KUWAIT, Aug 19 (KUNA) — Jamal Al-Loughani, Secretary General of the Arab Energy Organization (AEO), formerly known as OAPEC, highlighted the growing significance of low-carbon methanol in advancing climate objectives. Speaking to KUNA on Tuesday after the release of a new study, he emphasized that this fuel offers a viable pathway to cut greenhouse gas emissions, especially in sectors where decarbonization is particularly challenging, such as shipping and heavy manufacturing. nThe research, issued at a pivotal moment in the global shift toward cleaner energy, outlines how low-carbon methanol can support Arab nations in diversifying their energy portfolios while meeting international climate commitments. It details production techniques involving green hydrogen—generated via renewable-powered electrolysis—and carbon dioxide captured from industrial or biological origins. nAccording to the report, more than USD 10 billion has been invested globally in low-carbon methanol initiatives by mid-2025. The market is projected to exceed 20 million tons per year by 2035, driven by rising demand across transportation, fuel blending, and petrochemical applications. nAl-Loughani noted that the maritime sector is already embracing this alternative, with over 200 vessels ordered to run on methanol. Although current production costs remain above those of conventional methanol, he stated that financial incentives, technological innovation, and evolving carbon pricing mechanisms are steadily closing the gap. nHe added that AEO member countries possess strong advantages for developing this industry, including vast renewable energy potential, access to raw materials, and strategic positioning within international trade routes. nThe study concludes that low-carbon methanol stands out as a technically adaptable, environmentally sound, and economically feasible solution, positioning it as a central component in the transition to a sustainable, low-emission global energy system.
— 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