Fuel supply, tank layout, safety, crew competence and port logistics are all affected.
Range, tank volume, safety zones and integration into existing systems.
Fuel availability, price volatility, training, spare parts and insurability.
Multi-stage approach: pre-screening, feasibility study, infrastructure check, then economic comparison.
A well-founded methanol decision requires systematic assessment of ten fields. First: tank volume and space requirements — methanol has approximately half the volumetric energy density of HFO, requiring larger tanks. For existing vessels, this means loss of cargo capacity or the installation of deck tanks.
Second: safety zones — the IGF Code prescribes specific safety distances around methanol tanks, piping and bunker manifolds. These zones can restrict access to other areas of the vessel and must be considered in the vessel layout. Third: material compatibility — methanol attacks certain seals, coatings and non-ferrous metals. All fuel-wetted components must be checked for compatibility.
Fourth: pilot fuel supply — methanol dual-fuel engines require an ignition source, typically Marine Diesel Oil (MDO). The pilot fuel system must function reliably, as a failure leads to immediate loss of main propulsion power. Fifth: fuel conditioning — methanol contains no usable water but must be brought to the correct temperature and pressure before injection.
Sixth: leak detection — methanol is colourless and nearly odourless, evaporates rapidly and forms flammable mixtures. Multi-layered detection systems (vapour, liquid, temperature) are mandatory. Seventh: fire-fighting systems — alcohol fires require alcohol-resistant foam (AR-AFFF) or water mist, as conventional foam breaks down on methanol.
Eighth: crew competence — additional STCW qualifications for handling low-flashpoint fuels are required. Ninth: insurability — P&I clubs and hull insurers have specific requirements for methanol vessels that must be clarified in advance. Tenth: residual value — how does methanol capability affect the vessel's resale value, and how is this factored into the investment calculation?
The conversion itself — engine, tanks, safety systems — costs between 10 and 30 million USD depending on vessel size and scope. But the total costs of a methanol decision extend well beyond that.
The single largest item is ongoing fuel costs. Green methanol in 2026 costs between 1,200 and 1,800 USD per tonne — compared with approximately 500 to 600 USD for VLSFO. For a vessel consuming 50 tonnes per day, this produces an additional cost delta of 35,000 to 60,000 USD per day in pure methanol operation. In dual-fuel mode with proportional methanol use, the delta decreases but remains considerable.
Additional costs include: increased spare parts expenses (new components, greater variety), training costs (initial and recurring crew qualification), insurance premiums (which can be higher for novel fuel systems) and the opportunity costs of lost cargo space due to larger fuel tanks.
Against these stand potential savings: EU ETS cost reduction (if green methanol is credited under FuelEU), FuelEU compliance surplus (which can be sold to other operators or offset internally) and a potentially higher residual value of the vessel. The economic calculation must consider all these factors over the vessel's entire remaining service life.
A typical OEM quotation for a methanol conversion covers the engine, the immediate engine periphery and possibly the control software. It typically does not cover: tank and piping installation, changes to the vessel layout, safety systems, class approval, crew training and long-term service.
Managers who base an investment decision on an OEM quotation typically overlook 30 to 50 % of the total costs. A realistic decision basis additionally requires: a yard quotation for the complete conversion, a class pre-consultation to clarify approval requirements, a port availability analysis for methanol on the planned route and a total cost of ownership calculation over 10 to 15 years.
Phase 1 — Pre-screening: Does methanol suit the operational profile? Is port availability sufficient? Is the vessel technically suitable? This phase typically takes 4 to 6 weeks and requires no major investment.
Phase 2 — Feasibility: Detailed technical assessment, class pre-consultation, yard quotations and initial economic calculation. Duration: 3 to 6 months. Phase 3 — Infrastructure check: Methanol availability in route ports, bunker contracts, price scenarios. Phase 4 — Decision: Total cost of ownership comparison with alternative scenarios (OCCS, LNG, continuing conventionally), board/owner decision.
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