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Newport Shipping: Tackling the fuel conversion conundrum

Upgrading ships in line with new environmental rules will be considered a dilemma for the industry due to commercial and technical risk factors.
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Newport Shipping, a provider of drydocking services for ship repair works, on Tuesday (20 July) released an article Tackling the fuel conversion conundrum discussing the challenges of decarbonisation within the maritime sector:

The need to upgrade ships in line with new environmental rules represents a billion-dollar dilemma for the industry as it faces a range of commercial and technical risk factors that will determine whether retrofits for alternative fuels will be worth the investment.

It is estimated that investments of as much as $182 billion will be required on ship machinery and onboard storage for ships to run on low-carbon fuels, both for retrofits and newbuilds, between 2030 and 2050 in order to halve greenhouse gas emissions from global shipping, according to a study by consultancy UMAS and the Energy Transitions Commission for the Getting to Zero Coalition.

This is about 13% of estimated cumulative investments over the same period of up to $1.4 trillion, of which the remainder would be required for land-based infrastructure and production facilities for low-carbon fuels.

Doing nothing is not a real option for shipowners, but it would also be foolhardy to throw money at the problem without knowledge of the most optimal alternative fuel that can secure their fleets for the long haul and ensure payback under a green shipping regime.

A multitude of fuel options are now on the industry’s radar screen to replace more pollutive fossil fuels such as heavy fuel oil (HFO), very low-sulphur fuel oil (VLSFO) and marine gas oil (MGO) currently used by much of the global fleet.

Among these are low-carbon liquefied natural gas (LNG), as well as carbon-neutral fuels including ammonia, methanol and hydrogen produced from sustainable sources such as biomass, to give biofuels, and renewable electricity, to give electrofuels.

Price must be right

These alternative fuels are all at different stages of maturity in terms of availability, cost and performance, with carbon-neutral fuels mostly still at a relatively early stage of development.

These fuels also presently lack the regulatory framework, production capacity, acceptable safety protocols, and bunkering infrastructure for widespread adoption across deepsea shipping.

In determining which fuel is most economically viable, shipowners must consider the fuel price and cost of implementing it onboard vessels through retrofits to adapt engine systems and provide onboard storage.

In addition, the fuel must have sufficient energy content, or calorific value, to power a large vessel such as a VLCC. It must also be available and abundant, as well as technically feasible and safe for storage onboard.

Planning for fuel flexibility will be a key consideration in upgrading the fleet to ensure it remains competitive as regulations tighten in future and carbon-neutral fuels become available, given an average vessel lifetime of around 20 years.

Aside from other fossil fuels, LNG already satisfies these criteria given there are abundant natural gas reserves of around 7177 trillion cubic feet – more than 700 times the size of proven oil reserves. There is also an existing bunkering network for this fuel, which is presently available in at least 93 ports, while price-wise LNG can be cheaper than both VLSFO and HFO in certain periods and regions, according to a study by consultancy Ocean Dynamex.

Reduced emissions

LNG has a much lower emissions footprint than other fossil fuels as it emits zero SOx and negligible amounts of particulate matter and NOx, cutting emissions by between 20% and 30%.

There has been concern over methane slip from gas-fuelled engines, whereby unburned methane gas can escape at the exhaust into the atmosphere, but this type of leakage has been drastically reduced with modern high-pressure engines.

Gas is a much cleaner fuel with excellent combustion and no need for fuel heating, offering technical benefits such as no sludge and less wear-and-tear on engine parts, thereby cutting maintenance costs.

Furthermore, LNG has sufficient energy content, or calorific value, to power vessels and is technically feasible to carry onboard ships, while LNG fuel systems can be easily adapted for carbon-neutral drop-in fuels such as bio-LNG and synthetic LNG to make this a sustainable solution also in the longer term.

A DNV case study showed the use of a dual-fuel LNG engine on a Panamax bulk carrier was the most commercially robust solution compared with other alternative fuel technologies due to cost, reduced tank-to-wake emissions and flexibility in regard to future decarbonisation options.

Transition fuel

Consequently, DNV sees a significant part of the global fleet adopting LNG as fuel towards 2040, with carbon-neutral fuels gaining ground around mid-century.

LNG is seen as an important transition fuel towards a net-zero future and such retrofits of existing vessels can be implemented with minimal modifications to the engine system and hull structure, according to Newport Shipping Managing Director, Lianghui Xia.

“LNG is presently the most expedient and practical solution for the industry to meet immediate emissions targets, as the perfect solution may not be available for some years,” he says.

The UK-based ship repair and retrofitting group has now gained a key approval-in-principle from DNV for its unique low-cost LNG retrofit concept for VLCCs and Capesize bulkers as it targets this emerging market.

But Xia believes collective action is also needed to facilitate the shift to LNG through measures such as tax incentives for such conversions, wider bunkering access, and lower production and delivery costs for the fuel from energy companies.

“Apart from agreeing on the optimum fuel option, the speed of implementation of the environmental agenda will be governed by financial metrics.” adds Mr. Xia.

 

Photo credit: Newport Shipping
Published: 23 July, 2021

 

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Incident

MPA: 25 crew rescued after abandoning “MSC HERMES III” east of Vietnam

MRCC Singapore coordinated the rescue after receiving a distress alert at about 8.45am as the vessel was within Singapore’s Maritime Search and Rescue Region.

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September 23, 2026

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The Maritime and Port Authority of Singapore (MPA) on Tuesday (22 September) said all 25 crew members from the Liberia-registered container vessel MSC HERMES III were rescued on 22 September 2026. 

The Maritime Rescue Coordination Centre (MRCC) Singapore coordinated the rescue after receiving a distress alert at about 8.45am (Singapore Time). 

“The vessel was within Singapore’s Maritime Search and Rescue Region (MSRR), about 300km east of Vietnam,” MPA said in a statement. 

MRCC Singapore immediately issued a broadcast requesting vessels in the vicinity to render assistance. Three vessels responded, and MSC RUBY recovered all 25 crew members after they had abandoned MSC HERMES III in a lifeboat. 

“All 25 crew members are safe, with no injuries reported,” MPA said. 

“MRCC Singapore is coordinating with the Vietnamese MRCC on arrangements for the rescued crew members to return safely to shore.”

 

Photo credit: Manifold Times
Published: 23 September, 2026

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Alternative Fuels

GCMD, Equinor to combine expertise on alternative bunker fuels, decarbonisation solutions

Equinor brings extensive experience to partnership as a vessel charterer and marine fuel supplier, including chartering dual-fuel LNG and methanol tankers, testing biofuels and supplying methanol.
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September 23, 2026

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GCMD, Equinor to combine expertise on alternative bunker fuels, decarbonisation solutions

The Global Centre for Maritime Decarbonisation (GCMD) and Equinor on Tuesday (22 September) announced a five-year Impact partnership.

The partnership brings together GCMD’s capabilities in conducting real-world maritime pilots with Equinor’s experience as a charterer, energy provider and developer of low-carbon solutions.

Together, the organisations will leverage their complementary expertise to help address technical and operational gaps in scaling alternative marine fuels and supporting the development and uptake of other maritime decarbonisation solutions.

GCMD’s work on alternative fuels, including biofuels, ammonia and methanol, focuses on two critical aspects of deployment: operational safety and robust monitoring, reporting and verification (MRV). Its pilots and studies are generating operational data to support safe bunkering and handling of these fuels. 

At the same time, its assurance work seeks to strengthen confidence in quantity, quality and GHG emissions abatement.

“Equinor brings extensive experience as a vessel charterer and marine fuel supplier. This includes chartering dual-fuel LNG, LPG and methanol tankers, testing and using biofuels and supplying methanol to the maritime sector,” GCMD said.

Equinor is also piloting the use and supply of ammonia as a marine fuel, contributing to the development of associated safety, regulatory and bunkering arrangements.

Combining these perspectives can help address practical barriers to alternative fuels deployment while strengthening assurance across emerging marine fuel value chains.

Beyond alternative fuels, GCMD is working to accelerate the adoption of solutions that can reduce emissions from the existing fleet, including energy efficiency technologies (EETs) and onboard carbon capture and storage (OCCS).

GCMD’s work on EETs includes quantifying real-world fuel savings from technologies such as wind-assisted propulsion systems and developing financing mechanisms to scale their adoption. In OCCS, Project CAPTURED demonstrated an end-to-end value chain for onboard captured and liquefied CO₂, generating evidence that contributed to the recognition of captured CO2 under the EU ETS and in-principle support at the IMO for recognising carbon mineralisation as permanent storage.

Equinor brings decades of experience in offshore CO₂ storage, including its role in the development and operation of Northern Lights, the world’s first cross-border CO2 transport and storage facility, where liquefied CO₂ is transported by ship to an onshore receiving terminal before it is sent by pipeline for permanent geological storage beneath the North Sea.

Through the partnership, GCMD and Equinor will explore opportunities to combine their respective capabilities and experience to support the deployment and scaling of maritime decarbonisation solutions.

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 23 September, 2026

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Decarbonisation

Wah Kwong NatPower, AREL partner on maritime electrification in Hong Kong

Collaboration will examine opportunities to deploy shore power facilities, vessel charging infrastructure and battery energy storage solutions, alongside the development of electric vessels.
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September 23, 2026

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Wah Kwong NatPower, AREL partner on maritime electrification in Hong Kong

Wah Kwong NatPower (WK NatPower) on Tuesday (22 September) said it has signed a Memorandum of Understanding (MoU) with Aberdeen Restaurant Enterprises Limited (AREL) to explore the electrification of piers, vessels and supporting energy infrastructure in the Aberdeen area of Hong Kong.

Against the backdrop of the HKSAR Government’s latest policy direction to advance green shipping, smart port development and shore power infrastructure, WK NatPower and AREL will explore the development of an integrated marine electrification ecosystem in the Aberdeen and Shum Wan areas. 

The collaboration will examine opportunities to deploy shore power facilities, vessel charging infrastructure and battery energy storage solutions, alongside the development of electric vessels for future transport and tourism services.

The initiative supports Hong Kong to become a leading hub for sustainable maritime innovation while contributing to the revitalisation of one of the city’s most iconic waterfront communities. As an initial phase of the collaboration, the two parties will explore the opportunity for the construction of a series of electric vessels and transport vessels. 

The initiative will also examine the potential deployment of the ApliAber® electric vessel fleet as a new benchmark for sustainable waterfront mobility and hospitality experiences in Hong Kong.

Vincent Ni, General Manager of WK NatPower, said: “This MoU marks an important step in supporting Hong Kong’s marine energy transition. Aberdeen has long been an iconic part of Hong Kong’s maritime heritage, and we are delighted to explore opportunities to develop integrated shore power and vessel electrification solutions that can support a cleaner and more sustainable future for the harbour.”

Wong Tai Yu, Director of AREL, said: “Through this collaboration, we look forward to exploring practical ways to introduce cleaner energy, electric vessels and sustainable waterfront experiences, while supporting the revitalization of Jumbo Kingdom® for future generations.”

 

Photo credit: Wah Kwong NatPower
Published: 23 September, 2026

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