Singapore has the potential to supply over 1 million metric tons of low-carbon methanol annually by 2030 to meet rising demand for alternative bunker fuel, a Singapore minister said on Tuesday.
Singapore's Maritime and Port Authority (MPA) late last year started seeking proposals from companies to supply methanol as a marine bunker fuel at Singapore from 2025.
"On aggregate, the submissions have the potential to supply over one million tonnes per annum of low-carbon methanol by 2030," said Amy Khor, a senior minister of state, at the Singapore Maritime Week conference on Tuesday.
The submissions provide strong indications that the industry is preparing for methanol bunker demand to scale up in the coming years, said Khor.
The port authority will unveil more details on the findings on Wednesday and these will go into the development of a methanol bunkering regulatory framework, she added.
National standards on supplying methanol as a marine fuel in Singapore are expected to be published in 2025, said Khor.
The proposals emerged ahead of an expected uptick in methanol-powered ships, as companies ramped up orders of such vessels amid plans to cut carbon emissions with cleaner fuels.
Singapore, which is the world's largest bunkering hub, conducted its first bio-methanol refuelling operation for a Maersk ship in July this year.
Interest in methanol bunkering has grown as the shipping industry works towards carbon emission targets, with major shipowners and ports stepping up methanol bunkering-related projects globally.
(Reuters - Reporting by Jeslyn Lerh; editing by Miral Fahmy)