SGMF Publishes Life Cycle Assessment Confirming Methanol’s Emissions Reduction Potential as Marine Fuel

The Society for Gas as a Marine Fuel (SGMF) has published a new Life Cycle Assessment (LCA) on methanol as a marine fuel, concluding that methanol produced from renewable energy sources can deliver substantial reductions in greenhouse gas (GHG) emissions compared with conventional fuel oil.

What did the SGMF study examine?

The assessment evaluated 15 different methanol production pathways, ranging from fossil-based to renewable and synthetic routes. It found that emissions performance varies considerably depending on the feedstock and energy source used, with renewable and synthetic methanol pathways offering the greatest potential for cutting shipping’s carbon footprint. The study was conducted by engineering consultancy WSP, using a methodology consistent with SGMF’s earlier fuel assessments.

How were the emissions calculations conducted?

The analysis based its emissions calculations on the performance of a broad range of marine engine types, including medium-speed four-stroke engines and low-speed two-stroke engines, the two dominant propulsion configurations used across the global merchant fleet. This engine-specific approach allows shipowners and operators to compare methanol’s emissions profile against their existing or planned propulsion systems more precisely than a single averaged figure would allow.

How does this fit into SGMF’s wider fuel assessment programme?

The methanol LCA follows SGMF’s third edition Life Cycle Assessment of liquefied natural gas (LNG), released earlier in 2026, and its first ammonia LCA, published in 2024. Together, the three studies give shipowners, charterers, regulators and fuel suppliers a consistent, science-based basis for comparing the emissions performance of the leading alternative marine fuels currently being adopted or trialled across the industry.

Why does the timing of this study matter for shipping?

The publication arrives as the shipping industry works towards the International Maritime Organization’s (IMO) revised greenhouse gas strategy, which sets targets for reducing the sector’s carbon intensity and reaching net zero emissions by around mid century. Methanol has emerged as one of the more commercially advanced alternative fuels, with a growing number of dual-fuel methanol vessels already on order or in service among major container lines, and bunkering infrastructure expanding at key ports including Singapore, Rotterdam and Shanghai. Robust, independently verified life cycle data is considered essential for shipowners making long-term newbuilding and fuel procurement decisions, as well as for regulators assessing compliance pathways under the IMO framework.

What limitations did SGMF flag in the study?

SGMF noted that the rapid pace of innovation in alternative fuel production means life cycle assessments require regular updates to remain accurate. The organisation said future revisions of the methanol study would need to reflect ongoing technological developments and the latest greenhouse gas intensity data as production methods evolve and scale up commercially.

What further work has SGMF identified?

The report also acknowledged that additional production-specific pathways, including co-processing approaches that combine methanol production with other industrial processes, could offer further emissions reduction opportunities. SGMF said these pathways may warrant separate assessment in future studies, suggesting the current LCA should be viewed as part of an evolving body of research rather than a final or exhaustive analysis.

What does this mean for the wider marine fuel transition?

With LNG, ammonia and now methanol all subject to peer-reviewed life cycle assessment under a consistent methodology, the shipping industry has an increasingly comparable evidence base to weigh the emissions trade-offs between competing alternative fuel pathways. As vessel owners, ports and fuel suppliers continue to invest in dual-fuel newbuildings and bunkering infrastructure, such assessments are likely to play a growing role in shaping procurement decisions and regulatory compliance strategies across the global fleet.