Methanol and Ammonia Now “Ready” as Zero-Emission Shipping Fuels, Industry Report Finds

Both methanol and ammonia have transitioned from theoretical solutions to practical reality as zero-emission shipping fuels, according to a new report released by the Global Maritime Forum’s Getting to Zero Coalition.

The report, titled “From pilots to practice: Methanol and ammonia as shipping fuels,” draws on interviews with approximately 40 influential industry organizations and concludes that both fuels are now considered “ready” – methanol for low-carbon operation and ammonia for piloting.

This represents a significant advancement since the report’s first edition in 2020, with both fuels having now “arrived” as viable shipping fuels.

Jesse Fahnestock, director of decarbonisation at the Global Maritime Forum, highlighted the progress but cautioned about challenges ahead: “We have seen excellent progress in the development of zero-emission fuels and technologies over recent years, with methanol and ammonia having now shifted from potential solutions towards initial scale and proof of concept. However, we are only at the start of our journey and technology readiness is not enough by itself.”

Fahnestock added that scaling zero-emission fuels at the required pace will require action from the International Maritime Organization, national policymakers, and the industry to create appropriate enabling conditions.

The report highlights methanol’s rapid progression, with more than 60 methanol-capable vessels already in operation, 300 more on order, and bunkering available at approximately 20 ports. Early adopters report that methanol is relatively safe and straightforward to integrate into operations.

However, the availability of green methanol remains the key challenge, as it currently constitutes only a small portion of total supply and remains difficult for shipping companies to access.

Ammonia is approaching proof of concept as a marine fuel, with engine tests suggesting it can reduce tank-to-wake emissions by up to 95%. The first ammonia-powered vessels have been successfully piloted, engine testing is nearing completion, and bunkering trials are underway.

This report comes amid a broader industry shift toward alternative fuels. According to recent DNV data, orders for alternative-fuelled vessels reached 19.8 million gross tonnes in the first half of 2025, a 78% increase compared to the same period in 2024.

While LNG remains the dominant alternative fuel with 87 new vessel orders in 2025 so far, methanol has gained significant traction with orders for 40 vessels across multiple segments. Ammonia is showing early adoption signs with three ammonia-fuelled vessels ordered primarily for tanker and general cargo operations.

The report calls for several actions to accelerate development, including targeted policy incentives, robust fuel certification systems, book-and-claim systems to link demand with supply, and investment in bunkering infrastructure.

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