Proman to choose methanol for its future fleet

Proman’s shipping division plans to make an eventual full switch to methanol from conventional oil-based fuels, betting on methanol’s potential decarbonization effects and proven propulsion technology.

The Switzerland-headquartered methanol producer has established a 50-50 joint venture with Swedish tanker firm Stena Bulk, Proman Stena Bulk, to operate six MR dual-fuel tankers capable of running on methanol, of which four already in operation and two scheduled for delivery by early 2024.

Three of the ships are owned by Proman and three by the JV. Each of them could consume 11,500-12,500 mt/year of methanol, according to company announcements.

Despite their dual-fuel capability, Proman’s executive director in marketing, logistics and shipping head Anita Gajadhar suggested methanol would be the company’s preferred fuel.

The newbuild price of a MR tanker rose to $44.1 million in February from $42.8 million in 2022 and $37.6 million in 2021, according to consultancy Maritime Strategies International.

But Proman is developing a gas-to-methanol plant with an anticipated capacity of up to 1.8 million mt/year with TA’ZIZ in Abu Dhabi, and Gajadhar said the production will result in more shipping requirements.

Proman separately manages 11 time-chartered chemical tankers, and Gajadhar suggested the company would also opt for methanol-fueled ships when replacing the charters.

Globally, 23 methanol-powered tankers are in operation and two on order, according to classification society DNV. Waterfront Shipping, a subsidiary of Methanex, another major methanol producer, has 19 ships capable of running on the fuel.

Proponents said methanol propulsion is cheaper than LNG, another popular alternative fuel, that its supply is available in over 120 ports worldwide, and that its use requires little modification to existing bunkering infrastructure.

Container carriers like HMM and Maersk have ordered a total of 94 methanol-capable boxships, exceeding all other sectors, shipbroker Braemar estimated.

Industry association Methanol Institute estimates global methanol production capacity reaches 110 million mt/year, but the current supply is generally produced from coal or natural gas. The EU estimates such gray methanol has more lifecycle greenhouse gas emissions than 0.5%S fuel oil, the most common type of bunker fuel now.