Green methanol: what role can Uruguay play in the decarbonization of maritime transport?
The production of green methanol could generate employment and encourage the development of local industry in Uruguay, creating opportunities for research, engineering, manufacturing and logistics related to this sustainable fuel.
Currently, maritime transport called the "soul of world trade" plays a crucial role in global trade , representing 80% of activity and constituting the backbone of global supply chains.
At the antipodes, the sector is under turbulence due to the drought affecting the Panama Canal [1] and conflicts in the Red Sea between American ships and the Houthis (rebel group fighting against the Yemeni government) causing blockades in the strait that communicates with the Suez Canal [2] .
We are talking about an industry highly dependent on fossil fuels, which is responsible for emitting 1,000 million tons of CO2 annually, implying 3% of global emissions; In addition, IMO studies indicate that it could double between now and 2050. Consequently, the industry is in transition to incorporate sustainable fuels based on methanol, such as Bioethanol and E-Methanol.
Sustainable growth of the methanol market is expected; It is projected to increase from US$ 28,740 Million in 2021 to US$ 39,180 Million in 2028 with a growth rate of 4.5% annually according to Fortune Business insights.
What is green methanol?
Green methanol is divided into two main classifications: Bioethanol and E-methanol. They differ in the green raw materials used in their production. Bioethanol involves the replacement of coal or natural gas sources with biomass or biogas, while E-Methanol is synthesized using hydrogen produced with renewable electricity called green hydrogen and captured carbon dioxide.
Green methanol, in contrast to conventional fuels, demonstrates a significant emissions reduction, estimated between 60% and 95% according to the Methanol Institute. The antithesis is that the main limitation lies in the high costs associated with production, which fall specifically on the distribution sector.
Projections indicate continued growth in the global e-methanol market, estimating that it will go from the current US$122 million to reach US$3 billion over the next decade. Thus, green methanol is positioned as a sustainable fuel for the decarbonization of the maritime sector .
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That's a great achievement and big congrats to the whole team and leadership for this big step forward