The white paper finds that methanol is gaining attention as a practical and scalable alternative fuel for deep-sea shipping as the maritime sector explores multiple decarbonisation pathways. This is supported by over 450 methanol-capable vessels in operation and on order and technical solutions now available for all major ship types.
Industry stakeholders are already investing in methanol, according to the white paper, with China accounting for 43 percent of planned global methanol production capacity. However, as with all alternative fuels, methanol’s future role will depend on a combination of regulatory, economic, and operational factors.
“As the maritime industry explores pathways to a lower-carbon future, it is important to consider a range of practical and scalable solutions” said Knut Ørbeck-Nilssen, CEO Maritime at DNV. “There is no one-size-fits-all answer, and different shipping segments and geographies will require different approaches. Methanol is one option that draws on established technologies and infrastructure, and it is encouraging to see the industry’s growing interest in a variety of alternative fuels.”
Methanol is sulfur-free, produces negligible soot, and emits significantly less NOx than fuel oil. Certain bio- and e-methanol pathways can deliver very low or even negative lifecycle emissions and methanol’s compatibility with existing port infrastructure and the availability of interim bunkering solutions may also reduce complexity and cost for shipowners.
However, the report notes that cost and availability remain significant barriers, as is the case for many alternative fuels. Bio-methanol prices in 2025 average around $2,500 per tonne MGOe, roughly three times the cost of marine gas oil, while global production stands at just 2.2 million tonnes, far below the potential demand of up to 60 million tonnes by 2040.
The report models four demand scenarios, showing that regulatory frameworks such as the IMO’s Net-Zero Framework and FuelEU Maritime could be decisive in scaling up adoption.
Methanol also provides fuel flexibility: dual-fuel engines can operate on methanol, biodiesel, or conventional fuels, and, with minor modifications, on ethanol. DNV’s Fuel Selector service and Alternative Fuels Insight (AFI) platform offer shipowners data-driven guidance on compliance costs and transition strategies.
The fuel can be a renewable fuel when produced from sustainable resources like biomass or captured carbon dioxide and renewable hydrogen, when it is often called green methanol. This contrasts with traditional fossil-based methanol and offers a low-carbon alternative for transportation, energy, and industrial use, with potential for cleaner combustion in vehicles and compatibility with some existing infrastructure.
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