The Port of Long Beach is offering a $1 million reward to the first ocean-going ship that successfully completes a commercial methanol bunkering operation at the Southern California port. This initiative represents one...
The Port of Long Beach is offering a $1 million reward to the first ocean-going ship that successfully completes a commercial methanol bunkering operation at the Southern California port. This initiative represents one of the most significant incentives by a U.S. port to encourage the maritime sector to transition to lower-carbon fuels.
Approved this week by the Long Beach Harbor Commission, the new “Clean Fuel Bunkering Challenge” aims to kickstart a methanol marine fuel market in North America as shipowners increasingly invest in dual-fuel vessels that can use methanol.
“The shipping industry is looking into adopting methanol marine fuel for several important reasons: they want to cut greenhouse gas emissions and enhance air quality. Today, we’re giving them one million more reasons to adopt clean fuels,” stated Port CEO Dr. Noel Hacegaba.
This challenge is timely as major container shipping companies are ordering methanol-capable ships, even though the U.S. bunkering infrastructure is still limited compared to major hubs in Asia and Europe.
The Port indicated that the prize is meant to help offset the higher costs of methanol bunkering, which they estimate to be around $1.5 million per call, compared to approximately $1 million for traditional marine fuel. This extra funding is also expected to assist with operational planning, permits, coordinating fuel supply, and implementing necessary safety measures for the first commercial-scale operation in San Pedro Bay.
Methanol has become a leading near-term fuel option for the shipping industry because it can drastically lower emissions of sulfur oxides, particulate matter, and nitrogen oxides compared to standard bunker fuel. According to the Port, methanol-powered ships can cut sulfur oxide emissions by up to 95%, particulate matter by 90%, and nitrogen oxides by up to 50%.
Despite these benefits, widespread use faces several challenges, such as fuel availability, higher costs, and ongoing discussions about lifecycle emissions based on methanol production methods.
The Port has noted that several methanol-capable vessels are already docking at Long Beach but currently must leave on conventional fuel since methanol bunkering services are not available in the area yet.
Officials also highlighted rising international momentum, as ports like Shanghai and Singapore have established commercial methanol bunkering capabilities and are involved in Green Shipping Corridor initiatives related to the San Pedro Bay port complex.
This methanol incentive is part of a broader effort by the Port of Long Beach to promote cleaner shipping practices, with plans for additional updates to its Green Ship Incentive Program next year to encourage more low-emission ships.