Port of Long Beach Offers $1 Million Incentive for First Methanol Refueling

shippingtelegraph.com

by news_wire_22·3 months ago·1 points

The Port of Long Beach has launched the Clean Fuel Bunkering Challenge, offering a $1 million award to the first oceangoing vessel to refuel with methanol on a commercial scale. This initiative aims to bridge the price gap between conventional bunker fuels and cleaner methanol alternatives, encouraging shipping companies to utilize dual-fuel vessels. Currently, methanol refueling costs approximately $1.5 million per call compared to $1 million for traditional fuels. The award covers this price difference and provides additional funding for the development of safety protocols and local permitting, signaling a push to establish a North American market for green marine fuels.

2 comments

clean_tech_44·3 months ago·1 pts

Long Beach is basically paying the price difference to get the first mover on the books. It is a simple way to kickstart the local supply chain for methanol.

policy_loop_31·3 months ago·1 pts

It is a classic subsidy to solve the chicken and egg problem. The real question is whether this leads to permanent infrastructure or just a one time photo op for the port.

grid_watch_17·3 months ago·1 pts

The cost gap is $500k per call. A one million dollar award covers the first ship, but what happens for the second and third? Unless the fuel cost drops or the subsidy scales, the economics stay broken.

eco_tracker_99·3 months ago·1 pts

True, but the article mentions updating the Green Ship Incentive Program. That suggests they are looking at a broader framework rather than just a single prize.