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Scrubber firm: ‘Green shipping will be a powerful lure to investors’

Green vessels are high-risk due to maintenance expenses and rising shipping rates, but present great benefit.
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Scrubber technology firm Pacific Green Technologies (PGT) in late August published an article ‘Green Shipping Will Be A Powerful Lure To Investors’ promoting the use of scrubbers by maritime transportation firms as a sound financial investment for green shipping.

The implementation of the IMO 2020 regulation is expected to have a number of significant impacts on the shipping industry—and today’s shippers are turning to alternative green fuel solutions to keep up.

According to recent studies, global bunker fuel costs may rise by $60 billion, annually, after 2020 due to compliance with the IMO’s 0.5 percent fuel bunker sulphur (sulfur) cap.

Fuel oil, high in sulphur content, is a bunker fuel industry mainstay. In 2016 alone, it accounted for about 70 percent of overall bunker fuels. So, how are modern decision makers going to remain efficient in light of industry regulation changes?

One leading solution involves the installation of gas scrubber systems—installations which remove sulphur from bunker exhaust gas to a better than compliant degree.

Today’s greener vessels, vessels able to meet IMO standards, are increasingly in demand. By circumnavigating the hurdles proposed by bunker oil replacement, they’re not only reducing operating costs but becoming attractive investments.

So, how do green vessels look from a competitive advantage angle?

They’re certainly becoming attractive to investors, but is their demand expected to be stable due to the expenses involved in going green?

Let’s take a closer look at how IMO 2020 is expected to drastically increase the demand for these vessels.

Then, we’ll examine green shipping’s impact on investors.

Green Shipping in the Wake of IMO 2020

IMO 2020’s industry disruption will be influenced by a number of factors—a leading factor being the speed with which refiners can provide compliant fuel, as well as the strategies shippers use to meet the challenge.

Industry decision-makers are certainly looking for low-sulphur-emission solutions. Among the many options, however, some may not make the cut. IMO 2020 will raise demand for very-low-sulphur fuel oil (VLSFO), which maintains a 0.5 percent sulphur content, but using this fuel alternative isn’t necessarily sustainable. VLSFO will widen price spreads between HSFO and VLSFO considerably—impacting stakeholders and creating a risky investment environment.

In fact, fueling vessels with increasingly expensive VLSFO may cost the industry dearly—boosting post-2020 fuel costs by an additional $60 billion. Because VLSFO availability will be limited relative to upcoming demand changes, refiners will incur increased expenses by initiating new projects to increase fuel yields.

The Industry Impacts of Greener Vessels

Is green shipping attractive to investors? The outlook for the immediate future is a little uncertain but, as time telescopes out, green shipping looks like a very attractive proposition.

Currently, VLSFO costs about $600 to $700 per metric ton, while traditional bunker fuel costs about $400 to $450 per metric ton. This price difference may change for a number of reasons, and some trading companies have started stockpiling low-sulphur fuel to prepare for upcoming price increases. Meanwhile, scrubbers require a significant investment, though they’re expected to earn that money back in under a year.

Outside of these direct impacts, an indirect impact exists: Shipping availability is going down, and shipping rates are expected to go up. As shipowners rush to outfit their fleets with green solutions, they’ll be off the market. Some ships may indeed travel at lower speeds, too, to burn less fuel. We can also expect to see the scrapping of older ships as they may not have enough useful years remaining to justify scrubber installations.

Obviously, the oil industry will also be fundamentally affected by IMO 2020. Pipeline companies, refineries and chemical companies alike will experience an impact—resulting in refinery investments changing to meet production needs.

The New Fuel Regulation’s Investment Impact

Understandably, the International Maritime Organization’s new regulation causes a lot of confusion.

But confusion provides opportunities for canny investors.

Some are launching funds to benefit from the uncertainty. They expect to benefit from IMO 2020’s emission caps. Breakwave Advisors’ managing partner, John Kartsonas, is a good example here.

Kartsonas created a large exchange-traded fund last year which invests in dry bulk freight derivatives—hoping to benefit from regulation changes.

By and large, similar investors are sidestepping common concerns about IMO 2020’s dent on investment opportunities due to it increasing freight rates.

We can also expect an increase in green ship-related funds. Green vessels are high-risk, due to the expenses involved in shipyard maintenance and rising shipping rates.

Despite initial high investments in tech development, however, lower sulphur vessels are expected to benefit the marine business greatly.

Investors are mostly establishing funds capable of exploiting the attractions of greener vessels.

And long-term loans for green shipbuilding will prove lucrative, giving both individual and institutional investors more freedom to participate in investments.

From all angles, the future of green shipping investments looks like a bright one. From domestic shipbuilding developments to technology innovation in the maritime environmental technology industry, IMO 2020’s impact is one indicative of greener pastures.

Published: 2 September, 2019
 

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Winding up

Singapore: High Court to hear Norvic Shipping Asia winding up application on 31 July

Application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to Government Gazette notice.
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July 22, 2026

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An application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to a Tuesday (21 July) notice on the Government Gazette.

It noted the winding up application is directed to be heard before the Judge sitting in the General Division of the High Court at 10am on 31 July.

Any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the solicitors of the applicant’s, Oon & Bazul LLC, on payment of the regulated charge for the same.

The Applicant’s address is Hiridostraat 5, Gebouw Prismatrium, 1101CW Amsterdam, The Netherlands.

The Applicant’s solicitors are Oon & Bazul LLC of 103 Penang Rd, #04-04/05/06 Singapore 238467. 

Queries on the winding up application may be directed to the following email addresses: [email protected] and [email protected].

 

Photo credit: Manifold Times
Published: 22 July, 2026

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.
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July 22, 2026

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.
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July 22, 2026

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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