KUWAIT, Aug 19 (KUNA) — Jamal Al-Loughani, Secretary General of the Arab Energy Organization (AEO), formerly known as OAPEC, emphasized the strategic value of low-carbon methanol in reducing greenhouse gas emissions and advancing climate neutrality, especially in sectors where decarbonization is particularly challenging, such as shipping and heavy manufacturing.
Speaking to KUNA on Tuesday following the release of a comprehensive study, Al-Loughani noted the report arrives during a pivotal phase of global energy transformation, as nations shift toward cleaner and more sustainable sources.
He explained that low-carbon methanol offers Arab countries a viable pathway to diversify their energy portfolios, meet international climate commitments, and enhance cross-border collaboration in clean energy development.
The study outlines production techniques involving green hydrogen—generated through renewable-powered electrolysis—and carbon dioxide captured from industrial or biological processes.
As of mid-2025, global investment in low-carbon methanol initiatives has surpassed USD 10 billion, with projections indicating the market could exceed 20 million tons per year by 2035, driven by rising demand in transportation, fuel blending, and petrochemical applications.
Al-Loughani highlighted that the maritime sector has already embraced this fuel, with over 200 vessels ordered to run on methanol. While current production costs remain elevated compared to conventional methanol, he noted the disparity is shrinking due to policy incentives, technological innovation, and evolving carbon pricing mechanisms.
He added that AEO member states possess significant advantages in scaling up this industry, including vast renewable energy potential, access to raw materials, and strategic positioning within international trade and logistics networks.
The report concludes that low-carbon methanol stands out as a technically adaptable, environmentally sound, and economically feasible solution, positioning it as a key component in the transition to a resilient, low-emission energy future.
— news from Kuwait News Agency
— News Original —
AEO highlights role of low-carbon methanol in climate goals
KUWAIT, Aug 19 (KUNA) — The Secretary General of the Arab Energy Organization (AEO) — formerly OAPEC — Jamal Al-Loughani, stressed the importance of low-carbon methanol as a sustainable and effective solution to reduce carbon emissions and achieve climate neutrality, particularly in hard-to-abate sectors such as transport and heavy industry. nSpeaking to KUNA on Tuesday, following the release of a new study about low-carbon methanol and its role in the energy transition, Al-Loughani said the study comes at a critical time as global energy systems undergo rapid shifts toward cleaner sources. nHe noted that low-carbon methanol provides a strategic opportunity for Arab countries to diversify their energy mix, meet climate targets, and strengthen regional cooperation. nThe study highlights production methods using green hydrogen from renewable-powered electrolysis and captured CO2 from industrial or biological sources. nAccording to the study, global investment in low-carbon methanol projects has exceeded USD 10 billion as of mid-2025, with the market expected to surpass 20 million tons annually by 2035, driven by growing demand in transport, fuel, and petrochemical sectors. nAl-Loughani pointed out that the shipping industry has already begun adopting methanol as an alternative fuel, with more than 200 methanol-powered vessels on order worldwide, and although production costs remain higher than conventional methanol, he said the gap is narrowing due to government support, technological advancements, and improved carbon pricing. nHe emphasized that member states of the organization are well-positioned to develop this industry, given their abundant natural resources, renewable energy potential, and strategic geographic location within global supply chains. nThe study concluded that low-carbon methanol is a promising strategic option, combining environmental efficiency, technical flexibility, and economic viability, making it a cornerstone in the transition toward a sustainable, low-emission energy economy. (end) r nkm.dss