Business

Argus Media viewpoint: Biofuel bunkering in Singapore set to build

Market participants expect biofuel bunkering will transition from mainly being used in trials and pilot studies to actual market pick-up and maturation in 2023, says Sammy Six.

Published

2 years ago

December 21, 2022

Admin

It has been all about biofuel bunkering in the world's largest bunkering hub of Singapore in 2022, with the fuel's rapid uptake widely expected to continue in 2023.

20 December 2022

Back in October senior minister of state for transport Chee Hong Tat said at the Singapore International Bunkering Conference and Exhibition (Sibcon) that the city-state has supplied about 70,000t of biofuels to ocean-going vessels across more than 40 biofuel bunkering operations so far in 2022.

To put this in perspective, biofuel bunkering sales had already outpaced total LNG bunker consumption of 50,000t in 2021, the most mature alternative bunker fuel of choice.

In Singapore, a maximum of 24pc of biofuels is allowed in a bunker blend, which is also called B24. The remaining 76pc is made up of very-low sulphur fuel oil. It remains to be seen whether this share in the blend can and will increase, as is already the case in Europe and North America.

Vitol and Chevron are the two leading suppliers of B24 at the port of Singapore, with Vitol alone accounting for about half of the quantities sold.

Large international shipping companies such as NYK, Oldendorff, CMA CGM, K-Line and Cosco, among others, started trialling B24 onboard their vessels for ocean-going journeys in 2022 without any complications.

Biofuels are a popular choice for shippers looking to decarbonise their fleet in order to meet the International Maritime Organization's goal to reduce greenhouse gas emissions from shipping.

This is because biofuel blends are a plug-and-play solution that is widely available and do not need engine modifications.

Singapore's Maritime and Port Authority in October 2022 developed a provisional national quality standard for marine biofuels, as well as a framework laying down conditions for biofuel supply for licensed bunker fuel suppliers, to boost the pick-up of biofuels bunkering.

A supporting regulatory framework like this will further stimulate marine biofuel consumption in Singapore, as the industry awaits a global ISO standard.

Multi-fuel future

Market participants expect that biofuel bunkering will transition from mainly being used in trials and pilot studies to actual market pick-up and maturation in 2023.

Already some B24 spot trading is taking place, although most of the volumes sold are under long-term contracts as reported to Argus.

Other low- or zero-carbon bunker fuels such as ammonia, methanol and hydrogen are all potential candidates in a multi-fuel future as well. All of these have, similar to biofuels, positive and negative characteristics relative to conventional marine fuels.

The biofuels used in a B24 blend are currently used cooking oil methyl ester (Ucome), but there are questions regarding the sustainability of future biofuel supplies. Hence, it is possible that the growth in biofuels will be capped by the emergence of competition from other fuels. Already, shipping companies and fuel suppliers are working together to incept supply chains for green ammonia and methanol bunkering, as well as hydrogen, in key hubs such as Singapore and South Korea.

For now it looks like biofuels in Singapore are destined to capture an increasing share of the bunkering fuel mix at least in the short to medium term, with 2023 poised to be a critical year for B24.

By Sammy Six

Photo credit and source: Argus Media
Published: 21 December, 2022

Winding up

Singapore: Liquidator of Vanda Marine Services issues notice of dividend

First and final dividend of company is payable from 23 January at Rock Stevenson Pte Ltd, 8 Burn Road, Trivex #16-12, Singapore 369977, according to Government Gazette notice.

Published

4 hours ago

January 23, 2025

Admin

A notice was published in the Government Gazette on Thursday (22 January) regarding the first and final dividend to creditors of Vanda Marine Services Pte Ltd.

The following are details of the notice of dividend of the company:

Name of Company : Vanda Marine Services Pte Ltd(In Creditors’ Voluntary Liquidation)

Unique Entity No. / Registration No. : 201209660C

Address of Registered Office : 8 Burn Road, Trivex #16-12, Singapore 369977

Amount per centum : 23 per centum of all admitted ordinary claims

First and Final or otherwise : First and Final

When payable : 23 January 2025 onwards

Where payable : c/o Rock Stevenson Pte Ltd, 8 Burn Road, Trivex #16-12, Singapore 369977

Manifold Times previously reported several resolutions for Vanda Marine Services, including winding up the company voluntarily, were passed during an extraordinary meeting in March last year.

Photo credit: steve pb from Pixabay
Published: 23 January, 2025

Methanol

China launches first simulation training platform for methanol bunkering operations

Through the real-life simulation, the platform helps ship operators improve their safety management and emergency response capabilities, improving the development of green shipping technologies.

Published

4 hours ago

January 23, 2025

Admin

China launched its first training platform to simulate methanol bunkering operations at Putuo District, Zhoushan on 15 January.

The Methanol Bunkering System Simulation Training Platform V1.0 was created to fill technical gaps in domestic methanol bunkering training and exercises, in light of the growing demand and popularity for methanol in the shipping industry.

Through the real-life simulation, the platform helps ship operators improve their safety management and emergency response capabilities, improving the development of green shipping technologies.

The platform was jointly developed by Zhejiang Ocean-U New Energy System Engineering and Zhejiang Ocean University.

At the press conference , Zhejiang Ocean-U New Energy System Engineering successfully signed its first purchase agreement with Seacon Ships Management (Zhejiang), making Seacon the first customer to purchase the platform service.

Wang Guofeng, chairman of Seacon, said that the platform has great potential in improving crew operating efficiency and safety, and he looks forward to deeper cooperation with Zhejiang Ocean-U New Energy System Engineering in the future.

Professor Lu Jinshu, Vice President of Zhejiang Ocean University, said they will continuously improve the platform to contribute more in the field of green shipping solutions to the industry.

Photo credit: Manifold Times
Published: 23 January, 2025

Hydrogen

Klaipėda Port launches Lithuania’s first hydrogen-powered vessel

Tanker’s power system, which will consist of two electric motors powered by 2,000 kWh batteries and a hydrogen fuel cell system, will enable it to operate for up to 36 hours without additional power charging.

Published

4 hours ago

January 23, 2025

Admin

Klaipėda Port launches Lithuania’s first hydrogen-powered vessel

Klaipėda State Seaport Authority on Wednesday (22 January) said the first ever green hydrogen and electricity-powered ship in Lithuania has been moved from shipyard into water.

Leaving no trace on the environment, it will clean other vessels entering the port, accepting waste from them.

According to the current rules, vessels are obliged to hand over the waste they produce when they arrive and before they leave Klaipėda Port. The Seaport Authority was entrusted with the collection of the waste, and the company decided to use modern and environmentally friendly equipment to further improve the quality of the ship waste collection service.

The tanker’s main function is to collect storm water, sewage, sludge and garbage, as well as to ensure efficient waste management. The ship will be equipped with special tanks and a modern rainwater treatment plant that will allow the treated water to be transferred to the city’s sewage treatment plants. The tanker will be ready to work around the clock and collect up to 400 cubic metres of liquid waste.

The tanker is 42 metres long and 10 metres wide. The ship’s power system will consist of two electric motors powered by 2,000 kWh batteries and a hydrogen fuel cell system. Depending on the intensity of the work, the tanker will be able to operate in the port of Klaipėda for up to 36 hours without additional power charging.

This ship building project with a total value of EUR 12 million (USD 12.5 million) has been commissioned by the Port Authority and is being built by West Baltic Shipyard together with Baltic Workboats under a joint operating agreement.

“We have not only launched a tanker, but also a new approach to port operations – cleaner, smarter and more environmentally friendly. This first ever hydrogen and electricity-powered ship is not only an innovative technological solution, but also an important step in strengthening Lithuania’s image as a modern maritime nation,” said Algis Latakas, Director General of Klaipėda State Seaport Authority.

“At the moment, the tanker is getting used to the seaport water, so to speak, and at the end of the year we expect it to start its important mission of taking care of the clean seaport environment. Such a decision will not leave a footprint on nature, but it will certainly leave a strong mark on our path to a greener future.”

In June last year, a symbolic keel-laying ceremony at the West Baltic Shipyard of the West Baltic Shipyard Group marked the start of the ship’s construction. To date, the hull has been fabricated and painted, with piping, valves, coolers, shaft lines, rudder feathers, heat and fire insulation installed.

Once the tanker is moved into the water, the engine room equipment will be installed, the interior of the wheelhouse will be redecorated, the electrical wiring and the main electrical engines will be installed, the hydrogen system will be installed and other work necessary for the operation of the ship will be carried out.

Photo credit: Klaipėda State Seaport Authority
Published: 23 January, 2025