Alternative Fuels

Argus Media: Suppliers looking to drive bio-LNG bunkering growth

Although use of bio-LNG for bunkering is still in its early days, many firms and port authorities across Europe are planning new bio-LNG production plants or are planning to use bio-LNG as a bunker fuel.

Published

2 years ago

February 10, 2023

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Bio-LNG suppliers are looking to boost the availability of the fuel for bunkering over the coming years, with firms keen to lock in capacity as new environmental standards on maritime emissions kick in.

9 February 2023

The use of bio-LNG for marine bunkering purposes is still in its early days when compared with usage in the heavy-duty road sector, with the uptake of bio-LNG for vessel refuelling likely to be linked to the widespread use of biomethane in other sectors. But many firms and port authorities across Europe are planning new bio-LNG production plants or are planning to use bio-LNG as a bunkering fuel.

Finnish firm Gasum has plans to expand its bio-LNG bunkering presence in the Nordics and northern continental Europe over the next five years, maritime operations vice-president Jacob Granqvist said. The firm is looking to eventually run its Risavika 300,000 t/yr LNG production and bunkering facility in Norway solely on bio-LNG. Gasum first started producing bio-LNG in Finland in 2020, at its biogas plant in Turku. The firm's bio-LNG expansion is conjunctive to its aim of making 4TWh of biogas available to the market by 2025 through its own production and that of certified European partners.

But bio-LNG's higher price relative to LNG and other fuels — such as gasoil or diesel — has often been seen as a hurdle to development. This has left pricing methods for bio-LNG bunkering varied, Granqvist said. Some firms are seeking fixed pricing with premiums rather than indexation, as firms "don't want exposure of 10-years on bio-LNG molecules", Granqvist said. But the market is keen to "go green" as environmental targets "override price sensitivity", he added.

And new environmental regulations kicking in over the coming years mean that there is even more of an incentive to use bio-LNG as a bunkering fuel rather than standard LNG, he said. The inclusion of maritime shipping in the EU's emissions trading system will mean that shipowners have to pay for 40pc of their emissions from 2025, 70pc from 2026 and 100pc from 2027. But the use of LNG as a fuel in fleets will enable operators to compensate for emissions from dirtier, conventional vessels. The "compensation effect may even be higher once you start blending in bio-LNG", Granqvist says.

"Mixing in bio-LNG makes a lot of sense", according to Norwegian firm Kanfer Shipping's managing director, Stig Hagen. Kanfer is in conversations with the Suez Canal authorities on the potential of introducing bio-LNG at its planned LNG bunkering project at the canal.

Ammonia's future as a bunkering fuel less clear

The maritime sector is also looking into the use of ammonia as a fuel to cut down on emissions, but the costs are higher and availability is lacking.

Supply of ammonia must be increased before it can be widely adopted for use in different sectors, such as as a marine fuel, Columbia University's Center on Global Energy Policy said last month.

Granqvist is sceptical about using ammonia as a bunkering fuel, calling it a "lame excuse to avoid using LNG". There is "big risk" in ammonia, given that production and compatibility with vessels is still far off, he adds.

But some firms are planning to skip standard LNG as a bunkering fuel completely, instead moving straight to net-zero fuels. This could boost bio-LNG and ammonia consumption in the sector. Danish shipping firm Maersk said in 2021 that it is very concerned with emissions of the greenhouse gas methane from LNG. The firm will instead leapfrog to other alternative fuels, such as biodiesel, bio-methanol, e-methanol, lignin fuels, and green ammonia.

But many firms remain keen on ammonia. Among them, Japan's NYK aims to boost its ammonia bunkering presence and modify an LNG-powered tugboat to run on ammonia, while Japanese engineering firm IHI plans to convert LNG import terminals into fuel ammonia terminals to aid the ammonia supply chain. Kanfer reached an initial agreement with a major fertiliser firm last year for an ammonia bunkering vessel.

By Ellie Holbrook

Photo credit and source: Argus Media
Published: 10 February, 2023

LNG Bunkering

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Bunkering vessel “Hai Yang Shi You 302” supplied more than 10,000 cubic metres of LNG bunker fuel to containership “MSC Adya” at the Ningbo-Zhoushan Port port on 5 January.

Published

3 days ago

January 10, 2025

Admin

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Zhejiang Pilot Free Trade Zone Zhoushan Area on Wednesday (8 January) said Ningbo-Zhoushan Port successfully completed its first LNG bunkering operation for the year.

Bunkering vessel Hai Yang Shi You 302 supplied more than 10,000 cubic metres (m3) of LNG bunker fuel to containership MSC Adya at the port on 5 January.

Zhejiang Seaport International Trading, the bunker supplier for the operation, successfully obtained the Zhoushan Anchorage LNG bunkering licence in June 2024, extending refuelling services from dock to sea.

The company’s services cover Meishan, Chuanshan, Daxie and other port areas.

As China's first river-sea LNG transport and bunkering ship, Hai Yang Shi You is currently placed permanently at Ningbo Zhoushan Port, providing a variety of bunkering methods such as ship-to-ship and ship-to-shore.

Zhejiang Seaport International Trading will continue to expand the scope of bonded LNG bunkering operations and new alternative fuels such as green methanol, ammonia and biofuels in the Zhoushan Area.

Photo credit: Zhejiang Pilot Free Trade Zone Zhoushan Area
Published: 10 January, 2025

Nuclear

VARD and partners team up to explore nuclear propulsion for shipping

Project, which involves Knutsen Tankers and DNV, will evaluate fourth-generation nuclear reactor technologies for their viability in commercial shipping applications.

Published

3 days ago

January 10, 2025

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VARD and partners team up in project to explore nuclear propulsion for shipping

Norway-based shipbuilder VARD on Friday (3 January) said it has partnered with the Norwegian University of Science and Technology in Ålesund, Norway and other key stakeholders in the NuProShip I project, which explores nuclear propulsion for the maritime sector.

NuProShip, short for "Nuclear Propulsion in Shipping," will evaluate fourth-generation nuclear reactor technologies for their viability in commercial shipping applications.

In this project, an extensive assessment of 99 companies developing advanced reactor technologies led to the selection of three promising reactor types:

Kairos Power (USA): Fluoride high-temperature molten salt reactor using Tri-structural Isotropic (TRISO) fuel particles, designed for robust and efficient operation.
Ultrasafe (USA): Helium-cooled gas reactor, also employing TRISO fuel particles, known for their resilience and safety in extreme conditions.
Blykalla (Sweden): Lead-cooled reactor concept utilizing uranium oxide as fuel, offering high efficiency with advanced cooling mechanisms.

VARD said TRISO fuel particles, noted for their durability and containment properties, play a crucial role in two of these reactor types.

“TRISO technology in fact, is renowned as one of the most resilient nuclear fuel types available today,” it added.

Alongside VARD, the NuProShip project is supported by other partners, including DNV, the Norwegian Maritime Administration, ship owner Knutsen Tankers, and the Spanish nuclear consultancy IDOM.

VARD’s primary contribution involves integrating these reactor systems into various vessel types, assessing the technical challenges to enable the future commercial use of nuclear-powered ships.

Photo credit: VARD
Published: 10 January, 2025

Bunker Fuel

Singapore: KPI OceanConnect, partners deliver first renewable diesel to cruise industry

Delivery of bunker fuel from Neste was made at Singapore Cruise Terminal, with the fuel sourced from Vopak Penjuru Terminal and transported to a cruise ship via barge “Maple”, operated by Global Energy.

Published

4 days ago

January 9, 2025

Admin

Singapore: KPI OceanConnect, partners deliver first renewable diesel to cruise industry

Global provider of marine energy solutions KPI OceanConnect on Wednesday (8 January) said it partnered with Neste and Global Energy on the first successful delivery of renewable diesel, also known as HVO100, for the cruise industry in Singapore.

The landmark delivery of Neste MY Renewable Diesel™ took place in November 2024 and marked a significant milestone for the Asia-Pacific marine sector.

Neste MY Renewable Diesel™ is made from 100% renewable raw materials and is a direct replacement for fossil diesel, helping the industry meet its sustainability goals.

The use of this renewable diesel can result in up to 90% greenhouse gas (GHG) emissions reduction over its lifecycle compared to fossil diesel.

The fuel is a drop-in solution and is suitable for all diesel-powered engines without the need for additional investment or modification to engines or fuel infrastructure.

The delivery of renewable diesel from Neste was made at the Singapore Cruise Terminal, with the fuel sourced from Vopak Penjuru Terminal and transported to the cruise ship via bunker barge Maple, operated by Global Energy.

KPI OceanConnect facilitated the successful delivery of the renewable diesel, working closely with the vessel's technical team to ensure engine compliance. KPI OceanConnect collaborated with Neste to source the fuel and with Global Energy for operational agreements in Singapore waters.

Ee Pin Lee, Head of Commercial APAC, Renewable Products at Neste, said: "This first supply of Neste MY Renewable Diesel to the marine sector in Asia-Pacific is a significant milestone and demonstrates the versatility of the product across a wide range of applications where it can replace fossil diesel. It is an effective solution for enabling the marine sector to be more sustainable."

Chow Munee, Group Business Manager, Global Energy, added: “Partnering with Neste and KPI OceanConnect to supply renewable diesel to the marine sector in Singapore is an important step in helping our clients reduce their environmental impact. By providing seamless and reliable delivery of HVO, we are supporting the industry’s transition without compromising operational efficiency. We’re proud to play a role in driving these crucial efforts within the maritime sector.”

Jesper Sørensen, Head of Alternative Fuels and Carbon Markets at KPI OceanConnect, said: “We are proud to be industry first movers in sourcing and delivering HVO for our clients, helping them reduce their carbon footprint and achieve their environmental goals. By working closely with Neste and Global Energy, we were able to offer high-quality biofuel to our client, laying the groundwork for further fuel uptake and decarbonisation progress. This successful delivery is a testament to how partnerships can help advance the industry’s green transition.”

Photo credit: KPI OceanConnect
Published: 9 January, 2025