South Korea’s EcoMethanol has signed a memorandum of understanding to supply green methanol for shipping, with Wallenius Wilhelmsen Ocean AS and EUKOR Car Carriers named as end users, according to Ship & Bunker.
The agreement, signed at EUKOR’s Seoul head office on August 26, also involves Taebaek City and Hyundai Corporation, Ship & Bunker reported. Under the arrangement, Hyundai Corporation will purchase methanol produced at EcoMethanol’s planned plant in Taebaek and supply it to the two carriers for use in their methanol-fuelled vessels, the company told Ship & Bunker in an emailed statement.
Plant Details and Timeline
Taebaek City is contributing investment along with administrative and policy support for the project, according to the report. The planned facility will produce 15,000 mt per year of green methanol sourced from forestry residues, using a dual fluidized bed gasification process, Ship & Bunker reported.
EcoMethanol has already secured the plant site, obtained an integrated environmental permit, and completed the basic design phase, according to the report. Construction is scheduled to begin in December 2026, with production targeted to start in January 2029. Total investment for the project is expected to reach KRW 120 billion, Ship & Bunker reported.
Filling a Domestic Supply Gap
According to Ship & Bunker, South Korea currently has no domestic green methanol production capacity. As a result, Korean-linked vessels have relied on imported fuel to date. The report cites EUKOR’s Arctic Tern as an example, which loaded approximately 2,800 mt of methanol in Shanghai in July.
The new project is designed to connect the producer, trader, and both carriers within a single supply chain, Ship & Bunker reported. EcoMethanol noted that the remaining hurdle is closing the cost gap between green methanol and fossil fuels, as Korea continues developing support measures for green shipping, according to the report.
Does This Matter to You?
This development may be relevant to those tracking the availability of alternative marine fuels in Northeast Asia. If realized, the Taebaek plant would represent South Korea’s first domestic source of green methanol, potentially reducing reliance on imported supply for vessels calling at Korean ports or operated by Korean-linked carriers.
For now, the project remains in its early stages, with construction not set to begin until December 2026 and production not expected until 2029. The source material notes that closing the cost gap with fossil fuels remains an open challenge, meaning the broader commercial impact on bunker pricing or fuel availability is not yet clear.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
