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Green Methanol

Production and Properties

Methanol is the simplest alcohol. Its chemical formula is CH3OH, and it is a clear liquid at normal room temperature. Most methanol in the world today is made from natural gas or coal, which releases a lot of carbon dioxide. Green methanol is the same chemical, but it is made from clean sources: either from plant waste (biomass) or from green hydrogen combined with captured carbon dioxide.

Because the raw materials are clean, green methanol can cut the climate impact of fuels like the oil used in ships.

Why does the world need it?

Ships carry most of the world's traded goods. Large ships burn heavy fuel oil, a thick and dirty fuel left over from refining crude oil. This releases carbon dioxide, sulphur and soot. Batteries are too heavy for long ocean trips, so ships need a liquid fuel that is cleaner. Green methanol is one of the strongest options, along with green ammonia and liquefied natural gas (LNG).

The colours of methanol

Just like hydrogen, methanol is often given a "colour" based on how it is made. The molecule is always the same. Only the raw material and the pollution differ.

  • Grey methanol: Made from natural gas. This is the most common type today.
  • Brown or black methanol: Made from coal. China makes a large amount this way.
  • Blue methanol: Made from natural gas or coal, but the carbon dioxide released is captured and stored.
  • Bio-methanol (a type of green methanol): Made from biomass such as crop stubble, forest waste, municipal solid waste or biogas.
  • E-methanol (a type of green methanol): Made by joining green hydrogen with carbon dioxide. "E" stands for electricity, because the hydrogen comes from splitting water using renewable electricity.

How is e-methanol made, step by step?

  1. Solar or wind power runs a machine called an electrolyser. It splits water (H2O) into hydrogen and oxygen. This hydrogen is called green hydrogen.
  2. Carbon dioxide is collected. It can come from a factory chimney, a biogas plant or even directly from the air (called direct air capture).
  3. The hydrogen and carbon dioxide are passed over a catalyst (a substance that speeds up a chemical reaction without being used up). They combine to form methanol and water.
  4. The methanol is separated and stored as a liquid.

You can think of it like this: the carbon dioxide that would have gone into the air is "borrowed" to make fuel. When the fuel is burned, the same carbon dioxide goes back out. So, over its whole life, the fuel adds very little new carbon to the air.

How is bio-methanol made?

Biomass is heated with a limited amount of oxygen. This turns it into a gas mixture of carbon monoxide and hydrogen, called syngas (synthesis gas). The syngas is then converted into methanol using a catalyst. Methanol can also be made from biogas produced by rotting waste.

Key properties of methanol

These facts matter for both exams and real use:

  • Liquid at normal temperature: Methanol boils at about 65°C. So, unlike hydrogen or LNG, it does not need very cold tanks or very high pressure. It can be stored in ordinary tanks and moved by road tankers, just like diesel.
  • Low flash point: Its flash point is about 11 to 12°C. The flash point is the lowest temperature at which a liquid gives off enough vapour to catch fire from a spark. Because this is low, methanol is treated as a "low-flashpoint fuel" and needs special safety rules on ships.
  • Lower energy content: Methanol carries roughly half the energy of heavy fuel oil for the same amount of fuel. So a ship needs about twice the tank space to travel the same distance.
  • Toxic but biodegradable: Methanol is poisonous if swallowed or breathed in large amounts. But it dissolves in water and breaks down quickly in nature. So a spill at sea does far less long-term harm than an oil spill.
  • Cleaner burning: Burning methanol releases almost no sulphur oxides and very little soot (particulate matter). It also releases less nitrogen oxides than heavy fuel oil.

How do ships use it?

Most new methanol ships use dual-fuel engines. These engines can run on methanol or on normal fuel oil. This helps because green methanol is not yet available at every port. The first methanol-enabled container ship, Laura Maersk, was named in Copenhagen in September 2023. Many shipping companies have since ordered methanol-capable ships.

Global rules for methanol ships

The International Maritime Organization (IMO), the United Nations body for shipping, makes the safety rules. Ships using fuels with a low flash point are covered by the IGF Code (International Code of Safety for Ships using Gases or other Low-flashpoint Fuels). For methanol, the IMO's Maritime Safety Committee approved interim guidelines (MSC.1/Circ.1621) in November 2020.

A revised version of these guidelines was finalised by an IMO sub-committee in September 2026 and now awaits approval. Separately, ISO 6583:2024 sets the quality standard for methanol used as marine fuel.

India's position and Indian examples

  • Methanol Economy programme: NITI Aayog has led India's effort on methanol since 2016. The aim is to cut oil imports and pollution, and to turn high-ash Indian coal, municipal waste and carbon dioxide into methanol.
  • M15 fuel: M15 is petrol mixed with 15% methanol. The Automotive Research Association of India (ARAI), Pune, has completed tests on it, and Indian Oil Corporation opened an M15 dispensing station at Tinsukia, Assam.
  • Pilot plants: BHEL Hyderabad set up a 0.5 tonne-per-day plant to turn high-ash Indian coal into methanol. Thermax and IIT Delhi demonstrated a 1 tonne-per-day pilot plant.
  • Ports: The Ministry of Ports, Shipping and Waterways has picked three major ports, Deendayal (Kandla), Paradip and V.O. Chidambaranar (Tuticorin), to be developed as hydrogen hubs. Green methanol bunkering is part of this plan.

Commonly confused concepts

  • Methanol vs ethanol: Methanol (CH3OH) has one carbon atom and is poisonous to drink. Ethanol (C2H5OH) has two carbon atoms and is the alcohol in drinks. India's main petrol blending programme (E20) uses ethanol made from sugarcane and grains, not methanol.
  • Green methanol vs green ammonia: Both are clean fuels made using green hydrogen. Methanol contains carbon and is a liquid at room temperature. Ammonia (NH3) contains no carbon, but it must be kept cold or under pressure and is highly toxic.
  • Green methanol vs LNG: LNG is natural gas cooled to about minus 162°C. It cuts some pollution but is still a fossil fuel. Green methanol can be nearly carbon-neutral over its life.
  • Bunkering vs refining: Refining makes fuel from crude oil. Bunkering only means supplying fuel to ships.

Issues, criticism and the way forward

  • High cost: Green methanol today costs about two to three times as much as normal ship fuel. Without carbon prices or subsidies, many ship owners may not switch.
  • Limited supply: Very little green methanol is made in the world today, and some planned projects have been cancelled.
  • Less energy per tank: Ships need larger tanks or must refuel more often.
  • Safety: Its low flash point and toxicity need careful handling, trained crews and strict port rules.
  • Carbon source: E-methanol is only truly clean if the carbon dioxide comes from biomass or the air. If it comes from a coal plant, the climate benefit is smaller.
  • Way forward: Experts point to cheaper green hydrogen, long-term supply contracts, global carbon pricing for shipping through the IMO, and "green shipping corridors" where ports on a route agree to offer clean fuel.

Concepts to Know

  • Bunkering: Supplying fuel to ships. A port that does this is a bunkering hub, like a petrol pump for ships.
  • Green hydrogen: Hydrogen made by splitting water using renewable electricity, so almost no carbon dioxide is released.
  • Electrolyser: A machine that uses electricity to split water into hydrogen and oxygen.
  • Syngas: A mixture of carbon monoxide and hydrogen made by heating biomass or coal with little oxygen. It is a starting point for making methanol.
  • Catalyst: A substance that speeds up a chemical reaction without being used up.
  • Flash point: The lowest temperature at which a liquid gives off enough vapour to catch fire from a spark. Lower flash point means more fire risk.
  • Dual-fuel engine: An engine that can run on two different fuels, such as methanol and fuel oil.
  • Heavy fuel oil: A thick, cheap and dirty oil left over from refining crude oil. Big ships have used it for decades.
Key details
  • Methanol formula: CH3OH; boils at about 65°C; flash point about 11 to 12°C
  • Energy content: roughly half of heavy fuel oil
  • Green methanol types: bio-methanol (from biomass) and e-methanol (green hydrogen + captured CO2)
  • IMO interim guidelines for methanol as ship fuel: MSC.1/Circ.1621 (November 2020); revision finalised in September 2026
  • Low-flashpoint fuels on ships are covered by the IMO's IGF Code
  • First methanol-enabled container ship: Laura Maersk (named September 2023)
  • NITI Aayog has driven India's Methanol Economy programme since 2016; M15 = petrol with 15% methanol
  • Hydrogen hub ports named by the Ministry of Ports, Shipping and Waterways: Deendayal (Kandla), Paradip, V.O. Chidambaranar (Tuticorin)
In the news

● Tracked since April 30, 2026 · last seen November 06, 2026 · updates as the daily brief publishes

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