The Port of Long Beach has announced a USD 1 million award for the first oceangoing vessel to refuel at its harbor with methanol on a commercial scale, aiming to jumpstart the industry's transition to cleaner, lower-carbon fuels. Approved by the Long Beach Harbor Commission, the Clean Fuel Bunkering Challenge is designed to demonstrate the port's commitment to creating a North American market for methanol bunkering.
"We know the shipping industry is considering moving toward adopting methanol marine fuel for some great reasons – they want to reduce greenhouse gas emissions and improve air quality. Today, we're giving them 1 million more reasons to embrace clean fuels," said Port of Long Beach CEO Dr. Noel Hacegaba. "This is about demonstrating that we're serious about creating a North American market for methanol bunkering, and giving the industry an incentive to invest."
Although dual-fuel methanol-capable vessels already call at the port, methanol bunkering is not yet available. According to the port, a ship running on methanol emits significantly less pollutants compared to conventional marine fuel, reducing nitrogen oxide emissions by up to 50%, sulfur oxides by 95%, and particulate matter by 90%. Major global shipping companies are investing heavily in dual-fuel methanol vessels, but without local methanol fuel availability, these ships must depart using conventional bunker fuel.
With current pricing, refueling a vessel with methanol would cost about USD 1.5 million per call versus approximately USD 1 million for conventional fuel. The port award is intended to offset this difference and provide an additional USD 500,000 toward costs including operational and safety procedures, working with fuel providers and distributors, and local permitting agencies.
"The Port of Long Beach has been advancing the commercial availability of clean technology and sustainability solutions for decades," said Long Beach Harbor Commission President Frank Colonna. "This is the most direct and practical lever we can pull to demonstrate the feasibility of bunkering methanol fuel in San Pedro Bay."
The challenge is part of a broader strategy to encourage cleaner ships and marine fuels, informed by discussions with shipping partners and inspired by the commercial availability of methanol at the ports of Shanghai and Singapore, participants in Green Shipping Corridors with the San Pedro Bay ports. Within the next year, the port plans to update its Green Ship Incentive Program to encourage more routine cleaner ship visits, potentially boosting the methanol market.
Environmental group Pacific Environment welcomed the initiative but urged caution. "Frontline communities in Los Angeles and Long Beach suffer from some of the worst pollution in the nation," said Cristhian Tapia-Delgado, climate campaigner for Southern California, Pacific Environment. "We applaud the Port of Long Beach for approving $1 million to move ocean shipping lines to clean bunkering, but we urge the port to do everything possible to ensure the cleanest, safest and most sustainable alternative fuels are the ones that achieve long-term success at the port."
Davina Hurt, climate policy director for Pacific Environment, added: "We know there is no single, magic fuel solution today, but methanol is emerging as one of the leading fuel alternatives in the maritime industry. As this transition moves forward, shippers and the port must ensure that robust safety precautions must be in place to protect port workers and surrounding communities. Not all methanol pathways are equal, and long-term investments should focus on truly green methanol solutions that deliver the strongest climate and public health benefits."
Source: Read the original report | Published: May 28, 2026