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Decarbonisation developments and challenges by Standard Club: examining emerging bunker fuels

Standard Club elaborates on methanol and ammonia as emerging marine fuels and discusses the benefits and challenges for each in this article.

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The Standard Club on Thursday (9 January) said it has published an article elaborating the results of its 2022 Alternative Fuels survey to look one step further – to 2030 and 2050 – and examine the emerging fuels that may feature heavily in the shipping industry’s route to decarbonisation:

Examining emerging fuels

The changing backdrop only ramps up the pressure on shipping to continue its course towards decarbonisation. With the timescale to net-zero potentially set to move forward, shipowners and operators would need to act fast and look beyond the short and mid-term goals and look forward to long-term solutions.

Our 2022 Alternative Fuels survey revealed that methanol and ammonia are at the forefront of members’ thinking when it comes to meeting IMO-2050 targets. So, what benefits do each have to offer, and what challenges may shipowners and operators face, should they choose to adopt one of these emerging fuels?

Methanol

Methanol (CH3OH) is one of the commonly shipped chemical commodities. It is produced from carbon, typically from natural gas and coal. However, carbon can also be sourced from a variety of renewable sources, including ‘biomass’, such as food crops, agricultural waste, forestry residue, used cooking oil and other waste products – supporting methanol’s green credentials.

From a regulatory aspect, the IMO interim guidelines for ships using methyl or ethyl alcohol as fuel (MSC.1/Circ.1621) along with the IGF Code for ships using low-flashpoint fuels provides detailed goal-based and prescriptive requirements for application of methanol as marine fuel.

Methanol has several benefits, including:

  • Liquid at ambient temperatures, so no need to heat or cool.
  • Relatively easier to store and handle than cryogenic fuels.
  • Possible to convert existing engines from conventional fuel to methanol.
  • Relatively minor modifications needed to existing storage and bunkering facilities.
  • Already widely traded, well-understood and readily available in some ports for bunkering.
  • Water-soluble and biodegradable, with a lower impact on the environment if a spill happens.
  • Comparatively more energy-dense than hydrogen and ammonia.
  • Clean burning fuel with low levels of sulphur oxide (SOx), nitrous oxide (NOx) and particulate matter.

However, it also presents a number of challenges:  

  • Production is still currently mainly via processing natural gas (grey methanol) or coal (brown methanol), limiting the reduction of CO2 emissions.
  • Only when methanol is produced using renewable sources like biomass, and if the power used to produce it comes from renewable energy, it is considered to be green methanol.
  • Lower energy density than conventional fuel oil.
  • Large fuel volume is almost 2.5 times fuel oil, so requires larger storage tanks and/or more frequent bunkering.
  • Low flash point of well below 60°C is a fire risk, requiring extra fire prevention measures when handled and stored.
  • Toxic if inhaled, ingested or handled.
  • Increased corrosion risks Apart from larger volume of fuel tanks, additional cofferdams will be needed to prevent any potential leak into machinery spaces.

Ammonia

Ammonia (NH3) is typically created by extracting hydrogen from hydrocarbon fuels and combining it with nitrogen extracted from liquified air. Under ambient conditions, it is a colourless gas with a characteristic pungent smell.

Essentially, ammonia is a carrier of hydrogen. However, compared to hydrogen, ammonia storage is more practical due to its energy density and liquefaction temperature.

It is currently produced from natural gas but there is potential for carbon capture to reduce the emission footprint (blue ammonia), or for production from renewable sources (green ammonia).

Benefits of ammonia include: 

  • Since ammonia doesn’t contain any molecular carbon, during its combustion there are no CO2 emissions.
  • ‘Green’ production, using green hydrogen and renewable power for the conversion process, is possible. However, this process may influence its cost competitiveness.
  • Currently produced in substantial volumes for the chemical industry and distributable using existing infrastructure.
  • Commonly transported as cargo, so issues around handling and carriage are already understood.
  • Compared to hydrogen or LNG, ammonia is relatively easier to handle in terms of temperature, as it is stored at around -33oC.
  • Low fire risk due to its relatively narrow flammability range, as compared to other fuels.
  • However, it also poses a variety of challenges, such as:
  • Its toxicity. Being extremely soluble, even at extremely low concentrations, ammonia can be absorbed by body fluids (sweat, tears, saliva) and may cause severe chemical burns. Therefore, using ammonia fuel will require additional safety systems.
  • Apart from toxicity, ammonia also poses enhanced corrosion risk of certain metals such as copper, brass and zinc and various alloys.
  • Although ammonia is commonly carried as a cargo, it is still in the early stages of development as a fuel the regulatory frameworks are still being worked out. The IGF Code currently does not provide prescriptive requirements to cover toxic fuels like ammonia.
  • Ammonia’s lower volumetric efficiency and energy density means much more storage capacity will be required on board. The additional space for fuel may require larger vessel sizes, decreased cargo space or more frequent bunkering.
  • Tanks will need to be designed for temperature and/or pressure control if ammonia is stored in a refrigerated condition, as ammonia continuously evaporates and generates boil-off gas due to heat gain, which increases pressure in tanks if not managed. This storage at low temperatures will require energy.
  • Ammonia burns much more slowly than other fuels and has higher autoignition temperature than conventional fuel oil. This means that sustaining combustion once it gets started is going to be more difficult with ammonia than with other fuels. It will require an initiator/ igniter (combustion promoter) to enhance the burn, and this may cause difficulties in increasing engine output.
  • While carbon-free, ammonia contains nitrogen, and burning it will result in nitrogen oxide (NOx) and nitrous oxide (N2O) emissions. GHG impact of N2O emissions is nearly 300x greater than CO2.

As we highlighted in our previous blogs, members will need to take some key factors into account, regardless of whether they opt for methanol, ammonia, or other potential alternative fuels.

Training personnel onboard and on shore will be critical, as will be continued close collaboration with partners and peers. The shipping industry has traditionally been reluctant to share information, while a lack of clarity and direction has caused some inertia.

To combat this, especially with increasingly stringent deadlines looming on the horizon, members must share innovations, insight, and advice for the benefit of all.

 

Photo credit: Shaah Shahidh on Unsplash
Published: 12 January, 2023

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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