Rieko Suda of global energy and commodity price reporting agency Argus Media on Tuesday (20 July) published a report highlighting Japan’s JFE Steel chartering LNG fuelled Capesize vessels:
JFE Steel on Tuesday (20 July) said it has agreed with shipping firms K Line, Mitsui OSK Lines (Mol) and NYK Lines to charter an LNG-fuelled Capesize vessel each. The three 210,000 deadweight tonne (dwt) bulk carriers are being designed and built by Japanese shipbuilder Nihon Shipyard, a joint venture set up by Imabari Shipbuilding and Japan Marine United.
The company is planning a gradual shift of its fleet to LNG-fuelled vessels in efforts to reduce shipping emissions. The company will also consider deployment of zero-emissions vessels in the long term, such as those powered by ammonia and synthetic methane, as part of efforts to decarbonise its steel making operations by 2050.
JFE Steel is joining a move by global steel and mining firms to shift to more environmentally-friendly shipping logistics. The 180,000dwt LNG-fuelled bulk carrier HL Green was commissioned earlier this year for delivery of iron ore and coal to South Korean steel producer Posco. UK Australian resources firms BHP and Rio Tinto have also entered a newbuild LNG-fuelled bulker agreement with Singapore-based Eastern Pacific Shipping.
JFE Steel plans to produce 26.5mn t of crude steel during the April 2021-March 2022 fiscal year. The company is operating eight blast furnaces (BF), consisting of one each at Chiba and Kawasaki in east Japan and three each in Kurashiki and Fukuyama in west Japan. The at Kawasaki BF is planned to be closed by April 2024 under the firm’s structural reforms.
K Line said it is expecting to commission a newbuild LNG-fuelled Capesize vessel for JFE Steel during the first half of 2024. The new vessel is expected to achieve a 40pc energy efficiency design index (EEDI) reduction, topping the International Maritime Organisation’s 30pc EEDI phase 3 reduction requirement for bulk carriers after 2025. It will also be installed with an automated kite system Seawing, aimed to effectively utilise wind power and further cut shipping emissions.
Seawing is being developed by Airseas, an industrial firm spun off from aircraft manufacturer Airbus. K Line and Airseas have been co-operating on the technology’s application on bulk carriers after receiving approval in principle from Japanese classification society ClassNK last year.
Mol is targeting to commission its new LNG-fuelled Capesize bulk carrier in January 2025 under the charter deal with JFE Steel. The company has a plan to expand the LNG-powered vessels fleet to 90 by 2030. It is expected to commission its first LNG-fuelled ocean-going vessel in 2023.
The company is operating the LNG-fuelled tug Ishin and LNG-fuelled coastal coal carrier Isemirai for domestic operations.
Photo credit and source: Argus Media
Published: 21 July, 2021
Webinar will offer delegates insights on the prevention of operational issues when using VLSFOs, along with an update on biofuels and bunker fuel quality trends for 2021 and its forecast for the current year.
Heating VLSFOs to prevent cold flow issues causes issues related to distillate ageing, and there is a gentle balance to be maintained when handling the product.
Research into n-paraffin distribution of VLSFOs has shown that they not only differ from MGO, but significantly differ from each other as well, states bulletin.
Bunker Holding and Dan-Bunkering have decided not to appeal the city court ruling in the case where the companies were on trial for breaching EU sanctions against Syria, states USTC.
Poll shows market participants think Singapore’s future as a bunkering hub in the near term will be impacted most by growth in alternative bunker fuels and intensifying competition from other ports in Asia.
‘We will now take the necessary time to consider and evaluate the verdict and the premises of the verdict thoroughly before making any decision of whether to appeal to a higher court,’ informs company.