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Argus Media: IMO-compliant fuel enquiries arise in Fujairah

Local bunker suppliers receiving exploratory enquiries from trading firms about 0.5%S LSFO availability.

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Global energy and commodity price reporting agency Argus Media on Thursday (7 February) provided an industry update regarding IMO-compliant fuel enquiries in Fujairah:

Bunker suppliers in Fujairah have been receiving exploratory enquiries from trading firms about the availability of 0.5pc low-sulphur fuel oil (LSFO).

Interest began in January, with potential buyers seeking detail on supplies and potential pricing mechanisms of LSFO, suppliers said.

This week, a number of physical bunker suppliers in Fujairah received an enquiry from a European bunker trading firm for around 2,000t of 0.5pc LSFO for 19-21 February supply in Fujairah.

"For the producers or suppliers to be interested in selling, the demand or the order volume will need to be considerably higher than 2,000t. If there were an enquiry for a 6,000t barge of LSFO, with sufficient time to produce, then producers could be interested," a Fujairah trader said.

LSFO will likely be available from a number of firms in Fujairah, primarily Vitol and German firm Uniper.

The latter can produce up to 300,000t a month of LSFO at full capacity from its simple crude-processing facility at the port. Uniper produces around 50,000t of 0.1pc ultra-low sulphur fuel oil (ULSFO) by processing low sulphur crudes, which it exports for use in Emission Control Areas (ECAs) in Asia-Pacific. It plans to ramp up 0.5pc LSFO production later in 2019 to meet bunker demand for IMO-compliant marine fuels.

Bunker sales at Fujairah have fallen since vessels flying the Qatari flag were banned from UAE ports in 2017. This removed an estimated 150,000-250,000t of demand each month, and sales volumes at Fujairah are now an estimated 8-10mn t/yr. Marine-grade HSFO with maximum sulphur content of 3.5pc constitutes more than 95pc these volumes, and replacing this with compliant marine fuels by 2020 will be challenging given a lack of desulphurisation capacity in the region.

Trading in significant volumes of non-compliant bunker fuel oil in Fujairah is likely to continue post-2020, especially on routes within the Mideast Gulf and from vessels with onboard sulphur scrubbing technology. Saudi Arabia, the UAE, Kuwait, Bahrain, Iraq and Qatar are not members of ship pollution convention MARPOL, and this absence of enforcement and punishment mechanisms, combined with profitable economics, could prompt shipping firms to continue burning non-compliant fuel oil on intra-Gulf routes.

Penalties for infringement of MARPOL regulations range widely from one country to another, even in ECA areas. The penalty in some of the Baltic countries is $5,000; in Belgium violators could pay up to $6mn.

Source: Argus Media
Published: 8 February, 2019

 

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Biofuel

GCMD concludes its final biofuel blend supply chain trial with Hapag-Lloyd

bp provided the B30 biofuel blend to the “TIHAMA”, a 19,870 TEU container vessel operated by Hapag-Lloyd in final trial; marks the end of a series of trials initiated in July 2022.

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GCMD concludes its final biofuel blend supply chain trial with Hapag-Lloyd

The Global Centre for Maritime Decarbonisation (GCMD) on Thursday (18 July) said it has successfully completed its final supply chain trial for biofuel blended with very low sulphur fuel oil (VLSFO). 

This marks the end of a series of trials initiated in July 2022 as part of a larger pilot to develop a framework to provide quality, quantity and GHG abatement assurances for drop-in fuels.

In this final trial, bp provided the B30 biofuel blend to the TIHAMA, a 19,870 twenty-foot equivalent unit (TEU) container vessel operated by Hapag-Lloyd.

The biofuel component used is certified to the International Sustainability & Carbon Certification (ISCC) standard – a multistakeholder certification scheme for biobased materials. The biofuel component comprised neat Fatty Acid Methyl Ester (FAME) produced from food waste.

Authentix, a tracer solutions provider, supplied and dosed the FAME with an organic-based tracer at the storage terminal outside the Netherlands. The dosed FAME was then transported to the Port of Rotterdam for blending with VLSFO to achieve a B30 blend, before the blend was bunkered onboard the TIHAMA.

Similar to previous trials, GCMD engaged fuel testing company Veritas Petroleum Services (VPS) to witness the operations at all stages – from biofuel cargo transfer to bunkering. VPS also collected and conducted extensive laboratory tests on samples of the biofuel and biofuel blend collected at pre-determined points along the supply chain to assess quality per Standards EN 14214 and ISO 8217.

With well-to-wake emissions of 13.74 gCO2e/MJ, the neat FAME presented a 85.4% emissions reduction compared to the emissions of the fossil marine fuel. The reduced emissions complies with the MEPC 80, which requires a minimum emissions reduction of 65% in order for biofuels to be classified as sustainable.

GCMD and Hapag-Lloyd determined that consumption of the 4,500 MT B30 blend of FAME and VLSFO resulted in 27.9% emissions reduction compared to sailing on VLSFO.

A newly developed tracer deployed with this supply chain

GCMD collaborated with Authentix to develop and deploy a new organic-based tracer to authenticate the origin and verify the amount of FAME present in the blend. The proprietary tracer blended homogeneously with FAME and was detected at expected concentrations at all sampling points along the supply chain.

This trial marks the first deployment of this tracer in a marine fuel supply chain. Previously, similar tracers were used to authenticate and quantify biofuels in road transport and LPG supply chains.

Development of a comprehensive biofuels assurance framework underway

With the completion of this trial, GCMD has deployed a diverse range of tracer technologies, including synthetic DNA and element-based tracers, in addition to the organic-based tracer used in this trial. The trials have also included the development of a chemical fingerprinting methodology and the evaluation of lock-and-seal and automatic identification systems (AIS) as additional solutions to ensure the integrity of the biofuels supply chain.

Learnings on tracer limitations and benefits will be incorporated into a framework that recommends appropriate use to ensure consistent and robust performance. This effort will complement existing ISCC by providing additional supply chain assurance through physical traceability.

The insights from these trials will be shared in a series of reports covering issues, such as traceability, biofuel degradation, supply chain optimisation and abatement costs. These findings will culminate in a comprehensive assurance framework to provide guidance on biofuels use, slated for release in the fourth quarter of 2024.

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 19 July 2024

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Ammonia

MPA, ITOCHU and partners sign MoU on ammonia-fuelled bulk carriers study

As a government agency, MPA,will review and provide their views to the designs of the ammonia-fuelled ships to ensure their safe operations, says ClassNK.

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Classification society ClassNK on Thursday (18 July) said it signed a Memorandum of Understanding (MoU) with ITOCHU Corporation, Nihon Shipyard Co., Ltd., and Maritime and Port Authority of Singapore (MPA) regarding a joint study for the design and safety specifications of ammonia-fuelled ships which are under development by ITOCHU and partners.

“The discussion for a specification of ammonia-fuelled ships with a governmental body related to their operation is essential for a social implementation of ammonia-fuelled ships,” ClassNK said. 

“As one of parties of the MoU, MPA, a government agency overseeing the world’s busiest bunkering hub, will review and provide their views to the designs of the ammonia-fuelled ships to ensure their safe operations.”

The MoU is based on the premise that 200,000 deadweight ton class bulk carriers will be built by Nihon Shipyard with an ammonia dual-fuelled engine.

“The necessary clarifications of the specification for the ammonia-fueled ship to carry out ammonia bunkering in Singapore will be conducted among parties of this MoU, for the commercialisation of ammonia-fuelled ships,” ClassNK added.

 

Photo credit: Venti Views on Unsplash
Published: 19 July 2024

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Biofuel

“K” Line to use biofuel on three Gram Car Carriers-chartered vessels in Singapore

Biofuel will be supplied to the sister vessels “Viking Ocean”, “Viking Diamond” and “Viking Coral” while bunkering in Singapore, says Gram Car Carriers.

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“K” Line to use biofuel on three Gram Car Carriers-chartered vessels in Singapore

Norwegian transportation firm Gram Car Carriers (GCC) on Thursday (18 July) said Kawasaki Kisen Kaisha (“K” LINE) will use biofuel on three vessels chartered from GCC from July onwards. 

“The biofuel will be supplied to the sister vessels Viking Ocean, Viking Diamond and Viking Coral while bunkering in Singapore, an Asian hub for marine biofuels,” GCC said on its social media. 

“The use of biofuel is a key environmental initiative to reduce emissions across the entire value chain (well-to-exhaust) and an effective way of transitioning to low-carbon marine fuels amid globally tightening environmental regulations.”

“We support the green mobility shift. This means that GCC commit to supporting the transition of both vehicles and their logistic chain towards a zero-emission future in close cooperation with leading customers such as K-Line,” said Georg A. Whist, CEO of GCC.

 

Photo credit: Gram Car Carriers
Published: 19 July 2024

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