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Argus Media: Ammonia-bunker price spread to remain wide

While ammonia is still only used as a marine fuel in pilot projects, the price spread is indicative of the challenges ahead of its growing use, says Argus Media.

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Ammonia’s price premium to conventional marine fuels is likely to remain wide for the remainder of the year thanks to high natural gas prices and the expected rebound in fertilizer demand in the fall.

4 August 2022

In July, northwest Europe grey ammonia was assessed at three times the price of very low-sulphur fuel oil (VLSFO), and at 2.2 times the price of marine gasoil (MGO) sold in Amsterdam-Rotterdam-Antwerp, Argus assessments showed. Grey ammonia in the US Gulf coast was pegged at 2.9 times the price of VLSFO and at 2.2 times the price of MGO sold in Houston.

Middle East grey ammonia had the most favorable pricing compared with conventional bunkers — at 2.2 times the price of VLSFO and at 1.6 times the price of MGO sold in Fujairah in July.

Ammonia is considered by the marine shipping industry as a future fuel that will help reduce emissions as it does not emit CO2 when burned. By comparison a tonne of residual fuel oil emits about 3.151t of CO2 and one tonne of MGO emits about 3.206t of CO2 when burned.

While ammonia is still only used as a marine fuel in pilot projects, the price spread is indicative of the challenges ahead of its growing use. Among the latest ammonia-fueled vessel projects announced are Japanese shipping firm NYK Line’s plan to develop an ammonia-powered tugboat in 2024-2025, and Singapore-based shipping company Pacific International Lines ordering four LNG-powered containerships, which will be also equipped with an ammonia-ready fuel tank, also for 2024-2025.

Prices for natural gas, a feedstock for ammonia, are not expected to ease for the rest of 2022 as the market responds to concerns Russia will continue to squeeze or cut natural gas exports to Europe. Western European ammonia producers continue to scale back output in response to the higher prices and increasingly seek imports from lower-cost sources. Germany’s BASF, for example, plans to cut its ammonia production in the event of gas supply shortages.

Separately US agricultural chemicals producer LSB Industries expects higher corn prices, driven by supply concerns from South America and the western US, coupled with strong demand for corn in China and resilient ethanol demand in the US, to support farmer earnings and support higher ammonia pricing through the fourth quarter and into 2023.

While marine fuel sales and consumption are not subject to greenhouse gas restrictions, fees or taxes, the EU has two proposals in the works that would change that. One proposal would add 100pc of marine emissions to the European emissions trading system (ETS) starting in 2024. An earlier proposal called for adding 20pc of emissions to the ETS from 2023, gradually increasing to 100pc from 2026. The proposals apply to emissions generated from burning the fuel.

By Stefka Wechsler

Related: Japan: MOU entered to develop ammonia-fuelled tugboat for Yokohama city
Related: PIL orders four 8,000 TEU LNG DF container vessels from Yangzijiang Shipbuilding
Related: Singapore: PIL in newbuilding order for four LNG DF 14,000 TEU container vessels

 

Photo credit and source: Argus Media
Published: 8 August, 2022

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Alternative Fuels

TMD Energy and Double Corporate to negotiate on bioenergy sustainable fuel solutions deal

TMD Energy and bioenergy firm Double Corporate entered into a MoA to explore a strategic collaboration in the business of bioenergy sustainable fuel solutions for Malaysia and global markets.

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Malaysia- and Singapore-based marine fuel bunkering services provider TMD Energy Limited (TMDEL) on Wednesday (18 June) announced the company has entered into a Memorandum of Agreement (MoA) with bioenergy firm Double Corporate Sdn Bhd to explore a strategic collaboration in the business of bioenergy sustainable fuel solutions for Malaysia and global markets. 

The company said this collaboration marks a new milestone towards TMDEL’s strategy to expand into sustainable and alternative fuel energy sectors. The MOA initiates exclusive negotiations to formalise partnerships in bioenergy sustainable fuel solutions and operational integration.

On 21 April, TMDEL, a 65.08%-owned subsidiary of Straits Energy Resources, was listed on the New York Stock Exchange American (NYSE American).

TMDEL and its subsidiaries (TMDEL Group) are principally involved in marine fuel bunkering services specializing in the supply and marketing of marine gas oil and marine fuel oil of which include high sulphur fuel oil, low sulphur fuel oil and very low sulphur fuel oil, to ships and vessels at sea. 

TMDEL Group is also involved in the provision of ship management services for in-house and external vessels, as well as vessel chartering services.

Double Corporate is a ISCC-EU certified Malaysian-based bioenergy company specialising in waste-based bioenergy and it involves converting waste into high-yield sustainable fuels and lubricants using proprietary, ISCC-EU-approved technology. 

Double Corporate has a decade-long expertise in producing high-yield, low-emission biofuels suitable for applications in the sustainable aviation fuel (SAF) and sustainable marine fuel (SMF) markets, particularly in Europe and Asia.

Dato’ Sri Kam Choy Ho, Chairman and CEO of the company, said: “This partnership aligns with our vision to expand regionally and globally to advance long term sustainable, green business and fuel innovation. Double Corporate’s circular-economy focus complements our commitment to environmentally responsible energy solutions.”

The MOA establishes the parties’ intention to enter into mutual discussions to collaborate and participate in the business in Malaysia and globally with a one-year exclusivity period for negotiations, extendable by mutual consent. Both parties will prioritise finalising definitive agreements within the exclusivity window.

 

Photo credit: TMD Energy
Published: 19 June, 2025

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Singapore-based Proteus Energy introduces hydrogen fuel cell system for maritime sector

Company has partnered with hydrogen fuel cell company Symbio France to develop the Proteus Maritime Fuel Cell Solution, a modular hydrogen fuel-based system for ports and vessels.

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Singapore-headquartered clean energy provider Proteus Energy on Wednesday (18 June) has developed the Proteus® Maritime Fuel Cell Solution, a modular hydrogen fuel-based system for ports and vessels. 

The first offering is the Proteus®75. Each fuel cell stack is 75 kW output, and these can be combined for larger power requirements. The vessel types being targeted are harbour craft, and vessels in the coastal, offshore support, and in-land waterway segments.

The technology has been developed in partnership with Symbio France, a world leading hydrogen fuel cell company with over 30 years track record. Symbio is jointly owned by global industrial groups Michelin, Stellantis, and Forvia.

“The maritime industry needs viable clean energy solutions today,” said Dr Lars Gruenitz, CEO of Proteus Energy. “We are providing a high energy density solution that is compact and lightweight, which is critical for vessels where space and weight considerations are imperative. This best-in-class system is the logical and most cost-effective choice to help operators make a quantum leap in their decarbonisation efforts”.

The Proteus® Maritime Fuel Cell Solution can be delivered as a modular powerpack or customised and fitted into vessels.

Proteus’ fuel cell technology also complements electric propulsion and offers a powerful solution for hybrid vessels by extending their range and easing the load on batteries, thus improving space efficiency and vessel performance.

The Proteus® Maritime Fuel Cell Solution will be backed by a two-year performance guarantee from Symbio France.

Symbio’s systems have already logged millions of kilometers powering cars, buses and commercial trucks across Europe. Now, that same rigorous, road-tested performance is being deployed at sea with added protections for marine operating conditions.

The fuel cell stacks are produced at Symbio’s gigafactory in Lyon, France, using robotic assembly systems capable of producing thousands of units annually.

This high-throughput capability ensures that Proteus can meet rising demand without sacrificing quality – something only established and proven hydrogen fuel cell manufacturers can claim.

What also sets Proteus apart is its ability to bring economies of scale, continuous R&D, and tried and tested reliability from land transport into the marine environment. 

To provide a convenient fuel storage option, Proteus also offers high-pressure hydrogen storage tanks developed with its partner Forvia, a major global components and technology company. The DNV type-approved tanks, which are already available for delivery, offer a safe and easy way to store hydrogen onboard vessels and will be produced on an industrial scale.

In addition, Proteus works with port operators to provide them with customised refueling solutions and infrastructure.

The Proteus® Maritime Fuel Cell Solution is expected to be available for delivery beginning January 2026, with type approval from DNV anticipated before the end of this year. Proteus is ready to work with customers now.

 

Photo credit: Proteus Energy
Published: 19 June, 2025

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Ammonia

DNV awards AiP to SeaTech Solutions for new ammonia bunkering vessel design

Vessel is specifically designed to deliver low-carbon ammonia to ammonia dual-fuelled bulk carriers at the Port of Dampier and can supply up to 9,000cbm of fuel.

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DNV awards AiP to SeaTech Solutions for new ammonia bunkering vessel design

Classification society DNV on Wednesday (18 June) said it has awarded an Approval in Principle (AiP) to SeaTech Solutions International (SeaTech) in collaboration with Oceania Marine Energy (Oceania) for the design of a new 10,000cbm ammonia bunkering vessel. 

This AiP builds on a recent Memorandum of Understanding (MoU) between DNV, SeaTech, and Oceania, initiated at Singapore Maritime Week and signed in April this year.

Located in the Pilbara region, home to the world’s largest bulk export port, the Port of Dampier is emerging as a potential hub for low-carbon ammonia bunkering.

Driven by a rising demand for low- and zero-carbon shipping fuels from the region’s mining and export industries, the port has built considerable experience in dealing with ammonia cargoes and vessels and is developing a strategy to facilitate ammonia bunkering operations. This includes the successful completion of its first ship-to-ship pilot bunkering transfer in September 2024. 

Measuring 130-metres, the ammonia bunkering vessel is specifically designed to deliver low-carbon ammonia to ammonia dual-fuelled bulk carriers at the Port of Dampier. It can supply up to 9,000cbm of fuel, sufficient to support two round-trips of iron ore shipment between Australia and North Asia. The vessel’s optimized arrangement and advanced containment systems enable efficient ship-to-ship transfers while ensuring the safe handling of ammonia as both a cargo and marine fuel.

Nick Bentley, Managing Director at Oceania Marine Energy, said: “Oceania is proud to have worked in tandem with DNV and SeaTech to deliver a flagship, low-emissions marine fuel solution at the heart of Australia’s heaviest resource export hub. The completion of this MOU and Approval in Principle (AiP) award by DNV for our 10,000m³ clean ammonia bunker vessel marks a major milestone in developing the supply and bunker operation foundations for the low-carbon shipping Pilbara–Asia green-corridor.

“This initiative reinforces Oceania’s commitment to deliver 1 million tonnes of clean marine fuel by 2030 and positions Dampier in Western Australia as a future leader, enabling the shipping industry’s transition to near net-zero marine fuel.”

Prabjot Singh Chopra, Vice President of Technology at SeaTech Solutions, said: “We are proud to work alongside Oceania and DNV to bring this innovative ammonia bunkering vessel design to life. As part of the maritime industry’s multi-fuel transition to low- and zero-carbon energy, ammonia stands out as a viable option for long-haul shipping—and enabling its safe and efficient delivery is critical.”

“Our vessel design incorporates a high level of automation and smart control systems to ensure safe handling of ammonia, enhancing both crew safety and operational reliability during ship-to-ship transfers. This Approval in Principle marks a key milestone, not just for the vessel, but for the broader ecosystem that must be in place to support ammonia bunkering. With Dampier emerging as a green marine fuel hub, and with SeaTech (Australia) actively engaged in supporting decarbonisation initiatives aligned with Australia’s net zero ambitions, we bring a strong track record and deep expertise to deliver practical, scalable solutions that enable the decarbonisation of global shipping.”

Antony M Dsouza, Senior Vice President & Regional Manager, South East Asia, Pacific & India, Maritime at DNV, added: “Scaling up production and bunkering infrastructure remains one of the biggest challenges in the maritime energy transition, and will be vital to the adoption of alternative fuels at scale.”

“This AiP is another step in realizing operationally ready bunkering capabilities and strengthening industry confidence in the potential of ammonia as a carbon-free fuel for shipping. At DNV, we’re proud to support forward-thinking partners like SeaTech and Oceania with the trusted technical assurance and deep expertise needed to realize the industry’s decarbonization ambitions.”

DNV has a long history of working on initiatives to support the development and uptake of ammonia as a marine fuel, including a recent ammonia bunkering safety study for the Global Centre for Maritime Decarbonisation (GCMD), which was utilized in the ship-to-ship ammonia transfer pilot at the Port of Dampier.

Related: GCMD: STS ammonia transfers pave way for ammonia bunkering in Pilbara region

 

Photo credit: DNV
Published: 19 June, 2025

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