The Port of Long Beach has launched an unprecedented $1 million award for the first oceangoing vessel to commercially refuel with methanol at its harbor, aiming to accelerate the shipping industry's shift to cleaner, lower-carbon fuels. This initiative, approved by the Long Beach Harbor Commission, is designed to signal strong market interest in expanding the availability of clean marine fuels.
Port of Long Beach CEO Dr. Noel Hacegaba said, "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 one million more reasons to embrace clean fuels." He added that this demonstrates seriousness about creating a North American market for methanol bunkering and provides an incentive for investment, also noting how rising fuel costs strengthen the case for energy diversification.
Long Beach Harbor Commission President Frank Colonna emphasized, "The Port of Long Beach has been advancing the commercial availability of clean technology and sustainability solutions for decades. This is the most direct and practical lever we can pull to demonstrate the feasibility of bunkering methanol fuel in San Pedro Bay."
Methanol-powered ships significantly reduce pollutants compared to conventional marine fuel, cutting nitrogen oxide emissions by up to 50%, sulfur oxides by 95%, and particulate matter by 90%. While major global shipping companies are investing in dual-fuel methanol vessels that visit Long Beach, methanol fuel is not currently available at the Port.
The $1 million award is intended to offset the higher cost of methanol refueling, estimated at $1.5 million per call compared to $1 million for conventional fuel. An additional $500,000 is provided for costs related to developing operational and safety procedures, working with fuel providers, and local permitting. This challenge is part of a broader strategy to encourage cleaner ships and fuels, inspired by ports like Shanghai and Singapore, and the Port plans to update its Green Ship Incentive Program within the next year.