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.

Published

8 months ago

March 24, 2023

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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

Alternative Fuels

DNV paper outlines bunkering of alternative marine fuels for boxships

Third edition of its paper series focuses on LNG, methanol and ammonia as alternative bunker fuel options for containerships; explores bunkering aspects for LNG and methanol.

Published

5 hours ago

November 29, 2023

Admin

DNV paper outlines bunkering of alternative marine fuels for boxships

Classification society DNV recently released the third edition of its paper series Alternative fuels for containerships, focused on LNG, methanol and ammonia as alternative bunker fuel options for containerships.

In its updated paper series, DNV examined the different alternative marine fuel options and provided an overview of the most important technical and commercial considerations for the containership sector.

It explored the bunkering technology for LNG, bunkering infrastructure for methanol, and availability and infrastructure of ammonia.

Building on the foundation laid in the second edition, which focused on the most important aspects of methanol as a fuel, this latest third edition delves deeper – exploring the technical intricacies and commercial considerations associated with adopting methanol as an alternative fuel for containerships.

Furthermore, it provides an overview of crucial aspects related to ammonia and discusses its potential as an alternative fuel for containerships.

Amongst others, the new edition of the paper looks at the following aspects:

Technical design considerations for methanol
Commercial implications of adopting methanol as an alternative fuel
Ammonia's potential as an alternative fuel
Availability, infrastructure and ship fuel technology for ammonia
Major updates based on the latest IMO GHG strategy decisions at the MEPC 80 meeting

Note: The third edition of DNV’s full paper titled Alternative Fuels for Containerships can be found here.

Photo credit: DNV
Published: 29 November, 2023

Alternative Fuels

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Tool is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering.

Published

5 hours ago

November 29, 2023

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EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Lloyd’s Register (LR) Maritime Decarbonisation Hub and Environmental Defense Fund (EDF), in collaboration with Arup, on Tuesday (28 November) introduced the Sustainable First Movers Initiative Identification Tool, a system to help shipping stakeholders align investment decisions that support the maritime energy transition away from fossil fuels.

The tool, which is presented in a preliminary findings report – The Potential of Ports in Developing Sustainable First Movers Initiatives – scores a port’s potential to produce and bunker electrofuels while delivering local environmental and community benefits in alignment with the global temperature target of 1.5 degrees Celsius set by the Paris Agreement.

“Ports can play an important role in kickstarting shipping’s decarbonisation process even before global policies are established,” said Marie Cabbia Hubatova, Director, Global Shipping at Environmental Defense Fund.

“By considering the impact sustainable first mover initiatives can have on port-side communities, climate, environment and economies, resources can be better directed to locations where these initiatives will make the biggest difference.”

With close to two billion people living near coastal zones globally, the role of, and impacts on local port communities must be intentionally considered as the sector decarbonises globally. Ports can play a crucial role in ensuring shipping decarbonisation efforts are done in a way that has positive impacts on port communities.

The preliminary phase of the Sustainable First Movers Initiative Identification Tool analyses 108 ports in the Indo-Pacific region according to five criteria including land suitability, air quality, renewable energy surplus, economic resilience and ship traffic.

It is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering. The combined criteria and scenario evaluation determines which ports have the greatest potential (high potential) for sustainable first mover initiatives to lead to significant emissions reductions and positive impacts in nearby communities, such as improved air quality and economic resilience.

“The transition to clean energy supply for shipping can be achieved only if stakeholders act together. Identifying potential port locations is the first step in this process,” said Dr Carlo Raucci, Consultant at Lloyd’s Register Maritime Decarbonisation Hub. “This approach sets the base for a regional sustainable transition that considers the impacts on port-side communities and the need to avoid regions in the Global South lagging behind.”

Regions in the Global South are fundamental in driving the decarbonisation of shipping. To make this transition effective, the rate at which different countries adopt and scale up electrofuels must be proportional to the difference in capital resources globally to avoid additional costs being passed on to local communities. Sustainable first mover initiatives can play an important role in making this happen by ensuring the sector’s decarbonisation is inclusive of all regions and by engaging all shipping stakeholders, including port-side communities.

“There’s a huge opportunity for early adopter shipping decarbonisation initiatives to unlock benefits for people and planet – shaping the way for a more equitable transition in the 2030s,” said Mark Button, Associate, Arup. “Our collective approach shows that taking a holistic view of shipping traffic, fuel production potential and port communities could help prioritise action at ports with the greatest near-term potential.”

The tool can be customised according to stakeholders’ needs and goals and is dependent on scenario desirability. The next phase of this work will include the selection and detailed assessment of 10 ports to help better understand local needs and maximise the value offered by sustainable first mover initiatives.

LR and EDF carried out a joint study on ammonia as shipping fuel, and LR and Arup have collaborated on The Resilience Shift study focused on fuel demand for early adopters in green corridors, ports, and energy systems, amongst many other projects.

Photo credit: Lloyd’s Register
Published: 29 November, 2023

Newbuilding

Wärtsilä signs agreement for first zero-emission high speed ferries in US

Group has signed a strategic partnership agreement to provide its Fleet Electrification and Systems Integrator Services for a project to build the first zero-emission high speed ferries in the United States.

Published

5 hours ago

November 29, 2023

Admin

Wärtsilä signs agreement for first zero-emission high speed ferries in US

Technology group Wärtsilä on Tuesday (28 November) said it has signed a strategic partnership agreement to provide its Fleet Electrification and Systems Integrator Services for a project to build the first zero-emission high speed ferries in the United States.

The fully electric vessels will be built for San Francisco’s Water Emergency Transportation Authority (WETA), the operator of the San Francisco Bay Ferry system.

The project, and several others Wärtsilä will work on under this partnership, are a part of the agency’s Rapid Electric Emission-Free (REEF) Ferry Program, a phased decarbonisation of high-speed, high-capacity ferry service in the San Francisco Bay.

Wärtsilä will work within the WETA project team to finalise vessel and charging system concepts.

“We’re proud to operate the cleanest high-speed ferry fleet in the nation, but a zero-emission future for our system is within reach,” said WETA Executive Director, Seamus Murphy.

“Wärtsilä’s expertise and experience will be incredibly valuable given the complexity our ferry decarbonisation program entails.”

“This is a major project within the maritime sector’s journey towards decarbonisation, and we are proud to be a part of it,” said Hanno Schoonman, Director of sales for AMER region, Wärtsilä Marine Power.

“Wärtsilä joins an industry leading team tasked to develop newbuild battery electric vessels that combine innovative technology and sustainable practices. Wärtsilä is well qualified to provide this project support, and this agreement is a clear endorsement of our strong track record in systems integration and emission-free propulsion.”

After completing the conceptual phase, WETA will move on to the initial construction phase of a multi-vessel programme. This phase will involve the building of three smaller ferries with a capacity of approximately 150 passengers each and two larger ferries capable of carrying at least 300 passengers.

Additionally, the scope of this phase will encompass the inclusion of battery charging floats. The construction of the first electric-powered vessel is slated to commence before the conclusion of 2023, with commercial operations expected to launch in 2025.

Photo credit: Wärtsilä
Published: 29 November, 2023