Singapore is moving to cement its position as a global maritime leader with plans to license methanol bunkering as early as 2026. Teh move, announced Monday by the Maritime and Port Authority, comes as the shipping industry faces increasing scrutiny to reduce its carbon footprint and meet aspiring international emissions targets[[1]]. Following a competitive application process that began in March,three companies have been selected to supply methan
Singapore is poised to become a key hub for sustainable shipping as it prepares to issue its first licenses for green methanol bunkering in 2026.
The city-state, a global leader in maritime refueling, announced Monday it will begin permitting companies to supply methanol as a marine fuel, a move aimed at reducing carbon emissions from the global shipping industry. This initiative comes as the sector faces increasing pressure to decarbonize and meet ambitious emissions reduction targets set by international regulators.
Three companies – Global Energy Trading Pte Ltd, Golden Island Pte Ltd and PetroChina International (Singapore) Pte Ltd – were selected from a pool of 13 applicants following a call for proposals launched in March, according to the Maritime and Port Authority (MPA). They will begin supplying methanol to ships in the Port of Singapore starting January 1, 2026.
“This marks a significant milestone towards the scaling up of methanol bunkering and the realization of Singapore’s ambition to be a leading sustainable multi-fuel hub,” the MPA said in a statement.
Green methanol, also known as biomethanol, is produced from residual carbon dioxide (CO2) and “green hydrogen,” created using renewable energy to split water molecules. Shipping companies estimate that green methanol has a significantly lower carbon footprint than traditional marine fuels, potentially reducing carbon emissions by up to 65%.
The five-year licenses are designed to encourage early development of methanol bunkering infrastructure, giving companies time to build capacity, establish supply chains, and solidify investments as the market grows, the MPA explained.
Global maritime shipping, which typically relies on diesel and other heavy fuels, currently accounts for at least 3% of global greenhouse gas emissions, according to data from the United Nations Conference on Trade and Development (UNCTAD). New guidelines from the International Maritime Organization (IMO) mandate that emissions from the shipping sector must be reduced by at least 40% by 2030 and brought to net-zero by around 2050 to align with the goals of the Paris Agreement on climate change.
The strong interest in the licensing call, the MPA noted, “reflects the growing momentum within the industry for lower-emission marine fuels.”
