The Port of Long Beach established an unprecedented $1 million award for the first oceangoing vessel to refill at its harbor with methanol on a commercial scale in an effort to jumpstart the industry’s transition to cleaner, lower-carbon fuels like methanol.

Approved Monday by the Long Beach Harbor Commission, the Clean Fuel Bunkering Challenge is expected to send a strong signal to the global market of the interest in expanding the availability of clean marine fuels. Details on the challenge rules will be posted at www.polb.com.

“We know the shipping industry is considering moving toward adopting methanol marine fuel for some great reasons – they want to reduce greenhouse gas emissions and improve air quality. Today, we’re giving them 1 million more reasons to embrace clean fuels,” said Port of Long Beach CEO Dr. Noel Hacegaba. “This is about demonstrating that we’re serious about creating a North American market for methanol bunkering, and giving the industry an incentive to invest. We’re also seeing how rising fuel costs are strengthening the case for energy diversification and greater energy independence.”

“The Port of Long Beach has been advancing the commercial availability of clean technology and sustainability solutions for decades,” said Long Beach Harbor Commission President Frank Colonna. “This is the most direct and practical lever we can pull to demonstrate the feasibility of bunkering methanol fuel in San Pedro Bay.”

When compared to conventional marine fuel, a ship running on methanol emits significantly less pollutants, reducing nitrogen oxide emissions by up to 50%, sulfur oxides by 95% and particulate matter by 90%. Major global shipping companies are heavily investing in dual-fuel methanol vessels, some of which are already visiting Long Beach. However, methanol fuel is not currently available at the Port, necessitating methanol-capable ships to depart using conventional bunker fuel.

With current pricing, refueling a vessel with methanol would cost about $1.5 million per call compared to approximately $1 million for conventional fuel. The Port award is intended to offset the difference, and provide another $500,000 toward additional costs including development of operational and safety procedures and working with fuel providers and distributors, as well as local permitting agencies.

The Clean Fuel Bunkering Challenge is part of a concerted strategy by the Port of Long Beach to encourage cleaner ships and clean marine fuels, with development informed by discussions with shipping partners about their challenges and interests. It was also inspired by the commercial availability of the fuel at the ports of Shanghai and Singapore, two participants in Green Shipping Corridors with the San Pedro Bay ports. Within the next year, the Port intends to update the Green Ship Incentive Program to encourage more routine cleaner ship visits, which could further boost the methanol market. Pending revisions include updated scoring and incentive metrics, in collaboration with other international ports.