities, suitable for the safe operation on board ships, complying with an international standard.” Earlier 2018, MSC 99 invited ISO to develop a fuel standard for methyl/ethyl alcohol fuels, which is ongoing

o After expected Approval by MSC 102 in May/June, 2020, Interim Guidelines may begin to be Adopted at the flag state level

Draft Interim Guidelines Validated

///2020

CCC 6o Ethyl/methyl

alcoholo Fuel cellso Low-flashpoint

diesel

MSC 101• Amendments• Referral to other

sub-committees

MSC 102• Amendments• Approval• Adoption

Page 11: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Launching Methanol Marine Fuels

FUEL CELLDUAL FUEL PROJECT and R&D

7x +4 1x 1x 1x 1x

2 strokeMAN

4 strokeWärtsila

high speedScania,

Weichai, a.o.

Serenergy fuel cells

propulsion hotel load

MOL, WL,Marinvest

Stena Line Swedish Maritime Admin

Innogy Viking LineSUMMETH/MARTEC, Lean Ships,

Methaship, Billion Miles, FiTech, India IWA, PCG Product Vessel,

NTU Test Bed, Green Maritime Methanol, FastWater, RiverCell,Abeking & Rasmussen

chemicaltankers

ROPAXferry

Pilotboat

Touristboat

FerryCruise ships, fishing boat,

barge, dredge, a.o.

SI hybrid, CI dual fuel, fuel cells, etc.

new build retrofit retrofit retrofit retrofit new build & retrofit

Page 12: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Industry welcomes four new ocean-going vessels capable of running on methanol

https://www.methanex.com/news/industry-welcomes-four-new-ocean-going-vessels-capable-running-methanol

• “We are very happy to be working with Waterfront Shipping again on this innovative technology. With seven engines already in operation and proven in the field, this new order confirms the ME-LGI concept as a mature technology. Since this dual-fuel engine entered the market in 2016, its price has dropped considerably, which makes it an even more attractive propulsion option. Allied with its environmental credentials and convenience of use when employing methanol as a fuel, we are confident the ME-LGI will continue its promising progress,” states René Sejer Laursen, Promotion Manager, MAN Diesel & Turbo.

Page 13: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

MAN Duel-Fuel EngineWaterfont Configuration

https://marine.man-es.com/two-stroke/2-stroke-engines/me-lgim

Page 14: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

• MI has joined an industry consortium being organized by TNO to study the use of (green) methanol in short sea shipping: https://www.einnews.com/pr_news/477078882/major-dutch-maritime-companies-join-green-maritime-methanol-project

• The initiative is a spin off from the Horizon 2020 LeanShips project https://www.leanships-project.eu/home/

• TNO is an internationally renowned research institutehttps://www.tno.nl/en/focus-areas/buildings-infrastructure-maritime/roadmaps/maritime-offshore/clean-ships/

• Comparison of (renewable) methanol with alternatives for short sea shipping (LNG, H2, biodiesel and electrical)

• Technical design Green Methanol Concepto Possible design options: Dual Fuel; Single Fuel (SI engine); Emulsifiers

• Logisticso Ship operations and Supply chain (incl. e-methanol and bio-methanol)

• Financial analysiso CAPEX and OPEX

Page 15: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

MI joined a consortium which has passed the initial round for potential European Horizon 2020 funding in response to a call for “Retrofit Solutions and Next Generation Propulsion for Waterborne Transport”

Consortium Team: o Lund University/Gent University; SSPA; ScandiNAOS;

ABC Engines; Meyer Werft; Lloyds Register; Port of Antwerp; MI

FASTWATER Project

Page 16: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Methanol is among the lowest emission fuels for marine engines

Emissions Reductions

Source: Stena Lines – Wartsila 4-Stroke Engines: Emission reductions when compared to alternative fuels currently available (fuel oil)

Page 17: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Emissions Reductions: Tier III NOx

Page 18: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Methanol / Water Blending (Emulsification)

Source: MAN

Page 19: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

https://www.maritime.dot.gov/sites/marad.dot.gov/files/docs/innovation/meta/11056/marine-methanol-report-20180810final-002.pdf

Emission Reductions: CO2

Page 20: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Methanol storage capacity estimates (thousand tons)

Methanol is world’s most widely shipped chemical commodity

30 million metric tons of methanol moved from one continent to another in 2018

Page 21: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Methanol is easy to handle

• Liquid at atmospheric pressure• Available in many ports around the world and along rivers• Low infrastucture cost• Flexible, modular system• Environmentaly friendly as it’s biodegradable

Page 22: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Cost Competitive Fuel Cost vs. Marine Gas Oil (MGO)

Page 23: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Comparing apples to apples

Source: Green Pilot Project

Page 24: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Methanol[1]

15,400 (mg/l)

Additional Source: MethaShip

Safer for marine environmentLC50, LC = LETHAL CONCENTRATIONConcentration in water, at which half the population died within specified test duration

Safer than Diesel by a factor of 240 times

Safer than Gasoline by a factor of 1900 times

Page 25: Methanol: An Emerging Alternative Marine Fuel...Argus Marpol Strategy Summit. 25 April 2019 – Houston. . MI History • The Methanol Institute (MI) was established in 1989 to lobby

WWW.METHANOL.ORG

Safer for marine environment

Source: MethaShip