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Argus Media: Northwest Europe biofuel bunker demand seen steady in 2024

Demand for biofuels for bunkering in northwest Europe could remain steady near current price levels in 2024, even with EU set to begin charging shipowners for 40% of their CO2 emissions beginning 2024.

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Demand for biofuels for bunkering in northwest Europe could remain steady near current price levels in 2024, even with the EU set to begin charging shipowners for 40pc of their CO2 emissions.

30 August 2023

Ships traveling in EU territorial waters will have to pay for 40pc of their CO2-equivalent emissions beginning in 2024. Prices of biofuels for bunkering remain at a premium to conventional marine fuel — very low-sulphur fuel oil (VLSFO) — even with the added cost of CO2. B30, a blend of advanced fatty acid methyl ester (Fame) and VLSFO, and B30, a blend of used cooking oil methyl esters (Ucome) and VLSFO, were pegged at $191/t and $291/t, respectively, premiums to the VLSFO average in August, Argus data showed. EU-traded CO2 averaged at $92.5/t. With the added 40pc emissions CO2 cost, the premium was pegged at $156/t for advanced Fame B30 blend and at $256/t for Ucome B30 blend (see chart).

Container shipping companies — including Maersk, Hapag-Lloyd, Ocean Network Express, CMA-CGM, Matson and Evergreen — have pledged net zero emissions by 2050. They have been actively exploring the use of biofuels and passing the extra cost to their customers in the form of higher freight rates. Their customers represent some of the largest retailers in the world, including Amazon, Ikea, Michelin, Patagonia, and Unilever, among others. But the number of container ship companies' customers able and willing to pay more for cleaner freight might have peaked.

Beyond container shipping companies, bulk carriers and tanker owners are unlikely to embrace biofuels for bunkering on a larger scale just yet. Their customers and shareholders are not as environmentally driven.

Biofuel blends for sale as marine fuel accounted for 6.9pc of Rotterdam's marine fuel demand in the second quarter of 2023, port of Rotterdam data showed. Their share of Rotterdam bunker demand has ranged from 2.0-9.3pc from the first quarter of 2021 to the first quarter of 2023. In 2024, their share of demand might not surpass 10pc, if northwest Europe Fame and Ucome prices remain steady or increase relative to VLSFO.

Another factor that could keep biofuels for bunker demand steady are Netherlands biotickets for advanced Fame for bunkering. The tickets, issued by the Dutch government, shave off about 40-60pc of the outright price of advanced Fame.

The use of Netherlands biotickets for bunkering are revisited by the government every year. Next year, the government could reduce the number of biotickets for bunkering or scrap them altogether.

By Stefka Wechsler

Argus Media: Northwest Europe biofuel bunker demand seen steady in 2024

ARA B30 less VLSFO plus 40pc CO2 cost $/t

 

Photo credit and source: Argus Media
Published: 4 September, 2023

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Newbuilding

Singapore: EPS orders ammonia, LNG dual-fuel vessels from China

EPS signed one contract for a series of ammonia dual-fuel bulk carriers with CSSC Beihai Shipbuilding and another for a series of LNG dual-fuel oil tankers with CSSC Guangzhou Shipbuilding International.

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Singapore-based Eastern Pacific Shipping (EPS) on Wednesday (28 February) said it signed two new contract orders in a signing ceremony in Shanghai, one for a series of ammonia dual-fuel bulk carriers with CSSC Beihai Shipbuilding and another for a series of LNG dual-fuel oil tankers with CSSC Guangzhou Shipbuilding International. 

The contracts signed cover four 210,000 dwt ammonia dual-fuel bulk carriers and two 111,000 dwt LNG dual-fuel LR2 oil tankers, expanding our fleet of green vessels on water. 

“These are pivotal for EPS, testament to our continued commitment towards the decarbonisation of shipping,” EPS said in a social media post.

Manifold Times recently reported EPS signing a contract for its first ever wind-assisted propulsion system, partnering with bound4blue to install three 22-metre eSAILs® onboard the Pacific Sentinel

The turnkey ‘suction sail’ technology, which drags air across an aerodynamic surface to generate exceptional propulsive efficiency, will be fitted later this year, helping the 183-metre, 50,000 DWT oil and chemical tanker reduce overall energy consumption by approximately 10%, depending on vessel routing.

Related: Singapore: EPS orders its first wind-assisted propulsion system for tanker

 

Photo credit: Eastern Pacific Shipping
Published: 1 March 2024

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LNG Bunkering

Malaysia: Port of Tanjung Pelepas completes first LNG bunkering operation

Landmark event involved the CMA CGM Monaco, a 14,024 TEUs containership operated by French shipping giant CMA CGM.

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Port of Tanjung Pelepas Sdn Bhd (PTP), a joint venture between MMC Group and APM Terminals, on Wednesday (28 February) announced a significant milestone with the successful completion of its first Liquefied Natural Gas (LNG) bunkering operation. 

The landmark event involved the CMA CGM Monaco, a 14,024 TEUs (Twenty-foot Equivalent Units) capacity containership operated by French shipping giant, CMA CGM.

Tan Sri Che Khalib Mohamad Noh, Chairman of PTP in a statement remarked this latest milestone demonstrates PTP’s commitment to continuously enhance its competitive advantages in an increasingly competitive global market.

“The successful completion of our first LNG bunkering operation also underscores our unwavering commitment to sustainability and environmental leadership. We are proud to partner with Petronas Trading Corporation Sendirian Berhad (PETCO) and CMA CGM on this initiative and showcase PTP’s capabilities as a leading facilitator of clean and efficient maritime operations.”

“This milestone paves the way for further growth in LNG bunkering at PTP, contributing significantly to the decarbonisation of the maritime industry.”

Commenting on this achievement, Mark Hardiman, Chief Executive Officer of PTP stated this latest milestone further highlights PTP’s position as the largest transshipment hub terminal in Malaysia.

“In preparation for the LNG bunkering operation, PTP worked closely since March 2022 with PETCO and CMA CGM, as well as with various other related government agencies to organise table-top exercises (TTX) and workshops, before carrying out the deployment exercise.”

“The success of the bunkering operation is a result of the seamless collaboration and preparations involving rigorous safety procedures through in-depth operational and risk assessments, modelling, and validation. We thank PETCO, CMA CGM all other involved parties for their joint efforts in operationalising the bunkering capability and we welcome partners to work with us to accelerate maritime decarbonisation,” said Hardiman.

Port of Tanjung Pelepas (PTP) is Malaysia’s largest transshipment hub with the capacity to handle 13 million TEUs annually. The port delivers reliable, efficient, and advanced services to major shipping lines and box operators, providing shippers in Malaysia and abroad with extensive connectivity to the global market. PTP is currently ranked 15th among the world top container ports.

 

Photo credit: Port of Tanjung Pelepas
Published: 1 March 2024

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Alternative Fuels

Wallenius Wilhelmsen to order four additional methanol DF PCTCs

Newbuilds will also be ammonia-ready and able to be converted as soon as ammonia becomes available in a safe and secure way.

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Wallenius Wilhelmsen PCTC order

Roll-on/roll-off (Ro-Ro) shipping company Wallenius Wilhelmsen on Tuesday (27 February) declared options to build four additional next-generation Shaper Class pure car and truck carrier (PCTC) vessels.

The 9,300 CEU methanol dual fuel vessels can utilise alternative fuel sources, such as methanol, upon delivery. They will also be ammonia-ready and able to be converted as soon as ammonia becomes available in a safe and secure way.

“Together with our customers we are committed to further shaping our industry and accelerating towards net zero. These new vessels are a vital part of that journey,” says Xavier Leroi, EVP & COO Shipping Services.

This latest commitment brings the total number of Shaper Class vessels currently on order with Jinling Shipyard (Jiangsu) to eight. Wallenius Wilhelmsen also retains further options.

The first of the Shaper Class vessels already ordered are expected to be delivered in the second half of 2026. The four additional vessels under the declared options will be delivered between May and November 2027.

 

Photo credit: Wallenius Wilhelmsen
Published: 1 March 2024

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