SGMF (Society for Gas as a Marine Fuel) has completed a life cycle assessment of three alternative fuels including LNG, ammonia, and methanol with the release of a new study on methanol. These assessments help ship owners gain a more comprehensive view of the environmental impacts of these fuels and make decisions not only based on their combustion outputs but also considering their production methods.
Greenhouse Gas Performance and Benefits of Methanol
The studies conducted revealed that ammonia performs better in terms of reducing greenhouse gases. SGMF's assessment in 2024 showed that depending on the production pathway and engine technology, this fuel can reduce greenhouse gas emissions by up to 61% compared to conventional oil fuels. However, the climatic advantage of ammonia is heavily dependent on the hydrogen production method used to create it. Additionally, controlling nitrogen oxides and NOx and the challenges related to its toxicity are also serious issues in this regard.
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Comparison of LNG, Methanol, and Ammonia
LNG has been introduced as a mature option for the short term, even if it is not the best choice for reducing carbon dioxide. The third LNG assessment published this year showed that LNG can reduce greenhouse gas emissions by between 11% and 25% compared to MGO, depending on engine technology. In contrast, methanol, due to its liquid state at ambient temperatures, has easier operational transfer. This characteristic has helped its rapid growth as one of the alternative fuels in the shipping industry. However, conventional methanol produced from fossil fuels often does not have significant advantages and may perform worse than oil fuels.
SGMF has emphasized the importance of the fuel production pathway in all these studies and has advised ship owners to focus their questions on how fuels are produced. In other words, this organization limits the decision-making for selecting the appropriate fuel to factors beyond just the type of fuel.
Claudia Biomer, SGMF's Director of Communications and Membership, stated in this regard: "It is not SGMF that decides which fuel is best, but what is clear from conducting three life cycle assessments is that the production pathway matters. All fuels have good potential for reducing greenhouse gas emissions, but it depends on their production pathways."
SGMF was established in 2013 initially to promote safety and best practices in the use of gas as a marine fuel. It then expanded its activities to include other low flashpoint fuels such as methanol, ammonia, and hydrogen. Membership in this association includes ship owners, fuel suppliers, ports, classification societies, and technology providers.
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