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 as a viable pathway to curb greenhouse gas emissions and support climate neutrality, especially in industries where decarbonization is challenging, such as shipping and heavy manufacturing.
In remarks to KUNA on Tuesday, following the release of a comprehensive study on low-carbon methanol’s potential in the global energy shift, Al-Loughani noted the research arrives during a pivotal phase of transformation in worldwide energy systems, driven by the urgent need for cleaner alternatives.
He explained that this fuel type offers Arab nations a strategic avenue to broaden their energy portfolios, meet international climate commitments, and deepen collaboration across the region.
The report outlines production techniques involving green hydrogen—generated via renewable-powered electrolysis—combined with carbon dioxide captured from industrial processes or organic sources.
Data from the study indicates that by mid-2025, over USD 10 billion has been invested globally in low-carbon methanol initiatives, with projections showing annual output exceeding 20 million metric tons by 2035, fueled by rising demand in transportation, energy supply, and chemical manufacturing.
Al-Loughani pointed out that the maritime sector is already embracing this fuel, with more than 200 vessels ordered to run on methanol. While current production expenses remain above those of conventional methanol, he noted the financial disparity is shrinking due to policy incentives, innovation in technology, and evolving carbon pricing mechanisms.
He added that AEO member countries are strategically positioned to lead in this emerging field, thanks to their vast natural resources, strong renewable energy capacity, and advantageous locations within international logistics networks.
The study concludes that low-carbon methanol stands out as a key component in building a sustainable, low-emission energy future, combining environmental benefits with technical adaptability and economic feasibility.
— 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