Caterpillar Marine Advances Plans for Methanol Dual-Fuel Technology

First Tug with Methanol Field Demonstrator Cat® 3516E Marine Engines Targeted to Deploy in 2026


Houston, Texas — Caterpillar Marine today announced significant advances in the development of its methanol dual-fuel Cat® 3500E marine engines. The announcement comes during the 27th International Tug & Salvage Convention, Exhibition & Awards 2024 in Dubai, United Arab Emirates. Through a Memorandum of Understanding with Damen Shipyards Group, Caterpillar Marine plans to deploy the first set of field demonstrator 3500E marine engines in 2026.

Cat 3500E marine engines will utilize innovative dual-fuel technology that leverages proven diesel fuel systems and supports vessels’ low-pressure – below 10 bar – fuel systems. The methanol dual-fuel Cat 3500E engine targets the same performance and durability as the current 3500E diesel engine while meeting emission standards and delivering 100% power.

“We’re leveraging our deep dual-fuel expertise to help reduce emissions in the maritime industry,” said Brad Johnson, vice president and general manager of Caterpillar Marine. “We look forward to putting the first Cat 3500E demonstration engines in the water with Damen Shipyards in 2026.”


“We’re expanding the 3500E platform’s fuel flexibility to provide customers with a wider array of options to navigate the energy transition,” noted Andres Perez, global tug segment manager at Caterpillar Marine. “Fuel flexibility is key to future-proofing assets. This technology will enable owners to adopt their fuel of choice when the conditions are right without having to build a new asset or face cost-prohibitive retrofits,” said Perez.

“Our dual-fuel Cat 3500E marine engines are optimized to achieve high methanol substitution rates over a wide range of load factors, including the low load ranges that tugs operate in most of the time,” explained Will Watson, global product director at Caterpillar Marine. “For example, a 28-meter tug transiting at 8 knots requiring only 600 kilowatts (kW) of propulsion power would target to achieve a methanol substitution on an energy basis above 70%. This will enable operators to reduce greenhouse gas emissions while experiencing the power and performance they're accustomed to,” said Watson.

The methanol dual-fuel 3516E engine development takes a holistic approach, targeting the highest methanol substitution while meeting regulated emissions. Non-regulated emissions, such as formaldehyde, are part of the focus, and the IMO III solution will abate regulated and non-regulated emissions, targeting the same aftertreatment space claim.

For more information about dual-fuel Cat 3500E marine engines, contact your local Cat® dealer.


About Caterpillar Marine:

Caterpillar Marine, with headquarters in Houston, Texas, offers premium power solutions for a wide range of marine applications. With decades of experience designing engines and aftertreatment solutions, Caterpillar Marine products set the standard for quality, performance, and reliability. Caterpillar is dedicated to being your service provider on the water to provide engine and operational success. With Customer Value Agreements (CVAs), customers can take advantage of an extensive array of service options that can be tailored to their specific needs. Combined with our digital solutions, a CVA can provide valuable insights to engine health and performance. The global sales and service network is ready to support customers in tug, offshore, inland waterways, fishing, governmental, dredge, ferry, and yachting wherever they are.

More information is available at:

About Caterpillar

With 2023 sales and revenues of $67.1 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at or join the conversation on our social media channels at

© 2024 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, LET’S DO THE WORK, their respective logos, "Caterpillar Corporate Yellow", the "Power Edge" and Cat “Modern Hex” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.


Trade Press Inquiries

Danielle Foelber