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ETS will Boost Economic value of Methanol in Shipping: Study

Under the EU’s Fit for 55 regulatory package, vessel operators are incentivized to transition to these sustainable fuels through significant penalties levied on continued fossil fuel use.
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A new White Paper prepared for the Methanol Institute by Dr Jeroen Dierickx, an energy and fuel expert at iDefossilise, concludes that the FuelEU Maritime Regulation and EU Emissions Trading System (ETS) will create a level playing field for bio- and e-methanol, making them economically competitive compared to fossil marine fuels.


Under the EU’s Fit for 55 regulatory package, vessel operators are incentivized to transition to these sustainable fuels through significant penalties levied on continued fossil fuel use. For fuel producers, the regulations offer a stable, long-term framework from 2024 to 2050, paving the way for secure investment opportunities in the maritime sector.

The study marks an important milestone for the maritime sector, providing a clear pathway for companies to align with regulatory frameworks while transitioning to sustainable fuel options. It further provides an investment timeline for producers to align production of conventional and renewable methanol with projected demand.

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