1.   M²ARE: Driving Compliance and Innovation within the European Regulatory Framework

The M²ARE project is a concrete response to the challenge of reducing Greenhouse Gas (GHG) emissions in the shipping industry by driving the production of sustainable fuels from renewable sources. The project’s goal is to produce low-cost, renewable methanol based on biogenic CO₂ and renewable H₂. The technical ambition is to deliver an improved and validated methanol synthesis production process at Technology Readiness Level 7 by 2027, accelerating scalable solutions for the global maritime sector.

The project’s ambitions are driven by several recent EU Directives and Regulations indirectly and directly affect the GHG emission reduction of the shipping industry. Among them are:

• FuelEU Maritime (Regulation EU 2023/1805): Imposes progressive limits on GHG intensity, with a final goal of 80% reduction starting from 2050, and promotes the production of RFNBOs.
• Directive EU 2023/2413 (RED III): Requires Member States to guarantee a 1.2% share of RFNBOs to the maritime transport sector.
• “Fit for 55” package: Aims at reducing direct GHG emissions by at least 55% towards 2030.
• EU Emissions Trading System (EU ETS): Recognizes the Carbon Capture and Utilization (CCU)-based fuel system.
• COM/2024/62: A strategic communication that encourages the adoption of CCU-based fuels.

2.   Why methanol is the strategic choice for maritime decarbonization

Methanol (CH₃OH), a simple alcohol, water soluble and biodegradable, is one of the most promising alternative solutions to the conventional fossil fuels for the maritime industry. Its main advantage lies in its high potential to drastically reduce well-to-wake emissions.

E-methanol, if produced from renewable hydrogen and bio-CO₂ can abate GHG emissions up to 95% compared to conventional fossil fuels [4]. Further, the combustion of methanol as fuel also offers advantages for air quality compared to traditional fossil fuels, as significantly less pollutants are emitted. The combustion of methanol reduces the emission of SO_X by > 99 %, of NO_X by > 60 % and particulate matter by > 95 % [5].

Methanol is liquid at ambient temperature and pressure, it is cost-effective to store and transport and fossil-based methanol is already a traded commodity worldwide, thus the necessary infrastructure is already in place. In addition, large ports, such as the port of Rotterdam, start to increase their methanol bunker capacities. 

Moreover, the adaptation of methanol as a shipping fuel can be significantly accelerated by the use of dual-fuel engines. These can burn both diesel and methanol, are thus very flexible and are already commercially available, in both 2-stroke and 4-stroke configurations. The current cost of renewable methanol remains a major challenge for the adaptation of the alternative fuel. However, long-term projections already show that methanol could become competitive or even cheaper thanks to the cost reductions in renewable hydrogen [6]. Further, production process improvements such as developed and demonstrated in M²ARE aim to utilise unused biogenic off-gases, optimize the Maritime Methanol production and finally lower the final cost of the fuel.

3.   Final considerations, barriers and challenges

The data clearly show that methanol has a great potential to become a  replacement for conventional fossil fuels. Its conventional production is  a mature technology, and it presents easier logistical properties compared to those fuels who need to be physically altered to be stored and transported. Due to the lower energy density of methanol, typically larger tanks are required compared to conventional fuels. However, this is balanced by its advantage on GHG emissions reduction, making it a fundamental pillar to reach carbon neutrality objectives set by UE and IMO by 2050 [7]. Still, some challenges and barriers remain: renewable hydrogen production costs remain high and could potentially slow down the methanol uptake. The renewable carbon sources often need additional conditioning and can be geographically dispersed. Finally, the regulatory landscape regarding methanol remains particularly complex.

[1] FuelEU Maritime (Regulation EU 2023/1805)

[2] Directive EU 2023/2413 (Renewable Energy Directive III)

[3] COM/2024/62

[4] European Maritime Safety Agency (2024), Synthetic Fuels for Shipping, EMSA, Lisbon

[5] European Maritime Safety Agency (2022), Update on potential of biofuels in shipping, EMSA, Lisbon

[6] The 2025 European Maritime Safety Report, ISSN: 2443‑6224 ISBN: 978‑92‑95229‑44‑0 doi: 10.2808/9125442 Catalogue Number: TN‑01‑25‑002‑EN‑N

[7] OGCI Biomass for Marine Fuel 2024

[8] Mobilization of Industrial Capacity Building for Advanced Biofuels European Commission Directorate-General for Research and Innovation Directorate C – Clean Planet Unit C.2 – Clean Energy Transitions