What is eMethanol?

26 January 2026

eMethanol is synthetic methanol produced using electricity. The term is used for methanol made by reacting captured carbon dioxide (CO₂) with green hydrogen (H₂). When made using sustainable feedstock and powered by near zero carbon energy, eMethanol is seen as a pathway to decarbonisation – especially in decarbonising shipping.

What is the Difference Between eMethanol and Conventional Methanol?

eMethanol is produced using renewable electricity, green hydrogen, and captured CO₂ whereas conventional methanol is produced from fossil-based synthesis gas derived from natural gas or coal. To clarify:

Synthetic methanol is defined as methanol produced from synthesis gas that may originate from fossil or non-fossil sources.
Renewable methanol is produced entirely from renewable feedstocks such as biomass or captured biogenic carbon dioxide.
e-methanol is a subset of renewable methanol produced using renewable electricity to generate hydrogen via electrolysis combined with captured carbon dioxide.

How eMethanol is Made

eMethanol production is typically made using a power-to-liquid route with four main steps:

Renewable electricity supply
Electricity is provided from renewable generation (solar, wind, geothermal, etc.) or from nuclear power (near zero carbon).
Green hydrogen production
Water electrolysis is used to produce hydrogen and oxygen. It is compliant as a Renewable Fuel of Non-Biological Origin (RFNBO).
CO₂ capture and conditioning
CO₂ is captured from the atmosphere using Direct Air Capture (DAC) or from an industrial point source.
Methanol synthesis (CO₂ hydrogenation)
CO₂ and H₂ are reacted over a catalyst to produce methanol and water, followed by distillation to product grade.

Methanol as a Maritime Fuel

Why eMethanol is being Adopted for Shipping

Methanol is a liquid at ambient temperatures, so it can be stored and handled using systems similar to existing marine fuels with few modifications needed. It can be used in dual-fuel marine engines, which enables ships to operate on methanol with conventional fuels as backup, thus reducing risk during adoption. Ships with dual-fuel methanol engines are already being used in long-distance shipping, and early fuel supply networks are being set up based on agreed deliveries from new methanol production plants.

In addition, methanol combustion produces low sulphur oxide and particulate emissions, supporting compliance with maritime emission regulations.

eMethanol for Carbon Neutral and Net-Zero Shipping

Whether eMethanol can be called “carbon neutral” depends on how emissions are measured and which system boundaries are used. It is often described as part of a closed carbon cycle because it is made using captured CO₂ and renewable hydrogen, but whether this claim is accepted depends on full life cycle calculations, certification schemes, and independent checks. In EU policy, attention is given to total greenhouse gas emissions from production through to use, rather than only the emissions released when the fuel is burned.

EU Regulations for Decarbonising Shipping

1) FuelEU Maritime

FuelEU Maritime was set to drive the uptake of renewable and low-carbon fuels by requiring ships calling at EU/EEA ports to reduce the greenhouse gas intensity of the energy used on board. This design supports drop-in and alternative fuels, including Renewable Fuel of Non-Biological Origin (RFNBO)-derived fuels where criteria are met.

2) EU ETS for maritime

The EU Emissions Trading System was extended to include maritime transport from 1 January 2024, with phased-in surrender obligations in the following years. This places a direct cost on reported emissions for voyages and influences fuel choice, operational efficiency and investments.

3) RED (Renewable Energy Directive) and RFNBO (Renewable Fuel of Non-Biological Origin) rules

For eMethanol made from renewable hydrogen, EU rules on RFNBOs set conditions for when hydrogen and hydrogen-derived fuels can be counted as renewable, including electricity sourcing and greenhouse gas accounting. These rules are important when eMethanol is marketed as renewable under EU frameworks and when used for compliance reporting.

[See: EU Climate Regulations Explained]

Practical implications for shipping operators

Compliance planning is required across two instruments:
FuelEU Maritime drives fuel greenhouse gas intensity performance, while maritime EU ETS prices reported emissions.
Book-and-claim and certification capacity are limiting factors:
RFNBO-style compliance depends on audited evidence for electricity, hydrogen, and CO₂ inputs, so supply contracts are often structured around certification and chain-of-custody.
Early supply is constrained:
Commercial-scale projects have started operation, but volumes remain limited relative to global demand, so long-term offtake agreements are being used to secure fuel for newbuild fleets.

Summary

eMethanol is methanol produced by reacting captured CO₂ with renewable hydrogen. For shipping, it is being adopted because it can be handled as a liquid fuel with established bunkering approaches and because there are dual-fuel engine options. In the EU, uptake is influenced by the FuelEU Maritime requirements, the extension of the EU ETS to maritime transport, and RFNBO rules that define when hydrogen-derived fuels can be counted as renewable.

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