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Report: Transition to new bunker fuels presents an economic opportunity for Canada

Oceans North, Arup, VMCC, and C40 published a new report to shed light on challenges when it comes to decarbonising shipping on Canada’s West Coast as well as some of the solutions.
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Report: Transition to new bunker fuels presents an economic opportunity for Canada

A new report from Oceans North, Arup, the Vancouver Maritime Centre for Climate (VMCC), and C40 Cities Climate Leadership Group (C40) published on Monday (18 December) has shed light on the challenges when it comes to decarbonising shipping on Canada’s West Coast—as well as some of the solutions.

The report, New Energy Markets in West Coast Shipping, is the result of a workshop held earlier this fall in Vancouver that brought together stakeholders from across the marine supply chain to discuss how best to advance the industry’s energy transition. They discussed linking clean energy projects with the marine value chain and figuring out how energy export projects can be leveraged to decarbonise ports, shipping and marine transportation. 

The novel approach included not only ports and shipping representatives, but also energy producers, clean tech entrepreneurs and government officials. 

“Despite a universal understanding that the transition to new fuels will require unparalleled cross-value collaboration, there is a disconnect between energy producers and maritime sector offtakers,” Brent Dancey, the Director of Marine Climate Action at Oceans North, said. 

“By getting everyone in a room together, we were really able to dig into what needs to happen next and create new relationships up and down the marine fuel supply chain.”

The shipping industry produces roughly 3% of the world’s emissions, and that number is growing. Ships need to switch to low- and zero-emission bunker fuels in order to fight climate change and reach our emissions targets. 

The transition to new marine fuels presents an economic opportunity for Canada—an emerging producer and exporter of green hydrogen and ammonia—by leveraging these major projects to supply domestic and international ships. But despite announcements of new “green shipping corridors”—routes that link two or more ports with access to clean fuels—the necessary infrastructure to support maritime decarbonization has yet to be created.

One of the report’s key conclusions is that ships and ports can play an important role in helping the broader zero-emission fuel ecosystem develop on the West Coast. Zero-emission bunker fuels are currently expensive to make, and producers contemplating an investment in new infrastructure need to know that the demand is there. Ports and ships are not just a way of transporting that fuel to market but can also help aggregate zero-emission marine fuel demand to justify investments in fuel production infrastructure. 

“The capital cost and scale required for economical fuels production will require debt financing and firm fixed-price offtake of the fuels for the full life of the facility,” Andy Ralph, Americas Hydrogen Lead at Arup, said.

 “To ramp up to match the supply to maritime demand, industry, government, and the financial sectors will need to work together to chart a pathway to first-generation zero-emission fuel projects that are competitive, profitable, and timely.”

The current cost of zero-emission fuels and technologies is also a concern for consumers, and a major issue many participants identified was the importance of government financial support and community partnerships to fund demonstration projects, bring down prices, and help achieve scale quickly. “Just like land-based transportation, marine industries will need help to transition, and cities can be indispensable partners in unlocking critical investments in urban climate infrastructure,” Juvarya Veltkamp, Senior Advisor to C40 Cities’ Green Ports Forum, said. 

“The maritime sector competes with other sectors for priority access to feedstocks for zero-emission fuels, and a joined-up strategy with local communities will help to effectively communicate the unique industry needs to policymakers.”

Veltkamp stressed that allyship with cities on maritime decarbonisation can help to emphasise the local benefits of reducing emissions from global supply chains, while developing pathways for green jobs and a just transition.

Since the Vancouver workshop occurred, Canada announced the launch of the USD 165.4 million Green Shipping Corridor Fund, which will support the development of clean fuels and technologies at major ports as well as the development of zero-emission vessels. Additional policy changes such as tax incentives could help further signal the government’s commitment to marine decarbonization and provide certainty across the supply chain.

In the meantime, open lines of communication are critical to ensure that all the necessary actors are aligned, and the report’s authors are committed to convening more discussions. “The world has agreed to transition away from fossil fuels, and Canadian ports and shipping have an important role to play,” says Dancey. “But in order to make it a reality, we need a coordinated approach.”

Note: The New Energy Markets in West Coast Shipping Report can be downloaded here.

Photo credit: Oceans North
Published: 21 December, 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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July 22, 2026

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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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July 22, 2026

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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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July 21, 2026

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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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