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Argus Media: Suppliers looking to drive bio-LNG bunkering growth

Although use of bio-LNG for bunkering is still in its early days, many firms and port authorities across Europe are planning new bio-LNG production plants or are planning to use bio-LNG as a bunker fuel.
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Bio-LNG suppliers are looking to boost the availability of the fuel for bunkering over the coming years, with firms keen to lock in capacity as new environmental standards on maritime emissions kick in.

9 February 2023

The use of bio-LNG for marine bunkering purposes is still in its early days when compared with usage in the heavy-duty road sector, with the uptake of bio-LNG for vessel refuelling likely to be linked to the widespread use of biomethane in other sectors. But many firms and port authorities across Europe are planning new bio-LNG production plants or are planning to use bio-LNG as a bunkering fuel.

Finnish firm Gasum has plans to expand its bio-LNG bunkering presence in the Nordics and northern continental Europe over the next five years, maritime operations vice-president Jacob Granqvist said. The firm is looking to eventually run its Risavika 300,000 t/yr LNG production and bunkering facility in Norway solely on bio-LNG. Gasum first started producing bio-LNG in Finland in 2020, at its biogas plant in Turku. The firm’s bio-LNG expansion is conjunctive to its aim of making 4TWh of biogas available to the market by 2025 through its own production and that of certified European partners.

But bio-LNG’s higher price relative to LNG and other fuels — such as gasoil or diesel — has often been seen as a hurdle to development. This has left pricing methods for bio-LNG bunkering varied, Granqvist said. Some firms are seeking fixed pricing with premiums rather than indexation, as firms “don’t want exposure of 10-years on bio-LNG molecules”, Granqvist said. But the market is keen to “go green” as environmental targets “override price sensitivity”, he added.

And new environmental regulations kicking in over the coming years mean that there is even more of an incentive to use bio-LNG as a bunkering fuel rather than standard LNG, he said. The inclusion of maritime shipping in the EU’s emissions trading system will mean that shipowners have to pay for 40pc of their emissions from 2025, 70pc from 2026 and 100pc from 2027. But the use of LNG as a fuel in fleets will enable operators to compensate for emissions from dirtier, conventional vessels. The “compensation effect may even be higher once you start blending in bio-LNG”, Granqvist says.

“Mixing in bio-LNG makes a lot of sense”, according to Norwegian firm Kanfer Shipping’s managing director, Stig Hagen. Kanfer is in conversations with the Suez Canal authorities on the potential of introducing bio-LNG at its planned LNG bunkering project at the canal.

Ammonia’s future as a bunkering fuel less clear

The maritime sector is also looking into the use of ammonia as a fuel to cut down on emissions, but the costs are higher and availability is lacking.

Supply of ammonia must be increased before it can be widely adopted for use in different sectors, such as as a marine fuel, Columbia University’s Center on Global Energy Policy said last month.

Granqvist is sceptical about using ammonia as a bunkering fuel, calling it a “lame excuse to avoid using LNG”. There is “big risk” in ammonia, given that production and compatibility with vessels is still far off, he adds.

But some firms are planning to skip standard LNG as a bunkering fuel completely, instead moving straight to net-zero fuels. This could boost bio-LNG and ammonia consumption in the sector. Danish shipping firm Maersk said in 2021 that it is very concerned with emissions of the greenhouse gas methane from LNG. The firm will instead leapfrog to other alternative fuels, such as biodiesel, bio-methanol, e-methanol, lignin fuels, and green ammonia.

But many firms remain keen on ammonia. Among them, Japan’s NYK aims to boost its ammonia bunkering presence and modify an LNG-powered tugboat to run on ammonia, while Japanese engineering firm IHI plans to convert LNG import terminals into fuel ammonia terminals to aid the ammonia supply chain. Kanfer reached an initial agreement with a major fertiliser firm last year for an ammonia bunkering vessel.

By Ellie Holbrook

 

Photo credit and source: Argus Media
Published: 10 February, 2023

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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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