April 28, 2023

Industry to explore green methanol bunkering at the Port of Melbourne

Graphic: a molecule of methanol (CH3OH).

A Memorandum of Understanding (MoU) has been signed between Port of Melbourne, Maersk, ANL (a subsidiary of CMA-CGM), Svitzer, Stolthaven Terminals, HAMR Energy and ABEL Energy to explore the commercial feasibility of establishing a green methanol bunkering hub at the Port of Melbourne.

The collaboration will examine a potential project involving the transportation of green methanol from production sites in Bell Bay, Tasmania (ABEL Energy) [see e.g. “Shipping Australia welcomes news of EUR1.1 bn green methanol investment in Tasmania“] and Portland, Victoria (HAMR Energy) to Port of Melbourne for storage and bunkering services.

The MoU provides a starting point for the parties to work together to explore the various elements of establishing a green methanol bunkering hub, and identify any challenges that would need to be addressed.

Together, Port of Melbourne, Maersk, ANL (a subsidiary of CMA-CGM), Svitzer, Stolthaven Terminals, HAMR Energy and ABEL Energy bring a wealth of expertise and experience in the shipping and energy industries, making them ideal partners for this initiative.

“Decarbonisation of the maritime industry is really gaining pace. As Australia’s largest container port with around 3,000 ships visiting annually, it makes sense that we look at ways to work together with customers, service providers and producers to understand the needs of the market,” said Port of Melbourne CEO, Saul Cannon.

Maersk Regional Head of Market, Oceania, My Therese Blank, added: “Maersk has already ordered container vessels that will be operated on green methanol, which is a proven solution for reducing the shipping industry’s carbon emissions and mitigating its impact on the environment. As an island nation with high dependency on ocean transport, it’s vital that Australia takes a leadership role to enable the fuel transformation from fossil to green fuel”.

ANL Managing Director, Shane Walden commented: “Alternative energies are key to the reduction of carbon emissions throughout the supply chain. Green Methanol presents another excellent opportunity for the shipping industry to decarbonise and we are supportive of the robust exploration of a bunkering hub such as this”.

Svitzer Global Head of Green Ports, Ivan Spanjic added: “It is through a partnership approach that we will best meet the future decarbonisation challenges facing the wider shipping industry. Svitzer welcomes the MOU as an important step to driving greener shipping solutions in Australia,” Mr Spanjic said.

Methanol – the chemical

As you can see from the diagram at the top of this article, methanol is a compound chemical. On the right-hand side in this diagram, a hydrogen atom (grey) is bound to an oxygen atom (red), which is bound to a carbon atom (centre). The carbon atom is also bound to three atoms of hydrogen.

Combustion of methanol produces water (a combination of oxygen and hydrogen) and carbon dioxide (because there is a carbon atom in each molecule of methanol). Methanol is considered to be a green fuel because it can be manufactured using renewable energy and renewable feedstocks.

Why is methanol considered to be green?

Electricity (from, say, solar power or wind power) is used to split water into its two component gases: oxygen and hydrogen. Carbon can be obtained from feeding organic wastes (agricultural wastes, for example) to microbes. They will produce a variety of compounds (which may well commercially valuable) including carbon dioxide, which supplies the carbon for methanol. Combine the various materials in the right proportions under the right conditions and the result is methanol.

Green methanol is green because its carbon content originated from the atmosphere. Carbon dioxide is captured by plants during their respiration and the carbon is used in photosynthesis to create glucose (C₆H₁₂O₆) and carbohydrates (Cx(H2O)y) (food for plants, basically).

Plant power!

Plant cells are usually made of cellulose ((C6H10O5)n) or lignin (a very complex set of molecules). All of these – glucose, carbohydrates, cellulose and lignin, contain carbon, which is incorporated into the plant body. When this material is digested by microbes, the carbon forms new molecules (e.g. carbon dioxide), which is then incorporated into the fuel, methanol.

As combustion of methanol releases carbon dioxide, combustion merely returns carbon dioxide back to the atmosphere from where it came and, unlike fossil fuels, does not add extra carbon dioxide into the atmosphere. If onboard carbon capture and storage becomes a reality (see e.g. “K” Line installs world-first carbon capture plant, or Greening HMM, or Shipping Australia welcomes news of EUR1.1bn green methanol investment in Tasmania) then, potentially, methanol-burning ocean-going ships could remove carbon dioxide from the atmosphere.

Facebook
Twitter
LinkedIn
Email

Search

Become a Member

Membership is open to all ship owners, operators and agents both Australian and International providing services to or within Australia.

Upcoming Events

Oct 10
Industry Gala Night 2026
Industry Gala Night 2026 – A Masquerade Affair Shipping Australia Limited Queensland is delighted to announce the return of our highly anticipated Industry Gala Night 2026. Following the outstanding success of last year’s sold-out event, we are excited to once again bring together industry leaders, valued partners, sponsors, and supporters for an unforgettable evening of...
Sep 3
SAL’s New South Wales State Committee Spring Luncheon
PROUDLY SPONSORED BY MAIN SPONSOR  SUPPORT SPONSOR    GUEST SPEAKER The Hon. Natalie Ward MLC Shadow Minister for Transport and Roads Deputy Leader of the Liberal Party Sydney Harbour Marriott on Pitt Street, Sydney CBD Thursday, 3 September 2026 1200hrs for 1230hrs  

Latest News

FONASBA’S annual meeting to take place in Tokyo in October!
This year in Tokyo, FONASBA’s 2026 Annual Meeting (11-14 October) programme will feature engaging plenary sessions with leading international and local speakers, exploring current challenges and opportunities in shipping, logistics, and maritime policy. There will be ample opportunity for networking, allowing participants to build new relationships and deepen existing ones. We are especially pleased to...
Shipping Australia is disappointed with Pilbara Ports fee hikes and non-transparency, and the lacking response of Western Australian Ports Minister Dawson
Shipping Australia is disappointed with the ongoing fee hikes at the Pilbara Ports Authority and the response of the Hon Stephen Dawson MLC, WA Minister for Ports. Shipping Australia is also disconcerted by the ongoing fee hikes for services across Australian ports, which are often large, imposed out-of-cycle, and at short notice. In relation to...

Latest Magazine

Shipping Australia Winter 2026
June, 2026

Subscribe to the Signal Newsletter

Be the first to know about releases and industry news and insights or catch up on any editions you missed.

Search