Business

Methanol Institute: EU’s Fit for 55 agenda is an opportunity for progress on shipping emissions

Recommends, amongst others, a steeper incremental increase of the FuelEU Maritime GHG reduction targets beyond 2030, accelerating faster than currently proposed.

Published

5 years ago

October 19, 2021

Admin

The global trade association for the methanol industry Methanol Institute (MI) on Monday (18 October) released a statement regarding the European Union’s Fit for 55 package and the shipping industry’s transition.

The Methanol Institute (MI) has welcomed the European Union’s package of proposals known as Fit for 55 as an opportunity to advance the availability of alternative fuels for shipping. But MI has urged the Commission to consider how best to support the industry on the journey towards the ultimate goal of carbon neutrality by 2050.

In a recently published policy position paper MI states that supply-side mechanisms aimed at spurring the uptake of renewable fuels should be emphasized so as to make low carbon and net carbon neutral fuels more affordable and so drive the switch to renewables. MI also recommends a steeper incremental increase of the FuelEU Maritime GHG reduction targets beyond 2030, accelerating faster than currently proposed, to direct investment towards alternative fuels offering transitional pathways towards carbon neutrality.

MI also supports the extension of the Emissions Trading System to shipping as long as the system is grounded in Lifecycle Assessment (LCA) and the concept of CO2 equivalence, but proposes a five-year phase-in, starting in 2030, to help overcome industry resistance to change and enable experience-building to be incorporated into the policy.

While the EU’s proposal to apply carbon pricing to extra-EU voyages under the ETS is an issue of concern for the shipping industry, the MI doubts that progress of climate action at the IMO will be sufficient to satisfy European lawmakers. Should the opportunity to impose a global fuel levy arise within the phase-in period, EU policymakers should be empowered to abandon the extension of ETS to maritime transport in favour of a more effective instrument with a global scope.

“To successfully facilitate the increased supply and use of alternative marine fuels, it is critical that the EU ETS yields a carbon price that proves sufficient to trigger a systemic shift towards renewable and lower carbon fuels for the maritime sector,” said Matthias Ólafsson, MI’s Manager of Government and Public Affairs, Europe. “The ETS and FuelEU Maritime initiatives must address the most significant challenge to achieving greenhouse gas emission ambitions of the maritime sector, which is the lack of clear vision and corresponding support required to ensure uptake of sustainable marine fuels.”

To safeguard interoperability between other Fit for 55 proposals and regulations formed on the international level, MI believes the well-to-wake/LCA methodology used in FuelEU maritime should also be reflected in the EU ETS and EU taxonomy for measuring emissions from maritime activities.

Other recommendations by the MI include:

The ETS and FuelEU Maritime should expressly state that GHG accounting be based on CO2 equivalence, not solely on CO2 levels and include all major greenhouse gases.
To better account for short-lived climate pollutants in marine transport, the Global Warming Potential should reflect a shorter timeframe of 20 years. For GHGs with a longer lifetime, a GWP of 100 years should be applied.
The ETS system should calculate the GHG performance of fuels based on a well-to-wake approach and apply CO2eq to reflect the complete environmental profile of fuels, in alignment with the provisions of FuelEU Maritime.

Note: To download a copy of the Policy Paper, click here.

Photo credit: Maksym Kaharlytskyi from Unsplash
Published: 19 October, 2021

Winding up

Singapore: Notice of intended dividend issued for Xihe Holdings’ subsidiaries

Creditors will need to produce proofs of debt to liquidators of Da Xin Tankers and Nan Chiau Maritime by 5 August, according to Government Gazette notice.

Published

11 hours ago

July 23, 2026

Admin

Two notices to declare the intended dividend of Xihe Holdings’ subsidiaries to their creditors have been posted on the Government Gazette on Wednesday (22 July).

The subsidiaries are Da Xin Tankers Pte Ltd and Nan Chiau Maritime Pte Ltd.

The following are the details of the notices of intended dividend:

Name of Company : Da Xin Tankers (Pte) Ltd (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 198400895W
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Name of Company : Nan Chiau Maritime (Pte.) Ltd. (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No.: 200814296Z
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Photo credit: steve pb from Pixabay
Published: 23 July, 2026

Biofuel

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

Company says it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply.

Published

11 hours ago

July 23, 2026

Admin

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

South Korean petroleum and refining company S-Oil on Wednesday (22 July) said it has started supplying B30 very low sulphur fuel oil (VLSFO), as the company seeks to support shipping’s decarbonisation efforts and growing demand for lower-carbon bunker fuels.

The company said its B30 VLSFO contains 30% sustainable biofuel blended with conventional VLSFO and can be used without requiring modifications to existing vessels, enabling shipowners to comply more readily with emissions regulations from the International Maritime Organization (IMO) and the European Union (EU).

S-Oil said it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply. The system combines VLSFO produced at its Onsan refinery with biofuel production facilities and storage infrastructure in the Ulsan region, allowing the entire process to be carried out within a single logistics hub.

According to the company, the integrated supply chain reduces transportation requirements during production while improving supply efficiency and reliability.

S-Oil also highlighted Ulsan Port as a strategic location for marine biofuel supply, noting the port has strong demand for bio-bunker fuels, particularly from car carriers, enabling prompt and stable deliveries to key customers.

An S-Oil official stated: “In the bio-marine fuel market, not only product quality but also securing a stable supply of raw materials and an efficient supply system are important competitive advantages.

“Based on our existing bunkering business capabilities and the excellent supply infrastructure in the Onsan area, we plan to supply stable and competitive low-carbon fuel.”

Photo credit: S-Oil
Published: 23 July, 2026

Decarbonisation

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

Both will explore solutions spanning emissions measurement and verification, a digital Book-and-Claim framework, and a joint maritime-land inset token package.

Published

11 hours ago

July 23, 2026

Admin

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

PSA International (PSA) on Monday (20 July) said it has signed a Memorandum of Understanding (MoU) with Yang Ming Marine Transport Corporation (Yang Ming) to jointly accelerate the adoption of low-carbon solutions across the maritime value chain.

Beyond emissions measurement and verification, the collaboration will focus on a digital Book-and-Claim framework and a joint maritime-land based inset token package.

“This synergy provides cargo stakeholders with a transparent and accountable sea-land pathway to achieve their decarbonisation targets,” PSA said on its website.

Yang Ming launched the green transport service, EcoSea+. This initiative integrates Yang Ming’s low-carbon navigation capabilities to empower customers with a flexible and transparent strategy to effectively reduce their Scope 3 transportation emissions. By joining forces with PSA, Yang Ming is able to expand the impact of these sustainability actions beyond the ocean.

Building on its position as a global port operator, PSA advances its Node to Network strategy through integrated port and supply chain capabilities that enable a green network of terminal and landside operations to reduce end-to-end supply chain emissions.

The agreement was officially signed by Mr Ivan Chiang, Chief Logistics Officer & Senior Vice President of Yang Ming, and Mr Eddy Ng, Group Head of Operations, Technology and Sustainability of PSA International.

Mr Ong Kim Pong, PSA International Group CEO, said, “As responsible stewards of tomorrow, PSA is committed to delivering sustainable impact across the global port and supply chain ecosystem.

“Tackling the challenges arising from climate change will require the collective efforts of all players in the maritime supply chain sector. We are excited to partner Yang Ming on the decarbonisation of global supply chains and support the transition towards a more sustainable global economy.”

Photo credit: PSA International
Published: 23 July, 2026