Alternative Fuels

GMF outlines energy transition to enable early uptake of scalable zero-emission bunker fuels

‘A combination of a pricing mechanism, revenue disbursement and a global fuel standard is required to achieve such a transition in an efficient, just, and equitable way,’ says Global Maritime Forum.

Published

3 years ago

January 23, 2024

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Global Maritime Forum on Thursday (18 January) released its second insight brief following International Maritime Organization’s (IMO) Revised Greenhouse Gas (GHG) Strategy that discusses how various elements from the proposed IMO policy measures can enable an efficient, just and equitable energy transition.

With the upcoming debates at the IMO’s Marine Environment Protection Committee (MEPC) shaping further development of the measures under the IMO’s Revised GHG Strategy, the brief outlines the importance and requirements of a transition that enables an early uptake of scalable zero-emission fuels.

“A combination of a pricing mechanism, revenue disbursement and a global fuel standard is required to achieve such a transition in an efficient, just, and equitable way,” it said.

The brief, titled Unravelling IMO policy measures towards a just and equitable energy transition, zooms in on how different elements of these measures can contribute to the Strategy’s broader objectives of promoting an energy transition as well as enabling a just and equitable transition.

Energy Transition

In terms of the energy transition, the industry faces two basic scenarios for its energy transition: an incremental transition and a two-speed transition. The latter allows for learnings from early adopters to help reduce costs, develop skills and labour force, and incrementally develop the new energy supply chains and infrastructure, as well as reduce the risk of stranded assets. Several elements in the policy measures can support delivering on this objectives:

GHG Pricing Mechanism: If the GHG price and/or any revenue using a subsidy regime is not targeted at SZEF use, it could end up only stimulating transition technologies and driving an incremental energy transition. A GHG pricing mechanism could provide the certainty and strong signal needed to achieve a rapid ramp-up in investments across the sector. Even with a high price and high revenue use, there is no guarantee or mandate for lower GHG intensity operation, which could increase investment uncertainty. Therefore, a price and revenue mechanism should be combined with a technical measure.

Regulating GHG Intensity: Command-and-control measures such as a Global Fuel Standard (GFS) mandate progressive reductions in fuel or energy GHG intensity over time, supporting the energy transition by setting clear requirements and a more predictable emissions reduction pathway. A fuel standard should directly impact the shipowners’ and fuel suppliers’ choices, as the GFI limit first makes operation solely on incumbent fossil fuel non-compliant, until near-zero and zero-emission fuels become the only compliant fuel choice (by around 2040). Nevertheless, it is likely to stimulate an incremental transition and requires a GHG price and revenue disbursement mechanisms to enable a two-speed transition.

Flexibility Mechanisms: flexibility comes with the cost of added complexity (both for administrators and the sector’s value chain), and could risk increased uncertainty for the timing of the business case for investment as, for example, the likely behaviour by shipowners in relation to flexibility will need to be factored into decision making.

Just & Equitable Transition

To enable a just and equitable transition, it is crucial to recognise that such a transition has varying implications for individual nations as policy changes and climate change impacts have different impacts on different states. Several elements on the table can contribute to such a transition:

Flexibility Mechanisms: Flexibility mechanisms in the policy measures could help support a just and equitable transition but also risk undermining the effort. For example, route exemptions risk leaving the exempted regions behind and reduce incentives for investing in zero-emission technologies there. Furthermore, a risk exists that the benefits of exemptions won’t accrue to the exporting countries in the Global South.

Revenue disbursement: Revenue disbursement from the policy measures is required to enable a just and equitable transition. Revenues can, in particular, address the disproportionate negative impacts of measures, support in-sector mitigation in developing countries and unlock global opportunities for fuel production, support technology and knowledge transfer between developing and developed countries, and support vulnerable countries in their adaptation and mitigation efforts.

Conclusion

A two-speed energy transition is the most likely means to deliver on the strategy in a cost-effective, just, and equitable way. Any one measure currently on the table (GFS or GHG pricing) might achieve the strategy’s GHG reduction targets but this depends on their scope, clarity, and stringency. However, to deliver on the objectives of stimulating early adoption of scalable zero-emission fuels, ramping-up use of such fuels in towards 2040, and enabling a just & equitable transition, requires a combination of a GHG pricing mechanisms, a global fuel standard based on well-to-wake, and revenue disbursement mechanisms.

As the IMO progresses through the finalisation of measures, the focus on achieving an energy transition and ensuring a just and equitable path forward remains paramount. The upcoming debates and discussions at MEPC 81 and MEPC 82 will be crucial in shaping the implementation of these measures, and the shipping industry’s commitment to sustainable practices will be closely monitored as it strives to meet the ambitious targets set forth in the IMO’s Revised GHG Strategy.

Note: Read the full insight brief titled ‘Unravelling IMO policy measures towards a just and equitable energy transition’ here.

Photo credit: william william on Unsplash
Published: 23 January, 2024

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Osaka Gas conducts Osaka Bay’s first STS LNG bunkering operation

Acting through Singapore-based marine fuel trading firm Integr8 Fuels, Osaka Gas supplied LNG bunker fuel to an LNG-fuelled PCTC operated by an overseas shipping company calling at the Port of Kobe.

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Osaka Gas conducts Osaka Bay’s first STS LNG bunkering operation

Japanese energy company Osaka Gas on Friday (4 September) said it has successfully completed the first-ever ship-to-ship LNG bunkering operation in Osaka Bay, supplying LNG fuel to an LNG-fuelled PCTC.

The operation was conducted using SETO AZURE, an LNG bunkering vessel owned by Osaka Bay LNG Shipping Co Ltd, an affiliated company of Osaka Gas.

Acting through Integr8 Fuels Pte Ltd, a Singapore-based marine fuel trading company, Osaka Gas supplied LNG fuel to an LNG-fuelled PCTC operated by an overseas shipping company calling at the Port of Kobe.

Ship-to-ship bunkering will help ensure a stable supply of LNG fuel in the Osaka Bay area and support the development of the Port of Kobe as a Carbon Neutral Port.

In addition to ship-to-ship bunkering, Osaka Gas provides LNG fuel through truck-to-ship bunkering and port-to-ship bunkering. With capability covering all three major LNG bunkering methods, Osaka Gas provides flexible and reliable LNG fuel supply services to meet customers’ diverse needs.

The company said LNG bunkering infrastructure in Japan remains insufficient, highlighting the need to establish a stable fuel supply network to support the wider adoption of LNG-fuelled vessels.

Photo credit: Osaka Gas
Published: 8 September, 2026

Alternative Fuels

DNV at SMM: Yanmar Maritime awarded type approval for fuel cell system

Certification marked an important step in moving Yanmar’s maritime hydrogen fuel cell technology from successful domestic deployment toward broader commercial adoption in international markets.

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DNV at SMM: Yanmar Maritime awarded type approval for fuel cell system

Classification society DNV on Monday (7 September) said it awarded Yanmar Power Solutions Co Ltd, a subsidiary of Yanmar Holdings, type approval (TA) for its Maritime Hydrogen Fuel Cell System at the SMM trade fair in Hamburg last week.

DNV said the certification marked an important step in moving Yanmar’s maritime hydrogen fuel cell technology from successful domestic deployment toward broader commercial adoption in international markets.

“This certification represents a significant milestone in the commercialization and global deployment of hydrogen fuel cell technology for marine applications,” the classification society said in a statement.

The approval confirms that the GH-FC series complies with DNV’s industry leading rules and guidelines, enabling shipbuilders, system integrators, and vessel operators to adopt the technology with greater confidence and reduced certification burden for future projects.

Masaru Hirose, President and Representative Director of Yanmar Power Solutions Co Ltd, said: “Achieving DNV Type Approval represents a major milestone in our journey to bring hydrogen-powered solutions to the marine market. Building on our operational experience in Japan, we aim to support customers around the world in their transition to zero-emission operations and realize sustainable maritime transportation.”

Eric Tigelaar, Department Manager of Commercial Marine Department at Yanmar Europe, stated: “This certification strengthens our ability to support customers throughout Europe and beyond who are seeking practical pathways toward decarbonization. The GH-FC series combines easy installation, operational flexibility, modularity and environmental performance, making it an attractive solution for a wide range of vessel applications.”

Olaf Drews, Head of Engines & Pressurized Equipment, DNV Maritime, said: “We are very pleased to continue our cooperation with Yanmar and award them this latest Type Approval Award for their GH-FC series. Every step demonstrates the growing maturity of hydrogen fuel cell technology and continues to build confidence in the market and showcase its readiness for broader commercial applications. DNV is pleased to continue supporting innovative solutions that can help accelerate the transition toward zero-emission shipping.”

Photo credit: DNV
Published: 8 September, 2026

Alternative Fuels

ORLEN and Port of Gdynia to explore LNG and bio-LNG bunkering in Poland

Cooperation will examine market demand, the potential scale of LNG and bioLNG bunkering, required infrastructure, operating conditions and the regulatory framework needed to support future services.

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September 8, 2026

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ORLEN and Port of Gdynia to explore LNG and bio-LNG bunkering in Poland

Polish energy company ORLEN on Friday (4 September) said it has signed an agreement with Port of Gdynia Authority to assess the development of LNG and bioLNG bunkering services for marine vessels, as both organisations explore infrastructure and market solutions that could expand access to alternative fuels along the Polish coast.

The cooperation will examine market demand, the potential scale of LNG and bioLNG bunkering, required infrastructure, operating conditions and the regulatory framework needed to support future services.

One of the main areas under consideration will be waterside bunkering, including ship-to-ship operations, where fuel is transferred directly from a bunker vessel to another ship while in port.

Robert Soszyński, Vice President of the ORLEN Management Board for Operations, said the cooperation with the Port of Gdynia forms part of the Group’s broader fuel portfolio transformation through 2035.

Under ORLEN’s strategy, natural gas, including LNG, is expected to retain an important role as a transitional fuel supporting energy security and transport decarbonisation.

The company is seeking to strengthen capabilities across the full value chain, including fuel sourcing, logistics and final use.

At the same time, ORLEN is developing renewable fuel capabilities, including bioLNG, which the company sees as a potential route for reducing emissions in heavy-duty road transport and shipping.

Soszyński said ORLEN’s ambition is to work with ports not only as a fuel supplier but also as a partner in developing infrastructure and market conditions for alternative marine fuels in Poland and the wider region.

Piotr Gorzeński, CEO of the Port of Gdynia Authority, said the shipping industry’s energy transition is already changing the fuel and technology requirements faced by ports.

“Shipowners are increasingly examining ways to reduce emissions, while ports need to be capable of serving vessels using a wider range of propulsion technologies and fuels,” he said.

The cooperation will include knowledge sharing and an assessment of requirements among shipowners and port users, particularly operators of scheduled ferry, container and ro-ro services.

ORLEN and the Port of Gdynia will also analyse bunkering models used at other European ports.

Among the options under review will be the suitability of ship-to-ship bunkering for larger vessels and the possibility of supplying fuel while ships are alongside the berth.

The partners will also examine whether bunkering could take place in parallel with cargo-handling operations.

Photo credit: ORLEN
Published: 8 September, 2026