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 in advancing climate goals and supporting the energy transformation across the region. Speaking after the release of a new study, he highlighted that this fuel offers a viable pathway to reduce greenhouse gas emissions, especially in sectors where decarbonization is challenging, such as shipping and heavy manufacturing. nThe research outlines how low-carbon methanol can be produced using green hydrogen—generated via electrolysis powered by renewable energy—and carbon dioxide captured from industrial or biological sources. This method not only recycles emissions but also supports the development of circular energy systems. nAs of mid-2025, global investment in low-carbon methanol initiatives has surpassed USD 10 billion. The market is projected to grow to over 20 million tons per year by 2035, driven by rising demand in transportation, fuel blending, and petrochemical applications. nAl-Loughani noted that the maritime industry is already embracing this alternative, with more than 200 vessels ordered to run on methanol. While current production costs remain above those of conventional methanol, ongoing technological improvements, policy incentives, and evolving carbon pricing mechanisms are helping to close the gap. nHe added that Arab nations possess strong advantages in scaling up this sector, including vast renewable energy potential, access to critical infrastructure, and strategic positioning in international trade routes. The study concludes that low-carbon methanol combines environmental benefits with technical adaptability and economic feasibility, positioning it as a foundational element in building a sustainable, low-emission energy future. n— 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