VIDEO: Port of Long Beach launches $1M methanol bunkering challenge

Though dual-fuel methanol capable vessels are already calling the Port of Long Beach, methanol bunkering is not yet available there. Aiming to change that, the port has established a $1 million award for the first oceangoing vessel to refuel at its harbor with methanol on a commercial scale in an effort to jumpstart the industry’s transition to cleaner, lower-carbon fuels like methanol. Approved Monday by the Long Beach Harbor Commission, the Clean Fuel Bunkering Challenge is expected to send a strong signal to the global market of the interest in expanding the availability of clean marine fuels.      “We know the shipping industry is considering moving toward adopting methanol marine fuel for some great reasons – they want to reduce greenhouse gas emissions and improve air quality. Today, we’re giving them 1 million more reasons to embrace clean fuels,” said Port of Long Beach CEO Dr. Noel Hacegaba. “T“We know the shipping industry is considering moving toward adopting methanol marine fuel for some great reasons – they want to reduce greenhouse gas emissions and improve air quality. Today, we’re giving them 1 million more reasons to embrace clean fuels,” said Port of Long Beach CEO Dr. Noel Hacegaba. “This is about demonstrating that we’re serious about creating a North American market for methanol bunkering, and giving the industry an incentive to invest. We’re also seeing how rising fuel costs are strengthening the case for energy diversification and greater energy independence.”      “The Port of Long Beach has been advancing the commercial availability of clean technology and sustainability solutions for decades,” said Long Beach Harbor Commission President Frank Colonna. “This is the most direct and practical lever we can pull to demonstrate the feasibility of bunkering methanol fuel in San Pedro Bay.”

According to the port, when compared to conventional marine fuel, a ship running on methanol emits significantly less pollutants, reducing nitrogen oxide emissions by up to 50%, sulfur oxides by 95% and particulate matter by 90%. Major global shipping companies are heavily investing in dual-fuel methanol vessels, some of which are already visiting Long Beach. However, methanol fuel is not currently available at the port, necessitating methanol-capable ships to depart using conventional bunker fuel.

With current pricing, refueling a vessel with methanol would cost about $1.5 million per call compared to approximately $1 million for conventional fuel. The port award is intended to offset the difference, and provide another $500,000 toward additional costs including development of operational and safety procedures and working with fuel providers and distributors, as well as local permitting agencies.

The Clean Fuel Bunkering Challenge is part of a concerted strategy by the Port of Long Beach to encourage cleaner ships and clean marine fuels, with development informed by discussions with shipping partners about their challenges and interests. It was also inspired by the commercial availability of the fuel at the ports of Shanghai and Singapore, two participants in Green Shipping Corridors with the San Pedro Bay ports. Within the next year, the port intends to update the Green Ship Incentive Program to encourage more routine cleaner ship visits, which could further boost the methanol market. Pending revisions include updated scoring and incentive metrics, in collaboration with other international ports.      Establishment of the Clean Fuel Bunkering Challenge was welcomed by Pacific Environment,

“Frontline communities in Los Angeles and Long Beach suffer from some of the worst pollution in the nation,” said Cristhian Tapia-Delgado, climate campaigner for Southern California, Pacific Environment. “We applaud the Port of Long Beach for approving $1 million to move ocean shipping lines to clean bunkering, but we urge the port to do everything possible to ensure the cleanest, safest and most sustainable alternative fuels are the ones that achieve long-term success at the port.”

“The Port of Long Beach has long served as a national leader in deploying shore power infrastructure and advancing emissions-reduction technologies, and we must ensure this momentum continues as the next generation of cleaner vessels enters service,“ notes Pacific Environment. “Achieving the Port of Long Beach’s goals of phasing out emissions from all seaport-related activities will require a large-scale transition to next-generation maritime fuels capable of achieving low- and near-zero greenhouse gas emissions.“      “We know there is no single, magic fuel solution today, but methanol is emerging as one of the leading fuel alternatives in the maritime industry,” said Davina Hurt, climate policy director for Pacific Environment. “As this transition moves forward, shippers and the port must ensure that robust safety precautions must be in place to protect port workers and surrounding communities. At the same time, we urge shipping companies and the Port of Long Beach to carefully choose the cleanest and safest fuel today, choosing any type of methanol is short-sighted. Not all methanol pathways are equal, and long-term investments should focus on truly green methanol solutions that deliver the strongest climate and public health benefits.”