Adopting methanol will reduce emissions by 80% in maritime, says report

A report released by Ricardo in December 2025 discovered that adopting methanol as the primary fuel for voyages between the Port of Tyne in Newcastle and port of IJmuiden in Amsterdam could result in the avoidance of £420 million in future regulatory costs and an 80% reduction in greenhouse gas emissions.

The study assessed the technical and commercial feasibility of introducing a green shipping corridor between Newcastle and Amsterdam, exploring the viability of adopting methanol as an alternative fuel and looking at onshore power supply.

It found that methanol adoption reduced emissions by 70% while onshore power supply reduced it by 10 to 15%.

DFDS, a ferry operator, conducted its own analysis and has plans to order two new methanol-powered vessels for this corridor, with deliveries expected in 2029 and 2030.

Ricardo’s research said that transitioning to a green corridor now would give operators a first mover advantage and they would spare themselves future regulatory costs, citing EU Emission Trading System (ETS) charges and FuelEU Maritime regulation. The International Maritime Organisation (IMO’s) Net Zero Framework, which was due to come into effect in October 2025, has been pushed back by a year.

Although the green shipping corridor introduces higher initial costs, including investing in alternative fuels and infrastructure, Ricardo have highlighted that the penalties incurred from lack of compliance with regulation is expected to increase over time. This would help to make the corridor more economically viable in the longer term.

But without progress being made in cost reduction – to around the £350 to £450 per tonne mark which would narrow the gap between fossil fuels – adoption will be hindered majorly.

Ricardo Maritime Sustainable Transport Consultant, Matt Moss, said: “Green shipping corridors represent a viable alternative to traditional carbon-heavy fuels, in an industry that is considered hard to decarbonise. The Port of Tyne – Port of IJmuiden route is not only a suitable candidate for the world’s first green shipping corridor but will also inform similar projects throughout Europe.”

Stephanie Haszczyn, Senior Policy Manager at Logistics UK said: “This report highlights a persistent issue within the decarbonisation of logistics, which is a lack of supportive infrastructure and difficulty in accessing affordable alternative fuels.

“This is especially prevalent in the shipping industry, which is a highly intensive industry that currently relies on the wide availability of fuels. Around 95% of UK goods are imported by sea today, so shipping will continue to need large amounts of fuel to operate as efficiently as it does today.

“By addressing both availability and cost, operators will feel more enabled and supported to decarbonise their fleet and deliver measurable impact.”