Alternative Fuels

Lloyd’s Register, Samsung Heavy Industries, AET in MOU for zero-emission VLCCs

Three founding members will develop and construct two zero-emission VLCCs and focus on identifying green shipping corridors to facilitate the bunkering of these carriers.

Published

4 years ago

April 11, 2022

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Classification Society Lloyd’s Register, the Korean shipbuilding company Samsung Heavy Industries (SHI) and MISC Berhad (MISC) via its subsidiary, AET, on Monday (4 April) signed a Memorandum of Understanding (MOU) for the development and construction of two very large crude carriers (VLCCS) which can be operated on zero-emission fuel.

The three companies, all founding members of The Castor Initiative, are taking the lead to encourage the use of green ammonia as propulsion fuel, with the first of these dual-fuel tankers entering into service in late 2025 and the second in early 2026.

The Castor Initiative, a multinational coalition committed to make zero-emission in shipping a reality, includes MISC, SHI, Lloyd’s Register, MAN Energy Solutions, the Maritime and Port Authority of Singapore, Yara International ASA and Jurong Port.

Following the inking of this MOU, The Castor Initiative members will focus on identifying green shipping corridors to facilitate the bunkering of these zero-emission VLCCs.

Motivated by the partners’ shared belief that the maritime industry needs leadership and greater collaboration if shipping is to meet the IMO’s GHG ambitions, The Castor Initiative members will also be looking into the establishment of approved training syllabus for seafarers in at least two maritime training institutions. It is crucial to ensure that the latest training and education is provided to the crew to enable the smooth operations of the zero-emission VLCCs.

Lloyd’s Register Group Chief Executive Nick Brown said: “In 2018, Lloyd’s Register made it clear that the IMO’s 2050 emission target would require deep-sea zero-emission vessels to be entering service before 2030, and that zero-emission operation would need to become the default for most deep-sea ships delivered after 2030. Since then, we’ve seen the IPCC report of 2021 issue ‘a code red for humanity, and many call for net-zero emissions by 2050. Today’s announcement fires the starting gun for deep-sea shipping to transition to a fuel which contains no carbon molecules, and Lloyd’s Register is delighted to be supporting this transition.”

SHI President and CEO J. T. Jung said: “We are very delighted to be a part of this inspiring, industry-leading collaboration paving the pathway to zero-emission shipping. The Castor Initiative members have already made impressive progress in making deep-sea zero-carbon vessels in the last few years, and we believe this new development of zero-carbon VLCCs will be accelerating the progress of The Castor Initiative and greatly help bring sooner energy transition in the shipping industry. As a shipbuilder trusted by our valued partners, SHI will strive to contribute to the realisation of a sustainable shipping industry by putting our best efforts into this new collaboration.”

MISC President and Group CEO, Datuk Yee Yang Chien said: “The signing of today’s MOU is the beginning of many more forward moves that will come from The Castor Initiative, to accomplish our GHG ambitions jointly, ahead of 2050. The efforts of our collaboration have brought us to this historic moment where we will soon see the delivery of the world’s first two zero-emission VLCCs, which will be owned and operated by AET.”

“Getting these vessels on water is not the only focus, there is the long game of ensuring the reskilling of talent and the availability of bunkering facilities which are key to the sustainable operations of these two new vessels. The MOU signed today would not be possible if not for the shared commitment, goals, and ambition we have, as The Castor Initiative. My appreciation to all members of The Castor Initiative for being part of this journey and I am confident that we will continue to make bold strides together, to unlock the possibilities that lay ahead.”

Brian Østergaard Sørensen, Vice President, Head of Research and Development, Two-Stroke, MAN Energy Solutions, said: “MAN Energy Solutions is very happy to work with a broad variety of industry partners and to share our particular expertise on this mutual path to decarbonisation. The Castor Initiative is a welcome opportunity to advance the case for green ammonia as a sustainable fuel for maritime shipping as we continue on the path to net-zero.”

Murali Srinivasan, Sr. VP & Commercial Head, Yara Clean Ammonia said: “It is great to see the active collaboration within the Castor Initiative resulting in this MOU of three of our Castor Initiative Members jointly making the step to making ammonia as a fuel a reality. The development and construction of these two zero-emission VLCCs shows that ammonia as a fuel is becoming a reality, also in this ship segment.”

Ms Quah Ley Hoon, Chief Executive of the Maritime Port Authority of Singapore said: “This MOU marks an important milestone in our decarbonisation journey. It is an important part of our efforts to support global efforts towards the future of shipping through a multi-fuel transition guided by the Maritime Singapore Decarbonisation Blueprint 2050. Partnerships are key and the global shipping community must continue to work closely together to achieve our decarbonisation goals.”

Jurong Port Chief Executive Officer, Mr. Ooi Boon Hoe, said: “The signing of this MOU for the construction of two ammonia-fuelled very large crude carriers marks a significant milestone for deep-sea shipping’s adoption of zero- emission vessels. The shipping industry also needs the support of a robust logistics and supply chain solution ensuring the availability and delivery of ammonia as bunker. Jurong Port looks forward to exploring how we can contribute to the success of The Castor Initiative.”

Photo credit: Lloyd’s Register
Published: 11 April, 2022

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

4 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

Bunker Fuel

Antwerp-Bruges biofuel bunker sales drops 36% on year in Q2 2026, LNG down 13.4%

Biofuel recorded 26,833 mt in Q2 2026 with 41,939 mt recorded in the same period the year before while port data showed 76,513 mt of LNG being delivered in Q2 2026, down from 88,328 mt.

Published

4 hours ago

July 23, 2026

Admin

The Port of Antwerp-Bruges recently published bunker fuel sales data for the second quarter (Q2) of 2026.

Total bunker sales at the port was 2.05 million metric tonnes (mt) in Q2 2026, compared to sales of 1.99 million mt (+3%) during the similar period in 2025.

Deliveries of ultra low sulphur fuel oil, very low sulphur fuel oil, high sulphur fuel oil and marine gas oil in Q2 2026 (against on year) recorded respectively 164,987 mt (+43.6% from 114,917 mt), 537,926 mt (+12.8% from 476,746 mt), 659,182 mt (+11.6% from 590,544 mt) and 366,329 (-15.7% from 434,766 mt).

Biofuel recorded 26,833 mt in Q2 2026 with 41,939 mt (-36%) recorded in the same period the year before.

Port data showed 76,513 mt of liquefied natural gas (LNG) being delivered as a marine fuel in Q2 2026, down by 13.4% from 88,328 mt in Q2 2025. Meanwhile, there has been no deliveries of methanol at the port for the year so far.

Photo credit: Port of Antwerp-Bruges
Published: 23 July, 2026

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”.

Published

1 day ago

July 22, 2026

Admin

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