Connect with us

Alternative Fuels

Argus Media: EU agrees on GHG bunker fuel intensity cuts in shipping sector

European Parliament and EU member states have agreed that GHG intensity of bunker fuels used in ships over 5,000 GT should be cut by 80% by 2050, from a 2020 baseline.

Admin

Published

on

5e16c2fc7aa8e 1578550012 1

The European Parliament and EU member states have today agreed that the greenhouse gas (GHG) intensity of fuels used in ships over 5,000 gross tonnage (GT) should be cut by 80pc by 2050, from a 2020 baseline, increasing the sector’s contribution to the wider EU emissions target.

23 March, 2023

The parliament and council also agreed that the GHG intensity of fuels in the shipping sector needs to decrease by at least 2pc from 2025, 6pc from 2030, 14.5pc from 2035, 31pc from 2040 and 62pc as of 2045. The regulation would double count GHG cuts from renewable hydrogen and green ammonia.

The targets cover CO2, methane and nitrous oxide emissions over the full lifecycle of the fuels, according to the commission. It applies to energy used on board ships, in or between EU ports and to 50pc of the fuel used “on voyages where thee departure or arrival port is outside of the EU or in EU outermost regions”.

All GHG cuts are relative to a defined 2020 GHG level of 91.16g of CO2 per MJ. The agreement also sets out that if the commission reports that the share of renewable fuels of non-biological origin (RFNBOs), including hydrogen, accounts for less than 1pc of the shipping sector fuel mix in 2031, a 2pc RFNBOs fuel use target will be set from 2034.

The commission put forward the legal proposals in July 2021 to mandate an average GHG intensity cuts for energy used in the shipping sector by 6pc by 2030, by 49pc by 2050 and by 75pc by 2050, all from 2020 levels.

It is charged with reviewing the rules by 2028, and if appropriate, proposing extending the GHG intensity cuts to smaller ships, or increasing the 50pc coverage of GHG cuts for non-EU journeys.

The political agreement, which needs to be formally approved by EU member states and the whole parliament, obliges containerships and passenger ships to use on-shore power supply from 2030 and in the rest of EU ports from 2035.

Waterborne transport accounted for 3-4pc of the bloc’s total CO2 emissions in 2021, according to the EU, which said that the new targets will give the legal certainty that ship operators and fuel producers need and support production of sustainable maritime fuels on a large scale.

Swedish centre-right EPP member Jorgen Warborn said the regulation will guarantee the shipping sector long-term rules and predictability. And EU transport commissioner Adina Valean said the agreement sets a long-term signal to shipowners, operators, fuel producers, shipyards and equipment manufacturers to invest in sustainable maritime fuels and zero-emission technologies.

But German green Jutta Paulus said the compromise falls “far short” of what is “technically possible and necessary” from a climate policy perspective. “The EU limits itself to microscopic quotas for the 2020s and provides no incentives for additional investments in sustainable synthetic fuels,” Paulus said, pointing to a “Swiss cheese” law with numerous exceptions.

“This is the beginning of the end for fossil fuels in shipping,” said Faig Abbasov, director of shipping at campaign group Transport & Environment (T&E). “LNG is still a compliant fuel for some time,” he added, noting less room for LNG to more stringent GHG reduction targets, mandates and mulitipliers for RFNBOs like hydrogen and green ammonia.

EU energy ministers had previously faced difficulties agreeing among themselves on the GHG reduction targets for the maritime sector and the on-shore power supply (OPS) requirements, penalties and geographical scope.

The European Community Shipowners’ Associations (ECSA) had pushed — unsuccessfully — for member states to accept mandatory requirements on fuel suppliers so as to ensure that shipowners are not “unduly penalised” if the sustainable fuels necessary for compliance are not delivered.

ECSA secretary general Sotiris Raptis told Argus earlier this month that if fuel suppliers were not included in the regulation there would “no guarantee that there will be sufficient quantities of renewable and low carbon fuels”.

The International Maritime Organization (IMO) is currently only targeting a 70pc cut in CO2 emissions intensity by 2050 from a 2008 baseline, with a target to reduce total annual GHG emissions by at least 50pc by 2050. IMO member countries are focusing on “revising” their initial 2018 strategy by mid-2023.

By Dafydd ab Iago

 

Photo credit and source: Argus Media
Published: 24 March, 2023

Continue Reading

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”.

Admin

Published

on

By

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

Continue Reading

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.

Admin

Published

on

By

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

Continue Reading

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.

Admin

Published

on

By

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

Continue Reading

Trending