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DNV Decarbonization Insight Series August 2026 - What maritime professionals should know about AI Training

Biofuel

Argus Media: Netherlands publishes RED III biofuels draft

Draft introduces a GHG emission reduction mandate for land, inland shipping and maritime shipping, but excludes aviation; RED III mandate will take effect in 2026.

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The Dutch government’s updated draft legislation to transpose the EU’s revised Renewable Energy Directive (RED III) notably proposes abolishing double-counting renewable energy contributions from Annex IX feedstocks.

24 June 2025

The draft introduces a greenhouse gas (GHG) emission reduction mandate for land, inland shipping and maritime shipping, but excludes aviation — which was included in a previous draft. The RED III mandate will take effect in 2026.

Obligated parties have to fulfil the mandate by surrendering a sufficient amount of so-called emission reduction units (EREs) in each sector. The mandate’s flexible credit allowance allows EREs generated in the land sector to be used to partly meet emission reduction obligations in inland and maritime shipping (see table), but EREs from inland and maritime shipping cannot be used by land sector suppliers to fulfil their compliance requirements.

Fuel suppliers with overall consumption of more than 500,000 l/yr will need to incorporate a 14.4pc share of renewable fuels in their annual deliveries in 2026. This increases linearly, to reach 27.1pc in 2030.

The amount of crop-based biofuels in the land sector will be limited to 1.4pc of the overall energy content of total consumption until 2030, and will not be accepted towards targets in maritime and inland shipping and aviation.

The amount of Annex IX Part B biofuels — such as used cooking oil (UCO) and animal fats categories 1 and 2 — that can be counted towards the mandate will be limited to 4.29pc in the land sector and 11.07pc in inland shipping. Obligated parties will be unable to claim EREs from Annex IX Part B fuels used in maritime shipping.

The draft also introduces a minimum share of emission reductions that have to be achieved by Annex IX Part A and renewable fuels of non-biological origin (RFNBO), for all sectors.

RED III mandates that 5.5pc of all fuels supplied must be advanced biofuels, including at least 1pc RFNBOs by 2030. The Netherlands’ draft decouples these targets, to reduce investment uncertainty (see table).

Refineries that use renewable hydrogen in their production process can claim refinery reduction units — or RAREs — which can be used by a supplier to meet an RFNBO sub-target in various sectors.

Correction factor delay

The ministry will delay its plans to apply a “correction factor” of 0.4 to its “refinery route” stimulus for hydrogen demand, in order to ensure the measure does not undermine direct use of hydrogen in transport.

The correction factor means the value of emissions reductions credits generated through the use of renewable hydrogen for transport fuel production would be limited to a certain percentage of those generated through direct use of renewable hydrogen or derivatives in transport.

The government leaves the option open to impose a correction factor from 2030.

Although the EU Fuel Quality Directive increases the maximum share of bio-based components to 10pc in diesel, the Dutch government said fuel suppliers must continue to offer B7 — diesel with up to 7pc biodiesel — as a protection grade, because of the large number of cars incompatible with B10.

Companies will be able to carry forward any excess EREs to the next compliance year. Companies with an annual obligation can carry forward up to 10pc of the total amount of EREs needed to fulfil their obligation in a year, with registering companies allowed to carry forward 4pc. Dutch renewable fuel tickets (HBEs) carried into 2026 will be converted into EREs on 1 April 2026, the government said.

By Evelina Lungu and Anna Prokhorova

Note: The table on ‘Overview of future Dutch obligations’ can be viewed here

 

Photo credit and source: Argus Media
Published: 26 June, 2025

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Alternative Fuels

China: SIPG Energy completes first simultaneous two-vessel, two-fuel green bunkering operation

SIPG Energy says the simultaneous LNG and bio-methanol bunkering operations demonstrate Shanghai Port’s expanding capability to supply multiple green marine fuels at anchorage.

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Shanghai port completes first simultaneous two-vessel, two-fuel green bunkering operation

SIPG Energy (Shanghai) Co Ltd (SIPG Energy) on Sunday (16 August) completed what it described as China’s first simultaneous two-vessel bunkering operation involving two different green marine fuels at anchorage, supplying LNG and bio-methanol to two vessels.

The company’s LNG bunkering vessel Hai Gang Wei Lai supplied LNG to PIL’s KOTA ELAN, while methanol bunkering vessel Hai Gang Zhi Yuan supplied domestically produced biomass-based methanol to CMA CGM’s dual-fuel container ship CMA CGM OSMIUM.

According to SIPG Energy, the two bunkering operations were carried out simultaneously and safely, highlighting Shanghai Port’s growing ability to provide diversified and large-scale green-fuel bunkering services at anchorage.

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The operation required enhanced coordination in safety management, resource allocation and emergency response. Shanghai Maritime Safety Administration, Shanghai Customs and Shanghai General Station of Immigration Inspection, along with other supporting organisations, provided regulatory guidance and operational support.

“The combined efforts of all parties significantly improved the efficiency of bunkering at anchorage,” the company said. 

The company said it will continue to expand its safe bunkering capabilities for bio-methanol, LNG and other green marine fuels, while broadening its fuel supply portfolio and service scenarios to support the shipping industry’s transition to lower-carbon marine fuels.

 

Photo credit: SIPG Energy
Published: 17 August, 2026

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Bunker Alerts

Low flashpoint found in Indonesia bunker fuels, alerts Maritec-Naias

Firm tested eight bunker samples representing LSMDO and B40 fuel grade from vessels that took fuel oil /bunkered in Indonesia ports, which indicated flashpoints as low as 39.5°C.

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RESIZED Shaah Shahidh on Unsplash

Bunker fuel testing and marine surveying business Maritec-Naias on Wednesday (12 August) issued an alert regarding bunker samples from vessels that took fuel oil/bunkered in Indonesia showing flashpoints as low as 39.5°C:

During the period of 21 July to 04 August 2026, Maritec-Naias tested eight bunker samples representing Low Sulfur Marine Distillate Oil (LSMDO) and B40 fuel grade from vessels that took fuel oil /bunkered in Indonesia ports, which indicated Flashpoints as low as 39.5°C.

All eight fuel samples tested were sourced from a single supplier.

Regulatory Implications:

Based on the results of the eight samples tested, the fuels do not comply with the minimum flashpoint requirement of 60 °C set by SOLAS and ISO 8217.

As per SOLAS requirements, the minimum flashpoint of any fuel carried in the tanks of a ship should be not less than 60 °C (with exception of fuel for lifeboats, which can be grade DMX with a flash point min of 43 °C).

ISO 4259 interpretation for tested flashpoint temperature is not taken into consideration here as the safety of onboard crew and vessel is of higher precedence.

Since 01 May 2024, it has been a MARPOL Annex VI requirement that the Bunker Delivery Note (BDN) includes either the actual flashpoint of a fuel as supplied or a declaration that its flashpoint has been determined as being at or above 70°C.

From 1 January 2026, SOLAS amendments clarified that the flashpoint requirement applies to fuels, which were specifically intended to have a flashpoint not less than 60°C as required under SOLAS II‑2/2.1.1 These amendments now align with MARPOL by requiring flashpoint details to be recorded on the BDN. Additionally, prior to bunkering, suppliers must provide the ship’s representative with a signed declaration confirming that the fuel meets the SOLAS flashpoint standard.

MARITEC-NAIAS RECOMMENDATIONS

When ordering fuels from Indonesia it is advised to insist on getting the actual flash point values from the supplier. If your vessel has bunkered a low flashpoint fuel it is prudent to observe/implement the precautions below:

  • Flame screens on tank vents should be maintained in good condition and there should be no sources of ignition in the vicinity of the vents. This will assist in safe natural ventilation of volatile components in the fuel.
  • No Smoking, no naked flame and no hot work must be allowed at any areas near to tank air vents.
  • Send additional tank(s) samples upon arrival in port to check the fuel properties and flash point results especially if there has been co-mingling of fuels in bunker tanks
  • If the vessel is out at sea, it may be possible to obtain dispensation from your Flag State Administration up to the next arrival port.
  • Put the supplier on notice promptly and notify your P&I club.

 

Photo credit: Shaah Shahidh on Unsplash
Published: 13 August, 2026

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Alternative Fuels

South Korea’s Polaris Shipping orders tri-fuel bulk carriers for Vale charter deal

Bulk carriers, which will be delivered sequentially from 2031, will be equipped with WinGD-developed engines capable of using methanol, ethanol and heavy fuel oil as marine fuels.

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South Korea’s Polaris Shipping orders tri-fuel bulk carriers for Vale charter deal

South Korean shipowner Polaris Shipping recently said it has signed a newbuilding contract for four tri-fuel vessels with Chinese shipbuilder Qingdao Beihai Shipbuilding Heavy Industry on 4 August.

The 210,000-dwt Newcastlemax bulk carriers, which will be delivered sequentially from 2031, will be equipped with WinGD-developed engines capable of using methanol, ethanol and heavy fuel oil as marine fuels.

The vessels are also designed as LNG- and ammonia-ready ships, allowing them to be converted to LNG or ammonia propulsion in the future.

Polaris Shipping also plans to significantly improve energy efficiency and reduce greenhouse gas emissions by applying various energy-saving technologies, including wind-assist propulsion systems, rotor sails, departure optimisation and land-based systems, to the vessels.

Polaris Shipping has completed a 25-year long-term charter contract for the bulk carriers with Brazilian iron ore producer Vale.

Polaris Shipping plans to sign construction contracts for up to four additional 210,000-dwt eco-friendly Newcastlemax bulk carriers with Chinese shipbuilder Hengli Heavy Industries in the near future. The Newcastlemax bulk carriers ordered from Hengli will be built as high-efficiency, environmentally friendly vessels to replace the company’s existing older bulk carriers.

 

Photo credit: Polaris Shipping
Published: 13 August, 2026

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