Business

Argus Media: Japan studies options to cut coastal shipping emissions

Japan is examining options on Thursday (July 1) to cut carbon dioxide (CO2) emissions from coastal shipping, as it considers raising an emissions target for the industry in line with the country’s more ambitious 46pc reduction target for 2030 on 2013 levels.

Published

5 years ago

July 2, 2021

Admin

Rieko Suda of global energy and commodity price reporting agency Argus Media on Thursday (1 July) published a report highlighting Japan’s plan to cut emissions of coastal vessels:

Japan is examining options on Thursday (July 1) to cut carbon dioxide (CO2) emissions from coastal shipping, as it considers raising an emissions target for the industry in line with the country’s more ambitious 46pc reduction target for 2030 on 2013 levels.

The transport ministry is discussing presenting a decarbonisation roadmap later this year for the country’s coastal shipping industry, which handles 40pc of domestic freight transport, as it seeks to revise the industry’s 2030 emissions reduction target to 17pc compared with 15pc previously.

The ministry is working out a separate policy for coastal shipping because of its structural problems that could hinder capital investment in greener operations, as the industry is dominated by small enterprises with limited working capital.

Around 4,000 operators and shipowners operated 7,400 coastal vessels, 70pc of which were past their 14-year service life, during the April 2018-March 2019 fiscal year.

This contrasts with the international shipping industry where 200 firms operated 2,600 ocean-going vessels.

The transport ministry is considering exploring next-generation vessels for coastal shipping, such as battery-operated and hydrogen fuel cell ships, along with LNG-fuelled ships, to reduce emissions and work towards decarbonisation.

The introduction of such ships is expected to be mostly limited to domestic shipping routes where infrastructure is sufficient until 2030, according to the ministry.

Japan has developed LNG bunkering infrastructure at key domestic ports since the 2015 launch of the country’s first LNG-fuelled ship Sakigake by shipping firm NYK Line.

Rival shipping firm Mitsui OSK Lines last year launched the LNG-fuelled coastal bulk carrier Is Mirai in central Japan’s Ise bay where LNG bunkering infrastructure has been set up.

The existing hydrogen pipeline at Yokohama-Kawasaki port has attracted a proposed pilot operation of a hydrogen-powered fuel cell passenger ferry from 2024.

More projects are in the pipeline for hydrogen-powered ships in efforts to take advantage of proposed hydrogen infrastructure at Kobe in west Japan, Chita and Yokkaichi in central Japan and Hibikinada in south Japan.

The existing hydrogen pipeline at Yokohama-Kawasaki port has attracted a proposed pilot operation of a hydrogen-powered fuel cell passenger ferry from 2024.

The coastal shipping industry has also made some progress in its shift to all-electric vessels particularly for small size, short-distance shipping.

Shipping firm NS United in 2019 launched a hybrid coastal bulk carrier that can run on a diesel engine or lithium-ion batteries. Shipbuilder Oshima Shipbuilding in 2019 commissioned a battery-powered electric passenger ship.

Coastal Expansion

The transport ministry expects use of greener ships will be expanded for coastal shipping after 2030 with further development of domestic supply infrastructure expected for carbon-neutral marine fuels, such as hydrogen, ammonia and synthetic fuels.

This is in line with Tokyo’s target to commercially deploy its first-generation zero-emissions vessels before 2028.

Tokyo is considering providing financial support for development of hydrogen- and ammonia-fuelled vessels, along with fuel supply infrastructure.

The transport ministry is also planning to continue pursuing energy efficiency in coastal shipping by launching next-generation vessels, including those with hybrid marine propulsion systems.

Such conventional fuel-efficient ships can be refitted with rechargeable batteries or hydrogen fuel cell batteries, or converted to be fueled with synthetic fuels after 2030 to achieve carbon neutrality.

It is also looking to improve efficient shipping operations, such as weather routing and use of onshore power to reduce emissions when moored at ports.

The ministry last year enforced a revised efficiency rating programme for coastal ships, targeting to help the industry enhance the fuel efficiency of their vessels.

A total of 43 coastal ships have so far been awarded the highest efficiency ranking, including three LNG-fuelled vessels.

Photo credit: Argus Media
Published: July 2,2021

Business

FLEX Commodities appoints Euwyn Tan as Senior Marine Fuels Trader in Singapore

Tan has experience across the marine fuels, bunkering and shipping markets, with a strong background in trading, procurement, commercial negotiations and developing relationships.

Published

23 hours ago

September 8, 2026

Admin

FLEX Commodities appoints Euwyn Tan as Senior Marine Fuels Trader in Singapore

Dubai-based bunker trading firm FLEX Commodities FZCO (FLEX) on Monday (7 September) announced the appointment of Euwyn Tan as its Senior Marine Fuels Trader based in Singapore.

Tan has experience across the marine fuels, bunkering and shipping markets, with a strong background in trading, procurement, commercial negotiations and developing relationships with shipowners and charterers across Asia and Europe.

Before FLEX, he was a Bunker Trading Manager in Propeller Fuels from 2023 to this month.

“Based in Singapore, Euwyn will play an important role in strengthening FLEX Commodities’ marine fuels trading capabilities and expanding our presence across the Asian market,” the company said in a social media post.

“We are delighted to have Euwyn on board and look forward to his contribution as we continue to grow our global trading business.”

Photo credit: FLEX Commodities
Published: 8 September, 2026

LNG Bunkering

Osaka Gas conducts Osaka Bay’s first STS LNG bunkering operation

Acting through Singapore-based marine fuel trading firm Integr8 Fuels, Osaka Gas supplied LNG bunker fuel to an LNG-fuelled PCTC operated by an overseas shipping company calling at the Port of Kobe.

Published

23 hours ago

September 8, 2026

Admin

Osaka Gas conducts Osaka Bay’s first STS LNG bunkering operation

Japanese energy company Osaka Gas on Friday (4 September) said it has successfully completed the first-ever ship-to-ship LNG bunkering operation in Osaka Bay, supplying LNG fuel to an LNG-fuelled PCTC.

The operation was conducted using SETO AZURE, an LNG bunkering vessel owned by Osaka Bay LNG Shipping Co Ltd, an affiliated company of Osaka Gas.

Acting through Integr8 Fuels Pte Ltd, a Singapore-based marine fuel trading company, Osaka Gas supplied LNG fuel to an LNG-fuelled PCTC operated by an overseas shipping company calling at the Port of Kobe.

Ship-to-ship bunkering will help ensure a stable supply of LNG fuel in the Osaka Bay area and support the development of the Port of Kobe as a Carbon Neutral Port.

In addition to ship-to-ship bunkering, Osaka Gas provides LNG fuel through truck-to-ship bunkering and port-to-ship bunkering. With capability covering all three major LNG bunkering methods, Osaka Gas provides flexible and reliable LNG fuel supply services to meet customers’ diverse needs.

The company said LNG bunkering infrastructure in Japan remains insufficient, highlighting the need to establish a stable fuel supply network to support the wider adoption of LNG-fuelled vessels.

Photo credit: Osaka Gas
Published: 8 September, 2026

Bunker Fuel

Bunker Holding, Dan-Bunkering to join USTC units at new Copenhagen hub

Employees from Bunker Holding, Dan-Bunkering, Global Risk Management, CM Biomass, Unit IT, Uni-Tankers, Selfinvest, and USTC will all be based together in a new shared USTC Hub.

Published

23 hours ago

September 8, 2026

Admin

Bunker Holding, Dan-Bunkering to join USTC companies at new Copenhagen hub

The owners and management of Danish-owned USTC have decided to consolidate the Group’s offices in the Greater Copenhagen area in a new shared USTC Hub, according to the Group on Monday (7 September).

Employees from Bunker Holding, Dan-Bunkering, Global Risk Management, CM Biomass, Unit IT, Uni-Tankers, Selfinvest, and USTC will all be based together in the new USTC Hub.

The lease will take effect on 1 December 2026, with employees and companies moving into the new hub in phases thereafter.

The chosen location is the brand-new Marmormolen development in Nordhavn, which will accommodate more than 150 workstations from across the Group’s companies under one roof.

The USTC Hub will provide better opportunities for the companies to connect and make the most of the possibilities that arise when independent businesses work in closer proximity. In that sense, the hub is a tangible expression of USTC’s approach: strong business acumen, a sense of cohesion and a keen eye for opportunities across the Group.

“In locations such as Houston and Singapore, we already have USTC Hubs where several of our companies are based together. This has created strong professional communities and valuable synergies across our organisation. We have therefore wanted to establish a similar concept in Copenhagen for some time. At the same time, the experience gained from our existing hubs will help us assess opportunities for additional hubs in other parts of the world where they make sound business sense,” said Nina Østergaard, co-owner and CEO of USTC.

The USTC Hub will span more than 3,000 square metres on the sixth floor of Marmormolen and will offer access to rooftop terraces as well as a range of shared facilities. This will provide an ideal setting for both formal and informal interactions across companies and teams.

According to Østergaard, however, the ambition is not to make the companies more alike.

“The hub is intended to be a platform for closer collaboration and knowledge sharing, but the aim is not to make our companies the same. Quite the opposite. Their differences are an important part of our strength. Each company has its own capabilities and direction. But by bringing people closer together, we create better opportunities to learn from each other, build bridges and make better use of the strengths that exist across our organisation,” said Østergaard.

The establishment of the USTC Hub will also support USTC’s ambitions for continued growth while creating a more attractive professional environment for employees.

“We are a Danish Group with offices around the world, and we have ambitions to continue developing. That makes it important for us to have a strong base in Copenhagen. It brings us closer to businesses, professional communities and some of the capabilities we will need in the future. At the same time, it gives us a stronger hand when it comes to attracting talented people,” said Østergaard.

“Our companies should, of course, retain their own identity. But it is equally important that there is something that connects us. To me, that includes strong business acumen, a sense of responsibility, keeping the distance from idea to action short, and staying close to the business.”

Photo credit: USTC
Published: 8 September, 2026