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Shanghai: Adoption challenges of methanol bunker fuel take centre stage at VPS panel session

Chimbusco, GARD, Green Marine Group, the Methanol Institute, VPS, and DNV experts offer respective thoughts on shipping’s transition towards methanol as a marine fuel.

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Shanghai: Adoption challenges of methanol bunker fuel take centre stage at VPS panel session

Issues of using methanol as a marine fuel was the focal point of discussion by panellists at the recent VPS-organised Fuel Quality, New Fuels & Decarbonisation Challenges seminar held in Shanghai, China on 28 March.

Chimbusco – Working on three aspects of methanol as marine fuel

Tian Ming, General Manager, Enterprise Management & Development Division, Chimbusco shared the company has been working on three areas, include availability, bunkering ports, and standards, for the use of methanol as a bunker fuel.

“As far as we know the availability of green methanol is very limited and there will be a big gap between supply and demand. In China, we pay attention to green methanol projects but found they are too far from mass production,” said Mr Tian.

He noted methanol can only be currently supplied as a bunker fuel at less than ten ports in the world while Shanghai port will start supplying green methanol soon.

“Last year at a decarbonisation forum we launched marine fuel quality and delivery standards for methanol. With such standards we hope we can have safe fuel supply [for methanol],” noted Mr Tian.

“This year, we will be focusing on the supply of marine biofuel and green methanol, and consider the design of a more environmentally friendly refuelling barge.”

The Methanol Institute – Market imbalance for forecasted demand and supply

Zhao Kai, Chief Representative China, the Methanol Institute (MI) similarly noted a shortfall in future methanol bunker supply due to a chicken and egg situation between producers and shipowners.

“We currently have about over 260 new vessels in the orderbook and 100 ships due for retrofits to use methanol as a bunker fuel which will generate more than 20 million mt in market demand,” explained Mr Zhao.

He noted MI has not been able to track much development in renewable methanol supply agreements between producers and shipowners.

“The renewable methanol supply side wants prices to be higher, but shipowners want to wait for lower prices. MI is doing a lot of work in the background to help both supply and demand sides establish a working relationship.”

Green Marine Group – Safety an important factor amidst maritime energy transition

Donnie Bagang, Managing Director of Green Marine Group and the first Chief Engineer in the world to run a methanol-fuelled tanker, emphasised the ongoing transition in the shipping industry towards cleaner fuels. He highlighted the significance of crew training and risks associated with new fuels in this changing landscape.

Bagang also gave a practical example that a simple leakage of the same rate/quantity in similar operating conditions could introduce either a minor incident for methanol fuel or life-threatening situation in the case of ammonia fuel.

Recognising the industry is now moving in the right direction formulating regulatory requirements for the new fuels, he emphasised: “We do not need to reinvent the wheel completely. Instead, we should look into our present framework, identify training gaps, and bridge those gaps.”

“All these new fuels have been transported as cargo for a very long time and having them marine fuel does not make them a different chemical.”

VPS – No need to ‘reinvent the wheel’ to use methanol as bunker fuel safely

Captain Rahul Choudhuri, President Strategic Partnerships, VPS shared the firm undertook the very first methanol bunker quantity survey (BQS) in Singapore for Maersk’s first methanol-powered container ship, the Laura Maersk.

“There were lots of precautions taken like fire training, proper sample bottles etc and the process shows there is no problem with using methanol as a bunker fuel while ensuring proper Q&Q controls are in place. The IMPCA standards for the methanol cargo industry are already in place,” said Captain Choudhuri.

“Methanol has been carried as a cargo on product tankers for many years. There is no need to reinvent the wheel and we can learn from experience gained from the cargo trading industry. VPS is ready to help shipowners manage the safe use of methanol as a marine fuel.”

Proper management of traditional fossil-based bunker fuel and its alternative variants such as biofuel will continue to be an important topic for the future, he added.

GARD – New marine fuels introduce different risk profile for vessels

Yang Yang, Senior Lawyer, Defence/Charterers & Traders Claims Asia, GARD spoke about the risks insurers take in order to support shipping’s decarbonisation journey.

“As one of the world’s largest marine insurers, based on data from the tens of thousands of claim we handled each year, the risk profile between different type of vessels are very different,” said Mr Yang.

“We can make forecasts based on historical data. In terms of transition risks, we have a unique advantage due to the wealth of data that emanates from our claims portfolio. This claims data gives us a view of the risks when it comes to the industry’s performance in management of change such that the impact of change is measurable. It is likely to bring in an uptick in claims frequency, and change often comes with a price tag. For a vessel with a new fuel, insurers do not have much claims experience or data to base our assessment on. As such, insurance companies should engage all stakeholders to increase risk awareness. One thing remains important and that is proper crew training to mitigate risk. As claims start being notified, we start building our own experience and then we are able to map out risk profiles based on the fuel used for propulsion.”

DNV – Safety still important on the road towards decarbonisation

James Huang, Senior Vice President, DNV who was also moderator for the event stressed the shipping sector should not neglect safety while on the road towards decarbonisation.

“Shipping is a traditional industry and the maritime sector transports about 90% of the world’s goods. The shipping sector is transforming due to decarbonisation but traditional issues such as safety still exist,” said Mr Huang.

He noted DNV identifying three safety related risks for the shipping sector.

“The first is increased number of accidents. Based on 2022 statistics, 50% of accidents are based on machine failures much like the recent case of a containership hitting a bridge at Baltimore. The second is cybersecurity, and third is new risks posed by consumption of new marine fuels,” stated Mr Huang.

“We need to look at the whole value chain to identify and cope with risks as shipping moves to adopt new types of bunker fuels on a larger scale.”

Related: China introduces country’s first marine methanol bunkering standards 
Related: China: Chimbusco releases methanol bunkering code of practice draft to industry
Related: VPS shares its experience with methanol as a bunker fuel
Related: Baltimore bridge collapse: FuelTrust highlights bunkering activities of Singapore-registered “Dali”

 

Photo credit: VPS
Published: 9 April 2024

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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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