KUWAIT, Aug 19 (KUNA) — Jamal Al-Loughani, Secretary General of the Arab Energy Organization (AEO), formerly known as OAPEC, underscored the growing significance of low-carbon methanol as a viable pathway toward reducing greenhouse gas emissions and attaining climate neutrality. This is especially relevant in sectors where decarbonization remains challenging, including maritime transport and heavy manufacturing. nDuring remarks to KUNA on Tuesday, following the release of a comprehensive study on low-carbon methanol’s role in the global energy shift, Al-Loughani emphasized that the timing of the report aligns with a period of rapid transformation in worldwide energy systems, marked by a pivot toward cleaner alternatives. nHe highlighted that Arab nations stand to benefit strategically by integrating this fuel into their energy portfolios, enabling them to diversify supply sources, meet international climate commitments, and enhance cross-border collaboration in clean energy. nThe research outlines production techniques combining green hydrogen—generated via renewable-powered electrolysis—with carbon dioxide captured from industrial processes or organic origins. nData from the study indicates that by mid-2025, global investment in low-carbon methanol initiatives surpassed USD 10 billion. The market is projected to exceed 20 million tons annually by 2035, fueled by rising demand across shipping, fuel blending, and chemical manufacturing. nAl-Loughani noted early adoption in the maritime sector, with over 200 vessels ordered globally to run on methanol. Although current production costs remain above those of conventional methanol, he pointed to narrowing gaps due to technological innovation, policy incentives, and evolving carbon pricing mechanisms. nHe added that AEO member states possess strong foundational advantages, including vast renewable energy capacity, rich natural resources, and key geographic positioning within international logistics networks, making them well-suited to lead in this emerging industry. nThe report concludes that low-carbon methanol offers a balanced combination of environmental performance, operational adaptability, and economic feasibility, positioning it as a critical component in the evolution toward a sustainable, low-emission energy landscape.
— news from Kuwait News Agency
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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