KUWAIT, Aug 19 (KUNA) — Jamal Al-Loughani, Secretary General of the Arab Energy Organization (AEO), formerly known as OAPEC, emphasized the growing significance of low-carbon methanol as a viable tool in reducing greenhouse gas emissions and advancing climate neutrality. He highlighted its potential, particularly in sectors where decarbonization remains challenging, such as heavy industry and transportation.
Speaking to KUNA on Tuesday, Al-Loughani commented on a recently published study examining the role of low-carbon methanol in the global energy transition. He noted that the research arrives at a pivotal moment, as energy systems worldwide shift rapidly toward cleaner alternatives.
According to the report, this fuel can offer Arab nations a strategic pathway to diversify their energy portfolios, meet international climate commitments, and enhance regional collaboration. The production process involves combining green hydrogen—generated via renewable-powered electrolysis—with carbon dioxide captured from industrial or biological sources.
As of mid-2025, investments in low-carbon methanol initiatives have surpassed USD 10 billion globally. Market projections suggest annual production could exceed 20 million tons by 2035, driven by rising demand in shipping, fuel blending, and petrochemical applications.
Al-Loughani pointed out that the maritime sector has already embraced this alternative, with over 200 vessels ordered to run on methanol. While current production costs remain above those of conventional methanol, he noted the gap is shrinking due to technological innovation, policy incentives, and evolving carbon pricing mechanisms.
He added that AEO member countries are strategically positioned to lead in this emerging industry, thanks to their vast natural resources, renewable energy capacity, and advantageous geographic placement within international trade and logistics networks.
The study concludes that low-carbon methanol stands out as a promising solution, balancing environmental performance, technical adaptability, and economic feasibility—making it a key component in building a sustainable, 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