Alternative Fuels

Argus Media Q&A: Aviation may pull feeds away from marine, says BV

Published

8 months ago

July 23, 2024

Admin

Biofuel feedstocks could be routed away from marine fuels to meet demand from the aviation sector if the latter is willing to pay higher prices associated with sustainable aviation fuel (SAF), Bureau Veritas (BV) Marine & Offshore's global market leader for sustainable shipping Julien Boulland told Argus. Edited highlights follow:

19 July 2024

Marine biodiesel has been the largest alternative fuel uptake, with over 1mn t sold in Rotterdam and Singapore last year. But with Argus assessments showing premiums above $225/t to VLSFO dob ARA, how do you see marine biodiesel demand in the medium- to long-term?

Shipowners and ship operators have to run an individual cost-analysis on whether the premiums could be offset by potential savings under EU emissions trading system (ETS) and FuelEU Maritime regulations, as well as any future regulations such as the International Maritime Organisation (IMO) economic pricing mechanism.

In terms of emissions, biofuels still emit CO2 on a tank-to-wake basis, but less on a well-to-wake basis compared to their fossil equivalents. This will also vary depending on the feedstock for the biofuel as well as the production process.

Under the current IMO regulations for energy efficiency, including the Ship Energy Management Plan (SEEMP) and its requirements for fuel reporting (DCS), there might be some indirect commercial benefits for owners, too. For example, a better CII (Carbon Intensity Indicator) score may make a vessel more appealing to charterers and help its owner secure more favourable rates.

There are also other factors to consider, such as Scope 3 emissions rights, which can influence demand, as we currently see from voluntary demand from cargo owners seeking those documents.

But this will also have a geographic impact on demand, as larger container liner companies usually utilise the east-west route and they might prefer to opt for bunkering the marine biodiesel blend in Singapore due to lower prices.

What are the risks associated with bunkering marine biodiesel in relation to conventional ship engines? How significant is the recent FOBAS report that implied a correlation between the use of "unidentified" biofuels and engine pump injector damage?

We have supported our shipowner clients in numerous pilots to trial biofuels such as fatty acid methyl ester (Fame) and hydrotreated vegetable oil (HVO) in variable blends.

Overall, these trials have gone smoothly, but we have learned a few things along the way.

Firstly, engines do not need to be modified, but since biofuels have slightly different physical properties, it is necessary to find the right engine adjustments. A very good knowledge of the fuel properties is key in determining the right adjustments, and the new revision of ISO 8217 on marine fuel specifications is crucial in supporting this process. Another key finding is the importance of receiving full information on fuel characteristics from the supplier. Finally, BV plays a key role in ensuring full fuel certification on several aspects, including sustainability and physical properties.

Used cooking oil (UCO) can also feed into SAF and with potentially greater refining margins. Do you think some feedstocks will be pulled away from marine?

When it comes to methanol, we believed marine would take up more of the feedstock compared with the chemicals industry due to greater willingness to pay larger premiums.

But with biofuels, it seems to be the other way around where aviation could end up pulling biofuel feedstocks away from maritime. In terms of fuel consumption, the marine and aviation industries are comparable but if aviation are willing to pay more, then it will likely get more of the feedstocks required to produce SAF.

What are the implications of the new ISO specifications, what are the key takeaways for marine biodiesel uptake?

More has to be done, but now we have parameters for assessing biofuel blend specifications.

It was very well accepted by the industry, and now operators and shipowners have a standard to rely on.

But it doesn't resolve the question around feedstock cross-industry competition. However, it does also open the door for off-spec Fame residue blends to become ISO-certified — depending on further testing.

With IMO aiming for "global regulations for a global market", how do you see conflicts between different regulations affecting the market?

We are closely following the IMO development process for a global economic pricing mechanism.

IMO has assigned a working group of technical experts to look at this mechanism from an apolitical perspective.

In terms of potential regulatory conflicts, we have the example of the Netherlands, where the Dutch emission authority requires the delivery of Proof of Sustainability (PoS) certificates for applying to the scheme of Dutch renewable tickets (HBE-G) which can be traded, but this PoS cannot be used for other purposes, such as the EU ETS. To circumvent this hiccup, we may see the development of new digital certificates, such as an accompanying ISCC-certified Proof of Compliance (PoC).

By Hussein Al-Khalisy

Photo credit and source: Argus Media
Published: 23 July, 2024

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Alternative Fuels

Singapore: MPA issues circular on resolutions adopted at IMO MSC 109

New circular informs shipping community of the resolutions, including on use of ammonia cargo as bunker fuel, and urges the shipping community to prepare for the implementation of these resolutions.

Published

14 hours ago

March 18, 2025

Admin

The Maritime and Port Authority of Singapore (MPA) on Monday (17 March) issued Shipping Circular No. 2 of 2025 regarding resolutions adopted by the 109th session of the Maritime Safety Committee (MSC 109) of the International Maritime Organization (IMO), which was held from 2 to 6 December 2024:

This circular informs the shipping community of the resolutions adopted by MSC 109 and urges the shipping community to prepare for the implementation of these resolutions.

MSC 109 adopted the following mandatory resolutions:

Resolution MSC.566(109) – Amendments to the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code)

This resolution adopts amendments to Chapter 16 of the IGC Code, mainly to allow the use of ammonia cargo as fuel. The amendments will enter into force on 01 July 2026 and will be given effect through the Merchant Shipping (Safety Convention) Regulations.

Resolution MSC.567(109) – Amendments to the International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code)

This resolution adopts amendments to IGF Code regarding ship design and arrangements; general pipe design; safety functions of the gas supply system; fire protection; hazardous area zones; and ventilation requirements. The amendments will enter into force on 01 January 2028 and will be given effect through the Merchant Shipping (Safety Convention) Regulations.

MSC 109 also adopted the following resolutions:

Resolution MSC.568(109) – Amendments to the Revised recommendation on testing of life-saving appliances (resolution MSC.81(70))

This resolution adopts amendments to Part 1- Prototype Test for Life-saving Appliances, for self-righting test requirements of totally enclosed lifeboats, under paragraph 6.14.1.1 of the Revised recommendation on testing of life-saving appliances (resolution MSC.81(70)).

Resolution MSC.569(109) – Performance standards for the reception of maritime safety information and search and rescue related information by MF and HF digital navigational data (NAVDAT) system

This resolution adopts the Performance standards for the reception of maritime safety information and search and rescue related information by MF and HF digital NAVDAT system.

Resolution MSC.509(105)/REV.1 – Provision of radio services for the Global Maritime Distress and Safety System (GMDSS)

This resolution adopts the revised Recommendation on provision of radio services for the GMDSS, the Criteria for use when providing shore-based digital selective calling (DSC) facilities for use in the GMDSS, the Criteria for establishing GMDSS sea areas, the Criteria for use when providing a NAVTEX service and the Criteria for use when providing a NAVDAT service, set out in annexes 1 to 5, respectively, to the resolution. This resolution revokes resolution MSC.509(105).

Resolution MSC.570(109) – Performance standards for a universal shipborne Automatic Identification System (AIS)

This resolution adopts the revised Performance standards for a universal shipborne AIS, recognising the need for measures to prevent unauthorised entry or tampering of the ship's identity information in shipborne AIS.

Any queries relating to this circular should be directed to MPA Shipping Division via email at [email protected].

Photo credit: Maritime and Port Authority of Singapore
Published: 18 March, 2025

Alternative Fuels

AAL Shipping names methanol-ready multipurpose heavy lift vessel in China

Singapore-based AAL Shipping says it held a naming ceremony for “AAL Dubai” – a multipurpose heavy lift vessel that is methanol-ready – at CSSC Huangpu-Wenchong Shipyard in Guangzhou.

Published

15 hours ago

March 18, 2025

Admin

AAL Shipping names methanol-ready multipurpose heavy lift vessel in China

Singapore-headquartered project heavy lift carrier AAL Shipping (AAL) on Thursday (13 March) said it held a formal naming ceremony for its fifth Super B-Class vessel, AAL Dubai.

The 32,000 dwt AAL Dubai – a multipurpose heavy lift vessel that is methanol-ready – was officially named on March 12 at the CSSC Huangpu-Wenchong Shipyard in Guangzhou, China.

The AAL Dubai is engineered to transport a vast array of cargo, including heavy lift project equipment, breakbulk, and dry bulk, all on a single voyage. With a combined lifting capacity of 700 tonnes, this vessel is designed to offer high efficiency, cargo flexibility, and economies of scale to shippers worldwide.

The vessel will now embark on its maiden voyage, joining sister vessels AAL Limassol, AAL Hamburg, AAL Houston, and AAL Antwerp in serving project cargo customers across Asia, Europe, the Middle East, and the Americas.

“We are now over the halfway mark with our Super B-Class deliveries, and those already in service are exceeding our expectations,” said Liew Teck Liong, Chief Financial Officer at AAL.

“With these vessels, we have achieved both company and industry firsts, and we look forward to redefining what a heavy lift, multipurpose vessel can accomplish as we deploy them for complex cargo challenges.”

Later this year, AAL will take delivery of the AAL Dammam, which will be shortly followed by the AAL Newcastle and AAL Mumbai that have an increased maximum heavy lift capability of 800 tonnes.

Photo credit: AAL Shipping
Published: 18 March, 2025

LNG Bunkering

Titan completes first LNG and bio-LNG bunkering op to MOL under new term contract

Titan’s LNG bunkering vessel “Alice Cosulich” delivered 500 mt of bio-LNG and 400 mt of conventional LNG to vehicle carrier “Celeste Ace” during a SIMOPS bunkering in Port of Zeebrugge.

Published

15 hours ago

March 18, 2025

Admin

Titan completes first LNG and bio-LNG bunkering op to MOL under new term contract

Titan Clean Fuels (Titan) on Monday (17 March) said it has completed the first LNG and liquefied biomethane (bio-LNG) bunkering operation of a new multi-delivery contract for Mitsui O.S.K. Lines’ vehicle carrier fleet.

On 16 March, Titan’s Alice Cosulich LNG bunkering vessel delivered 500 metric tonnes (mt) of bio-LNG and 400 mt of conventional LNG to the Celeste Ace vehicle carrier. The simultaneous operation (SIMOPS) bunkering took place in the Port of Zeebrugge’s International Car Operators (ICO) terminal.

Titan’s delivery of ISCC-EU-certified mass-balanced bio-LNG marks the first of a series of bio-LNG deliveries to the Japanese shipping company. The bio-LNG was produced using waste and residue, which reduces GHG emissions by up to 100% compared to marine diesel on a well-to-wake basis. LNG, bio-LNG, and renewable hydrogen-derived e-methane can be blended at any ratio and ‘dropped into’ existing LNG bunkering infrastructure with little to no modification.

Caspar Gooren, Commercial Director of Renewable Fuels at Titan, said: “This bunkering highlights the growing role of bio-LNG in decarbonizing international shipping today. With bio-LNG availability expanding, its deep decarbonization potential, and increasing commercial viability, the LNG pathway offers practical solutions for shipowners and operators. Moreover, with a global maritime leader like MOL putting its commercial weight behind bio-LNG, this is an exciting time for the clean fuels transition.”

Yoshikazu Urushitani, Marine Fuel GX Division General Manager at MOL, said: “We are exploring the use of ammonia and hydrogen fuels as part of our strategy to adopt clean alternative fuels, while moving to expand the use of LNG-fueled vessels and more quickly achieve a low-carbon society. We will also be early adopters of bio-LNG and synthetic LNG. Partnering with Titan, we will start using bio-LNG to lead the shipping industry in the transition to clean alternative fuels. We remain committed to adopting clean fuels to reach net zero GHG emissions by 2050.”

MOL currently operates five LNG-fuelled vehicle carriers and will have six more delivered by the middle of 2025.

Photo credit: Titan
Published: 18 March, 2025