Evolving environmental regulations and the global push toward maritime decarbonization have forced critical shipping corridors to re-evaluate their operational frameworks. This study presents a rigorous environmental and techno-economic evaluation of alternative fuel utilisation within Panama Canal operations, examining the emissions generated during vessel transit and waiting periods. Utilising technical, operational, and environmental data collected from two bulk carriers during Canal transits, operational profiles were constructed to evaluate fuel consumption across both propulsion and auxiliary systems. Emissions from conventional systems utilising marine diesel oil (MDO) were established as a baseline against alternative scenarios modelling methanol and liquefied natural gas (LNG) in dual-fuel engines across a comprehensive life cycle perspective (encompassing both direct operational and indirect Well-to-Wake emissions). To balance environmental performance against financial feasibility, the study also evaluates energy production costs for each fuel pathway. The empirical results demonstrate that LNG reduces life cycle carbon dioxide equivalent (CO₂e) emissions by up to 19.03%, whereas methanol derived from fossil sources increases life cycle CO₂e by up to 17.42%. Operationally, methanol nearly eliminates sulphur oxides and particulate matter, while LNG achieves superior reductions in nitrogen oxides. From an economic standpoint, the energy production cost is calculated at $0.1548 to $0.2001 per kWh for methanol, $0.1157 to $0.1545/kWh for LNG, and $0.1167 to $0.1546/kWh for MDO. These findings highlight the critical techno-economic and environmental trade-offs confronting canal administrators and ship operators, offering a strategic framework to guide incentive structures and green corridor initiatives at major global maritime chokepoints.

Keywords

Panama Canal, maritime decarbonisation, methanol, liquefied natural gas (LNG), dual-fuel engines