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Alternative Fuels

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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Alternative Fuels

MPA and MSC ink MoU to support adoption of alternative bunker fuels

MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency.
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MPA and MSC ink MoU to support adoption of alternative bunker fuels

The Maritime and Port Authority of Singapore (MPA) on Wednesday (3 June) said it signed a Memorandum of Understanding (MoU) with MSC Mediterranean Shipping Company to strengthen collaboration in maritime decarbonisation, digitalisation, innovation, and manpower development. 

The MoU was signed on 25 May 2026 by Mr Ang Wee Keong, Chief Executive of MPA, and Mr Soren Toft, Chief Executive Officer of MSC.

The MoU underscores the shared commitment of MPA and MSC to foster a sustainable, digital, and future-ready maritime sector, while enhancing MSC’s operational and business activities in Singapore. This year also marks the 30th anniversary of MSC establishing its Asia Regional Office and local office in Singapore.

Under the MoU, MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency and operational performance.

MPA and MSC will also collaborate on maritime digitalisation initiatives to improve operational efficiency, including streamlining vessel arrivals and port operations. 

On manpower development, MSC will support internship and scholarship opportunities through Singapore Maritime Foundation’s Maritime Outreach Network (MaritimeONE) platform, an industry-led tripartite partnership comprising industry, government and institutes of higher learning that aims to raise awareness of the maritime industry and attract quality talent into the maritime sector.

Mr Ang Wee Keong, Chief Executive of MPA, said: “This partnership reflects the strong collaboration between MPA and MSC in driving sustainability and digitalisation in the maritime sector. By working together on decarbonisation, operational efficiency and talent development, we aim to strengthen Maritime Singapore’s position as a trusted and future-ready global maritime hub.”

Mr Soren Toft, Chief Executive Officer of MSC, said: “Singapore is a strategically important hub for MSC and a key gateway to the broader Asia region. As we mark 30 years in Singapore, this MOU reinforces our long-term commitment to strengthening our presence here. MSC and Singapore are closely aligned on the priorities shaping the future of global shipping, and we look forward to deepening this partnership to drive the continued growth and resilience of the maritime industry.”

 

Photo credit: Maritime and Port Authority of Singapore
Published: 4 June, 2026

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Methanol

Seaspan and Hapag-Lloyd complete first of five methanol vessel retrofit

Following “Seaspan Yangtze”, the remaining vessels planned for retrofit under the methanol retrofit programme are “Seaspan Amazon”, “Seaspan Ganges”, “Seaspan Thames”, and “Seaspan Zambezi”.
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Seaspan and Hapag-Lloyd complete first of five methanol vessel retrofit

Seaspan Corporation (Seaspan) and Hapag-Lloyd on Wednesday (3 June) announced the successful completion of the first of the five vessel conversions under their methanol retrofit programme with the delivery of Seaspan Yangtze.

From the early SAVER (Seaspan Action for Vessel Energy Reduction) programme to today’s CleanBlue initiative, Seaspan has committed over USD 230 USD million across 86 vessels, executing more than 550 efficiency and retrofit projects.

Following Seaspan Yangtze, the remaining vessels planned for retrofit under the programme are Seaspan Amazon, Seaspan Ganges, Seaspan Thames, and Seaspan Zambezi. Each retrofit is expected to reduce well-to-wake CO₂e emissions by approximately 30,000 to 50,000 metric tonnes per vessel annually when operating on low-carbon methanol, while also extending vessel lifespan and enhancing fuel flexibility.

“Decarbonisation is not just about building the fleet of tomorrow, it is also about unlocking the full potential of the fleet we have today. Retrofitting and upgrades on existing fleets play a practical, immediate, and economical role in accelerating shipping’s decarbonization journey,” said Bing Chen, Chairman, President and CEO of Seaspan. 

“Project SAVER CleanBlue highlights Seaspan’s strong customer partnerships, deep technical expertise, and unique platform integrated with JV partners, such as WattSpan Maritime Technology, in executing complex and large-scale retrofit projects.”

“The successful conversion of the Seaspan Yangtze together with the planned retrofit of its four sister vessels is another important step on our ambitious path towards net-zero fleet operations by 2045,” said Silke Lehmköster, Managing Director, Fleet, Hapag-Lloyd. 

“Together with Seaspan, we are demonstrating that retrofitting existing vessels for low-carbon methanol can be a practical way to reduce emissions in shipping.”

 

Photo credit: Seaspan
Published: 4 June, 2026

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Nuclear

South Korean-led nuclear car carrier design secures LR backing

LR is working with HHI, KSOE, Hyundai Glovis, G- Marine Service and KAERI on a joint development project exploring an advanced small modular reactor (SMR) installation on a PCTC.

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South Korean-led nuclear car carrier design secures LR backing

Classification society Lloyd’s Register (LR) on Tuesday (2 June) said it has teamed up with South Korean shipbuilding, marine services and nuclear research organisations to advance the development of a nuclear‑assisted car carrier concept. 

LR is working with Hyundai Heavy Industries, Korea Shipbuilding & Offshore Engineering (KSOE), Hyundai Glovis, G- Marine Service and the Korea Atomic Energy Research Institute (KAERI) on a joint development project (JDP) exploring an advanced small modular reactor (SMR) installation on a pure car and truck carrier (PCTC). 

The study focused on how a Molten Salt Reactor (MSR) could be physically and operationally integrated into a large vehicle carrier. Work examined the internal arrangement and segregation of the reactor system, shielding requirements, and the impact on cargo deck layout and vehicle capacity, alongside stability and trim implications linked to the reactor’s weight and positioning. 

The partners also assessed propulsion system configuration and power delivery, as well as operational flexibility compared with conventionally fuelled PCTCs, where trade routes and port calls can be tightly constrained. 

A key focus of the project has been safety. LR led hazard identification (HAZID) and preliminary risk assessment work, focusing on containment, onboard safety systems and potential operability constraints tied to nuclear technology at sea. 

The partners will mark the project milestone with an Approval in Principle (AiP) granting ceremony on 2 June at the LR stand during Posidonia 2026. 

Sung-Gu Park, President – North East Asia, Lloyd’s Register, said: “While nuclear propulsion is still at an early stage of development, this project shows the importance of building technical understanding now to support future progress. 

“Establishing feasibility at concept stage is a valuable step forward, particularly in areas such as cargo optimisation, vessel stability and integrated safety design.” 

Hong-Ryeul Ryu, CTO and Senior Executive Vice President at HD HHI, said: “With global environmental regulations becoming increasingly stringent and no definitive net-zero fuel yet available, SMR-powered ships can serve as a highly effective alternative, representing a pioneering next-generation maritime technology capable of complying with GHG emission regulations while allowing lifetime operation without refuelling, and HD HHI will remain at the forefront of sustainable maritime technology development.”

 

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

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