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DNV: Growing demand and bunker fuel uncertainties add to complexity of shipping’s decarbonisation

Decarbonisation seen as a chance for shipowners to differentiate, attract new cargo, and foster closer collaborations with customers, shares Jason Stefanatos, Global Decarbonization Director, DNV.

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The global shipping industry is grappling with the dual challenge of increasing transport volumes and an urgent need to decarbonise, transforming its perception of environmental mandates from a threat to a significant opportunity, believes Jason Stefanatos, Global Decarbonization Director, DNV.

During his keynote presentation New Fuels in the Shipping Industry at the IBIA Annual Convention 2025 in Hong Kong on Tuesday (18 November) Stefanatos forecasted a consistent rise in all transport segments, creating a substantial hurdle for an industry such as shipping to reduce its carbon footprint.

While specific figures vary, the overarching trend points to growth, compelling stakeholders to seek innovative solutions. Initially viewed with apprehension, decarbonisation is increasingly seen as a chance for shipowners to differentiate, attract new cargo, and foster closer collaborations with customers.

The following were Stefanatos’ observations:

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Fleet Readiness and Future Capacity

Currently, 8.9% of the global fleet is capable of burning alternative marine fuels, with liquified natural gas (LNG) holding the largest share due to its mature infrastructure and technology.

This figure, while seemingly small, represents significant progress in recent years. Looking ahead, the order book paints a more optimistic picture: over half of new vessels on order are designed with alternative fuel capabilities, signalling a substantial future shift.

However, this adoption is not uniform; segments like containerships, cruise liners, and car carriers show high uptake (75-80%), driven by end-users willing to pay a premium for greener products, while bulkers and tankers lag due to different commercial dynamics.

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The Looming Fuel Supply Gap

By 2030, based on existing orders and continued ordering rates, the global fleet could theoretically have the capacity to burn nearly 50 million metric tonnes of alternative marine fuels annually. This represents a significant portion compared to the industry’s total annual consumption of 280 million tons.

Yet, a critical challenge emerges on the supply side: under current net-zero frameworks, shipping would require 30% to 60% of the global green fuel production to avoid penalties. This is a stark contrast to shipping’s current 3-4% share of the global energy mix, raising concerns about competition with other sectors and the industry’s ability to secure sufficient green fuel at competitive prices.

Navigating the Alternative Marine Fuels Landscape

There is no single “golden solution” for decarbonisation; each bunker fuel option presents a unique set of technological, economic, safety, availability, and greenhouse gas credentials. The industry is primarily focusing on four key solutions:

  • LNG: The most mature alternative fuel, with over 1,300 non-LNG carrier vessels already capable of using it and a wide bunkering infrastructure. Its fossil nature and methane slip concerns remain key challenges, though it offers a pathway to renewable natural gas.
  • Methanol: Valued for its simplicity as a liquid fuel, making port infrastructure development easier and cheaper than for gas fuels. While fossil methanol has worse emissions than Heavy Fuel Oil (HFO), green methanol can meet 2050 targets. Regional dynamics, such as China’s focus on green methanol production, are significantly influencing its uptake, particularly among bulk carriers trading in the region.
  • Ammonia: A carbon-free molecule, offering the potential for actual zero emissions at the point of combustion. However, its well-to-wake emissions depend heavily on the production pathway, and engine technology is still in development, with major makers expected to deliver engines this or next year.
  • Biofuels: Offers a “quick fix” with minimal retrofits for compliance. However, their scalability is severely limited by the availability of sustainable biomass, with shipping currently consuming only 0.6% of global biofuels, facing intense competition from road and aviation sectors. The need for flexible chains of custody and robust global certification schemes is crucial to accelerate adoption.

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Uncertainty and the Call for Flexibility

“The path forward is marked by persistent uncertainty in regulations, supply chains, and technological advancements. Easy decision-making is not anticipated anytime soon,” concluded Stefanatos.

“Therefore, flexibility is paramount for shipowners, bunker suppliers, and fuel producers alike, recognising the complex interplay between production, distribution, and consumption in this evolving landscape.”

 

Photo credit: Manifold Times
Published: 26 November 2025

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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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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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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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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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