The future of methanol as a marine fuel

The global shift toward cleaner marine fuels has intensified over the last few years, but few companies sit as close to this transition as SRC Group. At the center of this change is Hannes Lilp, whose team has developed one of the most talked-about innovations in the methanol space: the Methanol Superstorage tank concept. In a wide-ranging conversation, Hannes offers a cleareyed view of why methanol is rising, where the industry is headed, and what owners should think about before making the switch.

What is accelerating methanol adoption

When asked what is truly accelerating methanol adoption, Hannes says the movement is being led by a mix of practical and strategic factors. “Containers were the early adopters,” he explains. “The next big pocket is owners who carry methanol as cargo and also want to use it as fuel. We’re now seeing strong interest from ferries, Ro-Ro vessels and even parts of cruise because when you have passengers on board, low toxicity and familiar systems matter. Even superyachts are exploring methanol for the same reasons.” Bulk and offshore players are evaluating projects, he adds, but the most visible momentum today is in containers, chemical and product tankers handling alcohol fuels, and the ferry segment. With several alternative fuels competing for attention, Hannes believes methanol has earned its place in the near term. “LNG is still the lowest-risk choice today because of its mature supply chains,” he says. “Methanol is a clear number two when you look at the orderbook and the number of methanol-ready vessels. Ammonia and hydrogen are promising, but they are early in terms of technology, safety and infrastructure.” He also notes that ethanol is quietly entering the picture, especially because of Brazil’s long experience. “From a technical point of view, methanol and ethanol are very similar. The same combustion technology supports both, with only minor injector adjustments.”

Why alcohol fuels are attracting attention

Engineering and operational simplicity is one of the biggest reasons why alcohol fuels are attracting so much attention. Hannes describes it plainly. “You can store them at ambient temperature. That means you avoid cryogenic or high-pressure systems, which simplifies integration hugely. And existing combustion engines can be adapted with modest changes. That practicality is why we focused so much on solving the tank volume challenge so owners don’t lose range.” That challenge led to one of SRC’s most important innovations: Methanol Super storage. Hannes explains the concept with visible pride. “It’s a tank design based on Sandwich Plate System technology. Traditional low-flashpoint fuels require a wide cofferdam, often 600 to 900 millimeters. We replace that empty space with a thin elastomer steel composite, roughly twenty five millimeters across. The result is eighty percent more usable fuel volume in the same footprint.” The technology itself is not new to shipping. “SPS has been used in maritime structures for more than two decades. We simply applied it to methanol, and now ethanol, and fuel storage.” Safety and lifecycle benefits, he says, are just as important as space savings. “You get A-60 fire equivalence built in. The material is leak-tight, so it doesn’t absorb methanol or ethanol to any meaningful extent. And there is no cofferdam to inspect or maintain, which eliminates operational headaches. The real value for owners is that they don’t sacrifice cargo space. With more usable fuel volume on board, they also get far greater flexibility in routing and bunkering.” Retrofits are another area where SRC sees strong demand. Hannes explains why Super storage works well in these scenarios. “The installation mirrors everyday steel replacement work that yards already do. We’re not asking anyone to learn a new craft. That is why it scales well for retrofits.”

Class approvals and regulatory movement are steadily progressing too. “We have Approval in Principle,” he says, “and we are fully aligned with class on the engineering approach. On the regulatory side, the IMO’s working group on alternative fuels is working toward clear, harmonised methanol rules. Once those come out, owner decision-making becomes potentially much clearer and more projects move from pilot to program.” Owners often describe SRC as exceptionally fast and precise on EPCI and complex conversions, and Hannes sees that as a natural fit for methanol projects. “Methanol conversions are integration projects. They are not only about tanks,” he says. “We cover concept and basic engineering, detailed design, procurement, installation and commissioning.

Innovation extends beyond super storage

SRC’s innovation pipeline extends beyond Super storage. “We are focused on removing practical roadblocks to decarbonisation,” Hannes explains. “You will see more from us on shore-power integration packages, and we recently introduced an offshore fairlead remote-locking system. Other concepts are in development, but we prefer to speak once they are validated with partners and class.” As for owners who are still debating whether to move into methanol now or wait, Hannes offers simple, direct advice. “Treat this as a system decision. It is about the fuel, the tanks, the integration, and the operations. If methanol suits your trade, remove the volume constraint and keep your cargo intact. That is what Super storage is designed for. With clear IMO rules coming and class pathways in place, the business case improves when you can match diesel-like range without sacrificing payload and convert on a timeline that fits your dry dockings.