BIMCO’s Documentary Committee has adopted the BIMCO 2018 Fuel Clause Annex for Methanol. This annex is the latest document in BIMCO’s suite of contracts and clauses, a series designed to support the shipping industry’s transition to alternative fuels and its decarbonization process.
The annex introduces new definitions to reflect the latest developments in the field of fuel bunkering. Simultaneously, it highlights the growing importance of sustainability certifications, which aim to verify the origin and environmental credentials of fuels in accordance with regulations such as the EU’s FuelEU Maritime.
Mr. Nicholas Fell, Chairman of BIMCO’s Documentary Committee, stated: “This methanol annex was tailored through close consultation with industry stakeholders and technical experts to ensure it meets the practical and legal requirements for methanol as a marine fuel. The content reflects current industry practices while also anticipating future developments in the regulatory landscape.”
The annex allows the contracting parties to specify Greenhouse Gas (GHG) intensity limits, fossil fuel reference benchmarks, and emission calculation methods through a selection sheet. This flexible mechanism ensures the annex can adapt to future regulatory changes and allows parties to agree on relevant parameters based on specific contract terms.
Given methanol’s toxicity and associated safety risks, the subcommittee has given careful consideration to the sampling and measurement of methanol.
Furthermore, the annex mandates that methanol fuel bunkering must employ closed or remote measurement procedures to effectively ensure the safety of personnel involved in the bunkering operations.
Ms. Stinne Taiger Ivø, BIMCO Deputy Secretary General and Head of Contracts, said: “Following our adoption of the LNG Annex in 2023, launching the methanol annex was a logical next step. We are continuously developing standardized supply terms for new fuels, and an ammonia annex will be launched when the time is right. Meanwhile, a biofuel clause for time charter parties is also under development and is expected to be released later this year.
