Alternative Fuels

Japanese firms receive NEDO approval to begin ammonia-fuelled vessel demonstration projects

Tugboat and ammonia gas carrier will be powered by domestically produced ammonia-fuelled engines developed by IHI Power Systems and Japan Engine Corporation.

Published

5 years ago

October 27, 2021

Admin

NYK Line, Japan Engine Corporation, IHI Power Systems Co., Ltd., and Nihon Shipyard Co., Ltd. on Tuesday (26 October) said they have received an approval from Japan’s New Energy and Industrial Technology Development Organization (NEDO) for the companies to participate in a demonstration project to commercialise vessels equipped with a domestically produced ammonia-fueled engine as part of the Green Innovation Fund project.

The demonstration project scheduled to begin in December with ClassNK aims to use ammonia as fuel to significantly reduce greenhouse gas (GHG) emissions during voyages and thus introduce an ammonia-fueled vessel for the good of society earlier than 2030.

The companies will eventually work toward the goal of achieving zero emissions from ships in the future.

The companies and ClassNK’s greatest goals are to realise the development of an ammonia-fueled vessel that is internationally competitive ahead of other countries, and to lead the development of safety guidelines and laws and regulations related to ammonia-fueled vessels.

In order to achieve these goals, marine engine manufacturers, shipyards, class societies, and shipping companies in Japan will work together to consistently cooperate from the research and development stage to engine development, shipbuilding, and commercialisation, says NYK Line.

With the entry into force of the Paris Agreement in 2016, the global momentum for decarbonisation is increasing. The Japanese government has declared that it will reduce GHG emissions to zero as a whole by 2050 and aim for carbon neutrality, and the energy shift toward the realisation of a carbon-free society is accelerating.

Reducing GHG emissions is also an urgent issue in the shipping industry, and research and development is being conducted to convert marine fuel from conventional heavy fuel oil to liquefied natural gas (LNG) and to popularise next-generation zero-emission fuels such as hydrogen and ammonia.

Ammonia does not emit carbon dioxide (CO2) even when burned, so it is expected to be a next-generation fuel that contributes to global warming countermeasures.

Furthermore, it is said that by utilising CO2-free hydrogen for hydrogen, which is the raw material for ammonia, it is possible to achieve zero emissions in consideration of the fuel life cycle.

Under this background, Japan’s Ministry of Economy, Trade and Industry started the Green Innovation Fund project toward carbon neutrality by 2050, and NEDO has approved the Companies’ development of vessels equipped with a domestically produced ammonia-fueled engine as part of the Green Innovation Fund project, it states.

Overview of demonstration project and the roles of Companies

NEDO has approved these demonstration projects, (1) the development and operation of an ammonia-fueled tugboat and (2) the development and operation of an ammonia-fueled ammonia gas carrier, and the companies will carry them out.

(1) Development and operation of an ammonia-fueled tugboat (A-Tug)

The ammonia fuel will have a flame retardant bottleneck, which is difficult to ignite, so this project assumes that a small amount of fuel oil will be used as pilot fuel. Targeting the delivery of A-Tug in FY2024, the companies aim to reduce GHG emissions by achieving an ammonia fuel mixed combustion rate of 80% or higher.

The companies will confirm safe operation in demonstrations aimed to improve the mixed combustion rate with a view to achieving zero GHG emissions by using biofuel as a pilot fuel in the future.

NYK Line	Project management, ship design and legal compliance
IHI Power Systems Co., Ltd.	Research and design of four-stroke engine
Nippon Kaiji Kyokai (ClassNK)	Safety assessment of A-Tug

1 1

Image of A-Tug

(2) Development and operation of an ammonia-fueled ammonia gas carrier (AFAGC)

Targeting the ship’s delivery in FY2026, the Companies will develop and operate an ammonia-fueled ammonia gas carrier (AFAGC) with the concept of transporting ammonia as cargo and using the cargo and ammonia gas vaporized from the cargo as fuel during the voyage.

The Companies aim to reduce GHG emissions by achieving a maximum ammonia fuel mixed combustion rate of 95% for the main engine that moves the ship, and an ammonia fuel mixed combustion rate of 80% or more for the auxiliary engine that runs the generator.

NYK Line	Project management, ship design and legal compliance
Japan Engine Corporation	Research and design of two-stroke engine (main engine)****
IHI Power Systems Co., Ltd.	Research and design of four-stroke engine (auxiliary engine)
Nihon Shipyard Co., Ltd.	Development of hull, examination of ship construction method
Nippon Kaiji Kyokai (ClassNK)	Safety assessment of AFAGC

2 4

Image of AFAGC

Photo credit: NYK Line
Published: 27 October, 2021

Alternative Fuels

Olam Agri, Vitol Bunkers wrap up co-processed VLSFO bio-bunkering operation in Singapore

“MV Scion Mathilda” was supplied with 246.5 mt of co-processed VLSFO at the Port of Singapore, comprising 212 mt of conventional VLSFO and 34.5 mt of co-processed CNSL VLSFO.

Published

5 hours ago

August 21, 2026

Admin

Olam Agri, Vitol Bunkers wrap up co-processed VLSFO bio-bunkering operation in Singapore

Agri-business Olam Agri on Thursday (20 August) said it successfully completed Singapore’s first bio-bunkering operation with Vitol Bunkers, using Very Low Sulphur Fuel Oil (VLSFO) co-processed with Cashew Nutshell Liquid (CNSL), showcasing a waste-to-energy approach.

MV Scion Mathilda was supplied with 246.5 metric tonnes (mt) of co-processed VLSFO at the Port of Singapore, comprising 212 mt of conventional VLSFO and 34.5 mt of co-processed CNSL VLSFO. The product was supplied by Vitol Bunkers and procured by Olam Agri’s ocean freight business.

The fuel was subsequently consumed during a voyage from Caofeidian (China) to Rotterdam (Netherlands), followed by a ballast leg from Rotterdam to Barcarena (Brazil).

Total fuel consumption across the voyage comprised 1,354 mt of VLSFO, 101 mt of MGO and 34.1 mt of co-processed VLSFO. The vessel completed the voyage without any operational remarks, confirming the product’s performance in real-world conditions.

The operation marks a significant step forward in the search for practical, scalable alternatives to conventional marine fuels, and demonstrates that meaningful greenhouse gas (GHG) reductions can be achieved without any change to vessel operations.

Martin Fynbo, Head of Bunkers at Olam Agri’s ocean freight business, said: “The successful deployment of this product, achieving verified greenhouse gas mitigation alongside ensuring operational integrity, serves as a definitive proof of concept. This milestone provides validation to a traditionally risk-averse sector, demonstrating that a previously disregarded bio-product solution can both be operationally viable and sustainable.”

Sherman Yeo, Trading Manager, Vitol Bunkers, said: “This operation proves that co-processed VLSFO can be delivered and consumed at sea without any compromise to vessel performance or operational routine. The mass balance solution we have developed opens up a genuinely new avenue for GHG reduction in marine fuels.”

The co-processed VLSFO carries a GHG intensity of 2.02 gCO2eq/MJ, delivering savings of at least 120 MT CO2eq compared with conventional VLSFO on an equivalent basis. This outcome was achieved with no additional onboard handling or fuel treatment requirements.

Vitol’s co-processing and mass balancing methodology resolves a longstanding challenge in the use of CNSL as a marine biofuel. Direct blending of CNSL has historically been dismissed by the industry due to material compatibility and handling issues. By co-processing CNSL within the refinery stream, Vitol has opened a commercially viable pathway for CNSL to contribute to GHG reduction in shipping.

The co-processed VLSFO used in this operation conforms to RMG380 VLSFO grade and has the same chemical composition and quality as conventional fuel, eliminating the need for additional permissions or special clauses in charter party agreements.

“CNSL, derived as a by-product of cashew processing, represents an underutilised feedstock with genuine potential as a scalable marine biofuel component,” Olam Agri added.

“This trial demonstrates that with the right processing approach, it can be integrated into existing supply chains without disruption.”

Photo credit: Vitol
Published: 21 August, 2026

Alternative Fuels

China: CIMC Enric and Sinopec to team up on LNG, methanol bunker fuels in new deal

Under the new agreement, the companies will deepen cooperation across the LNG value chain and develop bunkering solutions including truck-to-ship bunkering services.

Published

5 hours ago

August 21, 2026

Admin

China: CIMC Enric and Sinopec to team up on LNG, methanol bunker fuels in new deal

Clean energy equipment and services provider CIMC Enric on Monday (17 August) said it has signed a strategic cooperation agreement with Sinopec Fuel Oil Sales Co Ltd, covering LNG, green methanol, shipbuilding and new energy for marine applications.

Under the new agreement, the companies will deepen cooperation across the LNG value chain and develop bunkering solutions including truck-to-ship bunkering services. They also plan to expand into emerging marine fuels and energy solutions, including green methanol and sustainable aviation fuel (SAF).

The partnership will focus on five areas: energy-resource cooperation, shipbuilding, marine-fuel bunkering, vehicle-related services and integrated services.

The agreement was signed in Shenzhen on 14 August by Yang Xiaohu, executive director and president of CIMC Enric, and Xu Tao, deputy general manager and Party committee member of Sinopec Fuel Oil.

The cooperation will span commercial implementation, industry development and technology innovation.

The partnership comes as the shipping industry accelerates its transition towards lower-carbon fuels amid tightening International Maritime Organization emissions regulations and China’s carbon-reduction goals.

CIMC Enric specialises in equipment for the clean-energy sector, while Sinopec Fuel Oil leverages the resource and supply network of China Petroleum & Chemical Corporation (Sinopec). Both said their complementary capabilities provide a basis for moving beyond a conventional equipment-supply relationship towards broader cooperation integrating equipment, fuels, applications and technology.

The two companies began working together in October 2022, initially focusing on LNG and CNG storage and transportation equipment. Their cooperation has since expanded into marine equipment, green methanol bunkering, storage and transportation equipment, and external gas-source procurement.

The companies said they will establish a regular cooperation mechanism and develop detailed projects to accelerate implementation. The partnership is intended to strengthen collaboration between energy-equipment and energy-supply companies and support the maritime industry’s transition towards lower-carbon fuels.

Photo credit: CIMC Enric
Published: 21 August, 2026

Ammonia

Azane signs ammonia bunkering deal with Equinor, first deliveries due in H2 2026

Both signed a framework agreement for the supply of ammonia and the execution of truck-to-ship ammonia bunkering operations for ammonia-fuelled vessels.

Published

5 hours ago

August 21, 2026

Admin

Azane signs ammonia bunkering deal with Equinor, first deliveries due in H2 2026

Azane Fuel Solutions (Azane) on Thursday (20 August) said it has signed a framework agreement with Equinor Energy AS for the supply of ammonia and the execution of truck-to-ship ammonia bunkering operations for ammonia-fuelled vessels.

The first deliveries will commence during the second half of 2026. The agreement establishes a framework for future ammonia fuel deliveries and bunkering operations supporting the maritime industry’s transition towards lower-emission solutions.

“This agreement marks an important milestone for Azane and demonstrates growing confidence in ammonia as a marine fuel,” said Steinar Kostøl, CEO of Azane.

“Truck-to-ship bunkering offers a practical and flexible solution for the early adoption of ammonia-fuelled vessels while the broader ammonia fuel ecosystem continues to develop.”

The agreement covers truck-to-ship ammonia bunkering operations, where ammonia is transported to the quayside and transferred directly to the receiving vessel.

The contract supports Azane’s strategy of enabling near-term deployment of ammonia as a marine fuel while continuing to develop dedicated ammonia infrastructure for future market growth.

Photo credit: Azane Fuel Solutions
Published: 21 August, 2026