Algoma has reduced GHG emission intensity of their domestic dry bulk fleet by more than 30% since 2008.  Much of this reduction is due to fleet renewal, with performance monitoring also playing a role. Alternative fuels offer the next most notable GHG reduction opportunity due to lower carbon intensity over their lifecycle.  The two most promising future fuels are biofuel in the near term, and methanol in the longer term. This presentation will describe the results of two projects supported by Transport Canada which explore the future viability of both options. Algoma Central Corporation has trialed biofuel blends at up to 99% biofuel levels with successful results. However, to date the trials have been limited to one biofuel type and a subset of engine technologies. In this work, Algoma explores which of the many fuel varieties are likely to be true “drop-in” options and which will may require supplementary measures. Biofuels can be generated from a wide range of feedstocks using an equally wide variety of processing and refining technologies. The future availability and cost of any biofuel will depend on these factors, and on incentives and constraints provided by governments. The work has considered current policies and trends in Canada, the US, the EU and internationally. Canada’s strong agricultural, forestry and biochemical industries offer a firm foundation for the development of a range of biofuels.  However, technological evolution is ahead of regulations for the marine sector in particular. There are several regulatory barriers to the use of biofuels in Canada, including uncertainties in how to account for their net carbon intensity and other emissions. The project has identified issues and potential mitigation measures that would assist suppliers and users of biofuels. Beyond biofuel, Algoma explored the impacts of using methanol as a fuel on their existing design for developing their next generation of new build vessels with Vard. The most recently built Algoma Bear was used as a baseline. The study explored the optimal physical layout of the vessel to maximize operability and minimize the impact on the vessel’s cargo carrying capacity.  It also explored the economic and emissions impact of switching to various sources of methanol; from currently available grey methanol to green and bio-methanol sources.  The economic aspects include the additional equipment costs, the impacts on ship configuration, and the costs of the fuel itself.  To maximize the immediate relevance of the study, only commercially available equipment was considered.  Three different configurations of power generation were explored.  The first uses a slow speed main engine and auxiliary generators arranged for dual fuel operation.  The second is similar except it includes the use of a PTO to reduce the generator load and increase the main engine load.  The third option used dual fuel generators to power both propulsion and house loads.  The results of the work present the most attractive concept level solution and describe other challenges and solutions.