Alternative Fuels

Argus Media Q&A: Bunker One to test bio-bunker B7 blend

Bunker One Brazil chief executive Flavio Ribeiro shares his outlook on the opportunity for Brazil to become a global biodiesel supplier for the shipping industry.

Published

3 years ago

January 31, 2022

Admin

Global bunker fuel trading company Bunker One is gearing up to test biodiesel blends in marine fuels in Brazil. In an interview with Argus, Bunker One Brazil chief executive Flavio Ribeiro shared his outlook on the opportunity for Brazil to become a global biodiesel supplier for the shipping industry:

What role can biodiesel play in decarbonizing the marine fuel industry?

Brazilian biodiesel could play a relevant role in reducing emissions in the shipping industry. We are major soybean producers and we are the largest exporter. We have the means to produce more biodiesel. While many in the fuel industry argue that biodiesel blends increase costs, we see it differently. With more demand for biodiesel, production will increase. There is untapped potential. We work in an industry that has massive amounts of fuel. One vessel consumes more fuel in a month than the average filling station. The shipping industry is focused on reducing emissions and Brazil has surplus capacity for biodiesel production. As part of the largest conglomerate in this industry in the world, we see potential.

When does Bunker One plan to begin its tests with biodiesel blends?

The test will begin shortly with our Rio barge operations and will be conducted by the Federal University of Rio Grande do Norte state. We have been approached by other companies interested in testing the fuel in their vessels. But we think this is unnecessary, because we are convinced that the results will be positive. Tests have been done in the US and Denmark. ISO (International Standardization Organization) has approved blends of up to 7pc for marine fuel. We are conducting the tests to spark interest in biodiesel blends. The tests will also allow the government and regulatory agencies to create proper regulations.

How could biodiesel contribute to lower emissions in the bunker fuel market?

This is part of our broader global agenda to reduce emissions by 2050. It is important to try new technologies, but biodiesel blends are drop-in. It is possible to use existing engines, which makes it much easier to adopt. Although ISO already allows 7pc biodiesel in marine diesel, there are still regulatory issues that need to be resolved by the IMO (International Maritime Organization). The IMO has certain regulations for NOx emissions from fossil fuels. These regulations need to be adjusted to stipulate a NOx cap for bio-blend and fossil fuels. We are hoping that the Brazilian government will use its role on the IMO board to resolve this issue. Once this resolution is fixed, countries all over the world will be able to certify the bio-blend.

How much demand does Bunker One see for biodiesel bunker-fuel blends?

The potential is at least 8-10mn metric tons per year. That is more biodiesel than Brazil currently produces per year. The potential is massive, even if we stick to the 7pc limit. We are focused on 7pc now, but down the road, we could push for a higher blend.

Would subsidies be necessary to implement a B7 blend? Would a blend result in higher fuel costs?

We believe the government needs to pave the way for this program to develop, but not to subsidize its use. With the blend, biodiesel production would increase, which would help lower prices. Of course, nobody wants to pay more for fuel, but the market is pushing for actions to reduce emissions and this comes at a cost. Companies will need to decide how they are going to cover the costs of lowering emissions.

Is the Brazilian government on board with the biodiesel blend project?

We have presented this to (mines and energy) minister (Bento Albuquerque), to the (hydrocarbons regulator) ANP and to ports regulator Antaq. All of them are on board for this research. We need them to work with the IMO to change the regulations. Even if the ANP creates B7 regulations, it could limit sales, because international ships could be prohibited from using the fuel if it is not regulated by the IMO. As the president of the Brazilian Bunkering Association, I am working to create awareness and to push for regulatory changes.

Would bio-bunker B7 potentially compete with LNG bunkering?

Bio-bunker B7 is a drop-in fuel – it uses the same engine and same tanks. To switch to LNG, ships need new tanks, new engines and new import infrastructure. LNG is an option for some global shipping lines, but for general shipping – where ships go where the freight is – B7 offers more flexibility.

Is Bunker One looking to blend its own 7pc biodiesel, or will it buy the finished 7pc biodiesel from local suppliers?

For this project, we have a special permit to buy B100 from producers and will blend it ourselves. Once the blended product is regulated, this process can be done by fuel distributors. There is a lot of interest from the biodiesel industry to move ahead with this process and many potential suppliers have already contacted us.

Photo credit and source: Argus Media
Published: 31 January, 2022

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

3 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

3 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

3 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