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Dubai: Shipowners and peers discuss realities of biofuel adoption at VPS Biofuels Seminar

ADNOC L&S, Gulf Energy Maritime, Cockett Marine Oil, Mideast/Bahri Ship Management and VPS experts present their views on biofuel bunker hurdles at the VPS Biofuels Seminar in Dubai on 16 March.

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VPS Biofuels Seminar Dubai

Challenges of adopting biofuel as part of shipping’s decarbonisation drive were amongst topics discussed by expert panelists at the VPS Biofuels Seminar in Dubai on Thursday (16 March).

The session found local United Arab Emirates-based players already engaging in respective emission reduction trials before IMO 2030 – with many arriving at their own set of conclusions.

ADNOC L&S – Embracing biofuels in the ‘year of sustainability’ 

Eng Khalid Al Shehhi, Marine Projects Manager, ADNOC L&S noted the maritime logistics arm of ADNOC Group already adopting biofuels for certain commercial operations on the back of “very successful” biofuel trials completed earlier in 2020.

He noted relationship with OEMs as key to supporting ADNOC L&S’ plan of using B20 biofuel; however, the company eventually decided to commit to B5 biofuel even though vessels initially passed B20 trials.

“One of the primary challenges in adopting alternative fuels [biofuel] is the high cost when compared to conventional fossil fuels. As a consequence of our biofuel trials, we determined B5 blend as being more suited for our operating model and emission reductions aim,” he said.

Eng Khalid noted 2023 to be the “year of sustainability” for the UAE due to the upcoming 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28) to be held in the region.

“Our efforts at ADNOC L&S are motivated by ADNOC sustainability targets for 2030 and IMO future emissions reduction targets; for this, we are investigating viable decarbonisation alternatives, with biofuels serving as a viable drop-in option.”

Gulf Energy Maritime – Alternative marine fuels ‘a gamble’ for shipowners

Rajeev Gupta, Head of Fleet, Gulf Energy Maritime (GEM) said shipowners such as themselves are facing challenges sourcing for alternative bunker fuels even though the sector has been focusing on decarbonisation.

“It’s not an easy decision selecting the engine for a newbuilding today but I would probably go for a dual fuel LNG engine just because there is some infrastructure for bunkering LNG,” said Rajeev.

“As Eng Khalid mentioned, cost is certainly an issue and it’s not an easy decision for an operator to take that extra cost because the charterers are not going to pay extra for more expensive bunker fuel.” 

He noted methanol to be a marine fuel favouring chemical tankers but showed apprehension to ammonia being used as a bunker fuel due to its potential dangers.

“It’s a multi-faceted problem and there are no quick solutions that are cheap and easily available; so, I would say it’s a gamble,” highlighted Rajeev.

“IMO is implementing the regulation but the governments and port states are still far behind in implementing the infrastructure to be able to provide these fuels. 

“Unfortunately, the owners become the guinea pigs of having to comply with the regulation, install an engine, but then go searching around the world for suitable fuel.”

Cockett Marine Oil – Biofuels a ‘chicken and egg’ situation

Colin Holloway, Global Head-Technical, Cockett Marine Oil meanwhile noted the firm experiencing a lack of mainstream demand for alternative bunker fuels, including biofuels, but believed marine fuel suppliers will gladly provide avails when enquiries increase.

“I think we’ve already got the idea that it’s a chicken and egg situation. To be honest, to date, we don’t see very much enquiries for biofuel in the UAE and because of that, there’s probably not much availability,” shared Holloway.

“There are a few minor suppliers that are supplying biofuel by truck where you can purchase biodiesel [i.e. B5, B15, etc] but in the interim we can say demand for biofuels have not picked up in the main stream bunker business.

“There is availability for biofuel but not on the scale that is probably needed at this time. However, I am sure the trading companies will supply when demand hits and especially when EU regulations bite from 2024 onwards.”

Mideast/Bahri Ship Management – Adopting a ‘wait-and-see’ approach towards biofuels 

Hendrik Atsma, Snr Manager, Mideast/Bahri Ship Management, noted the company has currently applied a wait-and-see approach towards the adoption of biofuels as bunkers for its fleet.

Though certain countries have been implementing subsidies to assist local shipowners in adopting biofuels for their fleets, Atsma felt biofuels do not present a complete solution towards decarbonisation due to potential environmental issues such as deforestation. So, footprint and fingerprint of biofuels sources will be important.

“We do our research for biofuels and are also in talks with engine makers and bunker suppliers,” he said.

“At some point, we even had the idea of starting a trial although unfortunately we decided not to go ahead because of liability issues. We will wait and see what some of the other major players are doing.”

VPS – Biofuel carriage misalignment of flag states, port authorities present hurdle 

Captain Rahul Choudhuri, Managing Director for Asia, Middle East & Africa (AMEA) at VPS, who was moderating the session, called attention to the current misalignment of biofuel policies between flag states and port authorities as a hurdle for its adoption as a marine fuel.

IMO’s Marine Environment Committee in June 2022 approved a new Unified Interpretation (UI) on the application of regulation 18.3 MARPOL Annex VI in relation to biofuels, allowing biofuel blends up to B30 be regarded in the same way as regular oil-based fuels.

“The current MARPOL Annex II allows carriage of up to 24% FAME; however in principle, if you’re above that limit, then as a bunker tanker or bunker barge, you can’t carry it unless you have a chemical tanker notation,” explained Captain Choudhuri.

“Whereas for example, Singapore has implemented a biofuel standard called the WA 2:2022 which allows carriage of up to 50% FAME. 

“That brings the position of flag states into play because at the moment vessels, owners and operators need flag state approval before they carry and burn biofuel. This means though Singapore is fine with its bunker tankers and flagged vessels burning biofuels, the other flags might not be agreeable.

“There’s a need for MARPOL, port authorities and flag states to align respective policies, including the Life Cycle Assessment (LCA) & CII (Carbon Intensity Indicator) on the carriage of biofuels because this difference will be a potential hurdle when the product becomes a mainstream bunker fuel.”

Related: VPS to hosts round table meet on biofuel bunkers and its challenges in Greece in March
Related: Singapore: VPS panel discussion presents a masterclass in shipping’s biofuel bunker adoption issues to the deck
Related: GCMD-led consortium completes trials of sustainable biofuel bunker supply chains
Related: VPS: Shipowners turn to ‘highly reactive’ Cashew Nut Shell Liquid (CNSL) biofuel blends for marine fuel
Related: VPS organises seminar on biofuel bunkers in Singapore
Related: VPS launches APS-BIO offering biofuels protection service against potential damage

 

Photo credit: VPS
Published: 22 March, 2023

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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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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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