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Alternative Fuels

Report: Ship design and timeline planning key to green fuels conversion of box ships

Finds ‘Preparing Container Vessels for Conversion to Green Fuels’ report published by Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping.

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Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping on Friday (28 September) published a report ‘Preparing Container Vessels for Conversion to Green Fuels’ provides a technical, environmental, and techno-economic analysis of the impacts of preparing container ships for conversion to green fuels (i.e. methanol, ammonia).

The study found that although preparing for the transition to alternative fuels requires additional upfront investment, preparation can pay off in the long term with intelligent ship design and careful planning of conversion timelines. The conclusion of the study is as follows:

Building dual fuel and conversion-ready new builds typically increases newbuild CapEx by 1-16% of the cost for a standard fuel oil newbuild, depending on the planned alternative fuel, desired range, and preparation level. Total CapEx for newbuilding and conversions range from 1033% of the cost of a standard fuel oil newbuild (see Table 15).

post 54506 Table 15

The increased tank volumes required for methanol and ammonia mean that costs associated with lost cargo have a big impact on the total lifetime costs. In the twin island vessel design used here, lost cargo space can be reduced by placing tanks under the accommodation, but this must be done during the newbuild phase, which increases newbuild costs and the risks associated with committing to a particular future fuel.  When tank preparation is not possible and additional alternative fuel tanks must be added in cargo areas later, this has a large impact on costs from cargo losses.

We have analyzed the total costs of newbuilding, conversion and cargo losses for vessels with different preparation levels for each fuel and provided recommendations for newbuild readiness levels, depending on the desired future fuel, conversion timelines, and range (see Figure 15,16). The costs of conversion mean that for short conversion timelines (3-8 years), dual fuel vessels make economic sense.  In most cases where conversion is expected in a timeline of 8-10 years, and full range for the alternative fuel is required, some degree of preparation reduces the total costs.

post 54506 Figure 15
post 54506 Figure 16

Converting unprepared vessels only makes economic sense on longer timelines or where reduced range options reduce cargo loses.  However, the different preparation levels (1-3) we analyzed only had a small impact on newbuild and total costs and very little impact on the total lifetime cost. However, in general the earlier you expect to convert, the more you should prepare. The desired range after conversion, on the other hand, has a much larger influence on conversion CapEx, and therefore the total lifetime cost. Reduced range vessels may offer cost effective options for conversion, where feasible.

When converting from LNG to ammonia, some of the required installations for ammonia are already installed, and as a result the conversion costs are lower than converting from fuel oil. When compared with an ammonia-fuel oil dual fuel newbuild, the total CapEx add-on including LNG option and the conversion cost, is around 30% of a fuel oil newbuild price. Our study shows that the additional cost for the LNG option is recovered over the period before conversion to ammonia because of the assumed lower cost of LNG as fuel, however the fuel price of LNG compared with fuel oil has a big impact on this calculation. If an LNG vessel’s fuel tank is not prepared at newbuild phase, then conversion to ammonia is not feasible for this type of vessel.

Our emissions analyses showed that CO2 emissions from the conversion is minimal, at around 0.3 of the lifetime emissions of a fuel oil vessel.  If the vessel is replaced with a newbuild, instead of converted, the emissions related to building a new vessel, is equal to around 1.5 years emissions from operating on fuel oil or 1.7 years of operation on LNG. This shows that conversion is also a valid option from an emission reduction perspective.

Note: The complete report ‘Preparing Container Vessels for Conversion to Green Fuels’ can be obtained from the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping through the link here.

Photo credit: Venti Views on Unsplash
Published: 3 October, 2022

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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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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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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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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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