Copenhagen, Denmark | October 9, 2025 – In a landmark move that marks another milestone in the maritime industry’s path toward decarbonisation, BIMCO—the world’s largest international shipping association—has officially adopted a Methanol Annex to its Bunker Terms 2018 contract framework. This strategic addition is designed to address the unique challenges and opportunities presented by methanol as an alternative marine fuel, reflecting BIMCO’s commitment to facilitating the industry’s smooth transition toward cleaner, safer, and more sustainable energy solutions.
Supporting the Shift to Alternative Fuels
The Methanol Annex joins BIMCO’s expanding suite of standardized contracts and clauses, created to underpin the growing use of alternative fuels such as LNG and biofuels. Methanol, with its growing traction as a marine fuel due to its favorable environmental profile and compatibility with existing technologies, now has a dedicated contractual framework to support its uptake across the shipping sector.
Nicholas Fell, Chairperson of BIMCO’s Documentary Committee, highlighted the collaborative effort behind the annex “The Methanol Annex has been developed in close consultation with industry stakeholders and technical experts to ensure that it meets the practical and legal requirements of methanol as a marine fuel. It reflects on current industry practices and anticipates future developments in the regulatory area.”
Key Features of the Methanol Annex
The annex introduces several critical updates to the existing bunker terms, designed to reflect methanol’s specific characteristics and regulatory context:
- New Definitions: The annex provides clear, updated terminology tailored to methanol bunkering, capturing nuances vital for contractual clarity.
- Sustainability Certification: It emphasizes the growing importance of verifying the sustainability credentials of methanol fuel, especially under regulations like FuelEU Maritime, allowing buyers and sellers to confirm environmental claims with transparency.
- Emission Specifications: Parties can specify greenhouse gas (GHG) intensity limits, fossil fuel comparators, and methodologies for emissions calculations through the Election Sheet, providing flexibility and ensuring alignment with future regulatory changes.
- Safety Protocols: Recognizing methanol’s toxicity and associated hazards, the annex mandates closed or remote sounding procedures during bunkering to protect crew safety—a critical enhancement that aligns with the highest industry safety standards.
Safety at the Forefront
Methanol’s toxic and flammable nature requires stringent safety measures. The annex carefully integrates sampling and measurement requirements, ensuring that bunkering operations are conducted with maximum caution and precision. This is vital to safeguarding crew members and assets during methanol handling and fueling processes.
Building Momentum Beyond LNG
The Methanol Annex builds on BIMCO’s earlier success with the LNG annex adopted in 2023, reinforcing the association’s role in standardizing marine fuel supply contracts for emerging fuels. Stinne Taiger Ivø, Deputy Secretary General & Director of Contracts at BIMCO, explained the broader vision:
“Building on the momentum of the LNG annex adopted in 2023, the Methanol Annex was a natural next step. We’re continuing to develop and standardise supply terms for new fuels, with an Ammonia Annex to follow when the timing is right. A Biofuels Clause for Time Charter Parties is also underway and expected later this year.”
The Road Ahead: Flexible and Future-Proof Contracts
A standout strength of the Methanol Annex is its adaptability. By enabling contractual parties to specify emission parameters relevant to their agreements, it accommodates varying regulatory environments and operational needs worldwide. This flexibility ensures that the shipping industry can confidently adopt methanol while managing legal and commercial risks effectively.
Why Methanol Matters for Maritime Decarbonisation
Methanol is increasingly recognized as a promising marine fuel due to its:
- Lower carbon intensity compared to traditional fossil fuels.
- Compatibility with existing engine technologies and bunkering infrastructure.
- Liquid state at ambient temperatures, simplifying storage and handling.
- Potential for renewable production, leveraging bio-methanol and e-methanol variants to achieve deeper decarbonisation.
With regulatory frameworks like the International Maritime Organization’s (IMO) strategy and the EU’s FuelEU Maritime initiative driving demand for cleaner fuels, methanol’s role in the energy transition is poised to grow rapidly.
Standardizing Success for Cleaner Seas
BIMCO’s adoption of the Methanol Annex represents a critical step forward in standardizing marine fuel contracts that address emerging energy sources. By delivering clear, practical, and safety-conscious guidelines, BIMCO empowers shipowners, operators, and suppliers to embrace methanol bunkering with confidence.
As the maritime industry accelerates its journey toward net-zero emissions, tools like the Methanol Annex will be indispensable for harmonizing legal frameworks, reducing uncertainties, and fostering a safer, more sustainable future for global shipping.
About BIMCO
BIMCO (Baltic and International Maritime Council) is the world’s largest international shipping association, representing the interests of shipowners, operators, and charterers. Established in 1905, BIMCO is renowned for its global leadership in maritime policy, legal, and operational matters.
With over 2,000 members from more than 120 countries, BIMCO plays a pivotal role in shaping the future of global shipping. The organization provides a wide array of services, including the development of standardized contract forms, operational guidelines, and policy advocacy to ensure the continued growth and sustainability of the shipping industry.
BIMCO is at the forefront of the maritime industry’s efforts to meet the decarbonization challenge, collaborating with international organizations, regulatory bodies, and stakeholders to develop practical solutions that align with global emissions reduction goals. Through initiatives like the Biofuel Clause and other sustainability efforts, BIMCO is helping its members navigate the evolving regulatory landscape and transition to greener, more sustainable maritime operations.
Source BIMCO