The Port of Long Beach has established a $1m award for the first oceangoing vessel to refuel with methanol on a commercial scale in its harbour

Vessels that run on methanol as well as conventional fuels are being bought by some of the world's biggest shipping companies

In an effort to encourage the industry’s transition to cleaner, lower-carbon fuels like methanol, the Port of Long Beach has established a $1m award for the first oceangoing vessel to refuel with methanol on a commercial scale in its harbour. The Clean Fuel Bunkering Challenge, approved by the Long Beach Harbour Commission on Monday, is expected to signal to the global market the interest in expanding the availability of clean marine fuels.

Creating a North American market for methanol bunkering 

"It is known that great reasons are being considered by the shipping industry for moving towards the adoption of methanol marine fuel – greenhouse gas emissions are to be reduced and air quality improved. Today, we’re giving them one million more reasons to embrace clean fuels,’ said Port of Long Beach CEO Dr Noel Hacegaba. ‘This is about demonstrating our commitment to creating a North American market for methanol bunkering and providing the industry with an incentive to invest. We’re also witnessing how rising fuel costs are strengthening the case for energy diversification and greater energy independence.”

The feasibility of bunkering methanol fuel in San Pedro Bay.’

Frank Colonna, President of the Long Beach Harbour Commission, has stated that the Port of Long Beach has been at the forefront of promoting the commercial availability of clean technology and sustainability solutions for many years. ‘This is the most direct and practical way for us to demonstrate the feasibility of bunkering methanol fuel in San Pedro Bay.’

The world's largest shipping companies are purchasing vessels that run on methanol.

Vessels that run on methanol as well as conventional fuels are being bought by some of the world's biggest shipping companies. A number of these ships have already called at Long Beach. According to a statement by the Port, methanol fuel is not currently available at the Port, meaning that ships capable of using methanol must depart using conventional bunker fuel.

Related: Los Angeles Business Journal Spotlights Noel Hacegaba's vision for Port of Long Beach

 Refuelling a vessel with methanol would cost around $1.5 million 

The Port of Long Beach said on Wednesday that, with current pricing, refuelling a vessel with methanol would cost around $1.5 million per call, compared to approximately $1 million for conventional fuel. The Port statement explains that the Port Award is designed to balance out the difference, with an additional $500,000 allocated to cover costs such as developing operational and safety procedures, liaising with fuel providers and distributors, and collaborating with local permitting agencies.

The Port of Long Beach is working on a strategy to encourage cleaner ships and clean marine fuels. This strategy includes the Clean Fuel Bunkering Challenge. The Port talks to shipping partners about their challenges and interests to inform the development of the Challenge.

The initiative 

The initiative was also inspired by the commercial availability of the fuel at the ports of Shanghai and Singapore, which are participants in the Green Shipping Corridors alongside the San Pedro Bay ports. The Port intends to update the Green Ship Incentive Programme within the next year to encourage cleaner ships to visit more regularly. According to the Port, this could further boost the methanol market

About: The Port of Long Beach.

The Port of Long Beach is a premier, 3,200-acre seaport in Southern California and one of the most vital gateways for U.S.–Asian trade. It handles over $300 billion in annual trade, serving 175 shipping lines and moving millions of container units yearly

#The Port of Long Beach #Clean Fuel Bunkering Challenge,# Dr Noel Hacegaba.#Frank Colonna #First Vessel #Methanol # Million-Dollar Award#Green Shipping Corridors