The Port of Long Beach has unveiled a new “Clean Fuel Bunkering Challenge”, promising a $1 million award to the first oceangoing vessel to commercially bunker methanol at the Californian port.
The initiative, approved this week by the Long Beach Harbor Commission, is aimed at helping overcome the current cost gap between methanol and conventional bunker fuels while encouraging development of the operational and regulatory framework needed for wider methanol adoption.
“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.”
According to the port, methanol bunkering currently costs about $1.5 million per vessel call, compared with roughly $1 million for conventional marine fuel. The incentive is intended to offset that premium while also helping cover costs linked to safety procedures, permitting and coordination with fuel suppliers.
“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.”
The announcement comes as major shipowners continue investing heavily in dual-fuel methanol vessels as the industry seeks pathways to reduce greenhouse gas emissions and comply with tightening environmental regulations.
While methanol-capable ships are already calling at Long Beach, the fuel itself is not yet commercially available at the port, forcing vessels to continue operating on conventional bunker fuel.
Long Beach said the challenge was partly inspired by developments at the ports of Shanghai and Singapore, both of which are moving ahead with methanol bunkering capabilities under green shipping corridor initiatives involving the San Pedro Bay ports.
The port also said it plans to further revise its Green Ship Incentive Program over the next year in an effort to encourage more routine cleaner ship calls and further stimulate the emerging methanol fuel market.
