Methanol is Driving the Maritime Transition; Can the Industry Keep Up?

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The marine industry stands at a crossroads.

A recent Reuters piece, “Shipping industry still at sea as it tries to navigate to net zero” (June 4, 2025), illustrates a truth we’re witnessing across the global energy landscape: pressure to decarbonize is increasing, but the path ahead remains uncertain for many vessel operators and port authorities.

The International Maritime Organization (IMO) is planning to implement emissions caps and worldwide carbon pricing by 2028, and the European Union plans to include shipping in its Emissions Trading System, sending a clear message: the time to act is now.

But knowing where to begin is another story.

Today’s shipowners are considering a variety of propulsion choices, including hydrogen and ammonia, LNG, biofuels, and nuclear.  There are advantages and disadvantages to each fuel pathway.  One approach, however, is already shown viability at scale: methanol.

Why Methanol is Getting Real-world Momentum?

  • Leading players like Maersk has launched methanol-powered dual-fuel vessels.
  • Methanol is more easily stored, transported, and adopted with existing infrastructure than hydrogen or ammonia.
  • This gives a clear path to e-methanol, a low-carbon variant made from green hydrogen and collected CO₂, which aligns with stricter climate legislation.

However, issues remain:

  • Green methanol supply remains scarce and poorly distributed.
  • The bunkering infrastructure is growing but not yet internationally consistent.
  • E-methanol remains 2–4 times more expensive than fossil methanol, making commercial adoption challenging without legislative assistance or long-term procurement certainty.
  • Many operators are hedging their bets across multiple technologies, delaying deep investment in scalable, near-term solution.

HEG’s Approach: Practical, Phased, and Future-Ready

At Hydrogen Era Global (HEG), we believe that real progress comes from meeting the industry where it is now while also preparing it for the future.

We focus on outcomes rather than technologies.

For shipping and port operators who find the transition to green methanol difficult due to pricing, supply, or infrastructural constraints, we recommend gray methanol as a practical starting point.  It enables faster and wider adoption today, with a clear upgrade route to green methanol and hydrogen as markets expand.

Our long-term roadmap includes comprehensive decarbonization, but we begin by making change possible.

What We Are Building At HEG

  • Methanol Internal Combustion Engines (ICEs): Optimized for lower emissions and easy integration into existing marine systems.
  • Methanol Generators: Provide dependable power for maritime and industrial applications, making them perfect for hybrid and off-grid deployments.
  • Future-ready systems: Use conventional methanol now and convert to e-methanol or hydrogen with minimal disturbance.

Our involvement in the maritime energy transition

  • Deliver dependable, immediately deployable technologies.
  • Empower partners to navigate evolving fuel markets and policies with flexibility.
  • Support a realistic, scalable transition from fossil fuels to methanol, and eventually to hydrogen.

The marine industry does not have to wait for a perfect solution, or gamble on unproven ones.

Methanol provides a clear and viable path. And with HEG, that approach becomes more realistic, cost-effective, and future-ready.

To find out how HEG may help with your transition strategy, please contact us at [email protected] or [email protected].