Singapore Startup CRecTech Aims to Halve Costs of Sustainable Marine Fuel

In a significant development for the maritime industry's transition towards sustainability, Singapore-based startup CRecTech is poised to revolutionize the production of renewable methanol, a vital alternative fuel. Founded in 2022 by Dr. Lim Kang Hui and Dr. Haw Kok Giap, both former researchers at the National University of Singapore (NUS), CRecTech aims to reduce the cost of green methanol production by up to 50% compared to conventional methods. This initiative is crucial as the maritime sector faces increasing pressure to decrease carbon emissions amidst global climate change concerns.

CRecTech's proprietary technology leverages a unique catalyst developed over the past decade by Dr. Haw, who holds a PhD in chemistry. The startup's approach significantly streamlines the process of converting palm oil waste into renewable methanol, thus addressing both sustainability and economic viability. "The problem now is actually the limited supply of green methanol," Dr. Lim stated. "This is why we’re trying to focus on providing an affordable green methanol solution."

Green methanol, produced from non-fossil fuel sources, can reduce carbon dioxide emissions by up to 95% and nitrogen oxide emissions by 80%, while also eliminating sulfur oxides and particulate matter. However, the cost of green methanol remains a barrier, ranging from two to five times more expensive than traditional fossil fuel-based methanol. According to Bloomberg New Energy Finance, low-carbon methanol constituted less than 1% of global methanol production in 2024.

The startup has garnered initial funding through the NUS Graduate Research Innovation Programme and the Startup SG Founder Grant from Enterprise Singapore. In addition, they received $500,000 as part of the Breakthrough Energy Fellows – Southeast Asia programme, supported by notable entities including Temasek and Bill Gates’ climate organization, Breakthrough Energy. As a result, CRecTech has grown to a team of five and is currently in its pre-seed funding stage.

Dr. Lim and Dr. Haw have pivoted their focus from hydrogen production to maritime methanol due to a shift in investor interest. Initially, their catalyst technology aimed to make hydrogen production greener by reducing energy consumption in the steam reforming process. However, venture capitalists preferred to back more innovative approaches. Consequently, CRecTech redirected its efforts towards sustainable maritime methanol, securing second place in the Smart Port Challenge hosted by Pier71, a joint initiative between NUS Enterprise and the Maritime and Port Authority of Singapore.

As the maritime industry evolves, the demand for green methanol is anticipated to rise significantly, driven by recent regulatory changes. The International Maritime Organization is implementing stricter emissions targets, and regions like Europe are penalizing high emissions through schemes such as the Emissions Trading System. The global green methanol market was valued at approximately $2 billion in 2024, projected to surge to $37 billion by 2034, according to Precedence Research, at a compound annual growth rate (CAGR) of 34%.

CRecTech estimates that their innovative catalyst process can reduce the production cost of biomethanol to around $200 per ton, bringing it closer to the $150 per ton cost of conventional methanol production. This is achieved by optimizing the conversion of biogas directly into synthesis gas, eliminating the need for energy-intensive upgrading and conditioning steps.

Looking ahead, CRecTech plans to expand its operations, with a goal of producing 30 tons of methanol annually through a pilot system by the end of 2025, followed by a commercial-scale facility capable of generating between 5,000 to 10,000 tons of methanol per year by 2028, likely situated in Malaysia or Indonesia. Dr. Lim envisions this as a demonstration of their technology at a commercially relevant scale, with potential applications extending beyond maritime fuel to include the production of plastics and sustainable aviation fuel.

CRecTech's endeavors reflect a broader trend in the maritime sector's commitment to sustainability, signaling a pivotal shift towards greener practices amid increasing environmental scrutiny. This is part of a two-part series highlighting maritime startups recognized in the SmartPort Challenge. The next submission deadline for the 2025 challenge is July 14, 2025.