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Alternative Fuels

BIMCO Bulletin: The promise and challenge of future fuels

Respondents from BIMCO, the Smart Green Shipping Alliance and Ardmore Shipping share their opinions on ammonia and hydrogen as bunker fuels.
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The following article written by Samira Nadkarni, Journalist and maritime content creator, was published as part of the June edition of BIMCO’s Bulletin and shared with Singapore bunkering publication Manifold Times:

The World Bank’s recent publication of new research identifies ammonia and hydrogen as the two fuels that are “the most promising zero-carbon bunker fuels for shipping at present”. Respondents from BIMCO, the Smart Green Shipping Alliance and Ardmore Shipping share their opinions on the subject.

The report – The Potential of Zero-Carbon Bunker Fuels in Developing Countries – was released on 15 April 2021 and suggests that ammonia and hydrogen are the most promising for the maritime industry as zero-carbon bunker fuels. This is on the basis of their scalable nature and cost-competitiveness in comparison to other biofuel or synthetic carbon-based options. The report says these fuels are perceived as having “the most advantageous balance of favourable features due to their lifecycle GHG emissions, broader environmental factors, scalability, economics, and technical and safety implications”.

This prediction seems borne out by the joint venture “e1 Marine”, formed by Ardmore Shipping, Element 1 Corp, and Maritime Partners LLC in March 2021. The planned technology mixes methanol and water into high-purity, low-pressure hydrogen “on demand” to provide the necessary fuel source for low-temperature polymer electrolyte membrane fuel cells (PEM fuel cells).

“The units are modular and are therefore scalable to suit a broad range of applications. They are suitable for both the retrofit and newbuild market as a propulsion plant for smaller inland/coastal waterways or electrical generation on board deep-sea vessels or port terminals,” says Mark Cameron, the Chief Operating Officer of Ardmore Shipping. The technology is already going through type approval with a classification society, following which e1 Marine hopes to deploy it across a broad range of maritime applications.

Lars Robert Pedersen, the Deputy Secretary General at BIMCO, says that although there is a global shift towards a future hydrogen-based fuel economy, this would still have its challenges from a safety and economic perspective. Given the extreme volatility of hydrogen and the difficulty involved in its production and safe storage, there currently remains an associated risk.

At this point, much of the technology in question is still in its early stages, with the maritime industry acknowledging that engines can run on hydrogen and ammonia, but without proven trials in large engines. In addition, Pedersen notes that this is not merely a case of ensuring availability of fuels themselves, but also that the regulations governing shipbuilding will need to be adapted to accommodate this technology to ensure it is in line with the necessary safety standards for seafarers.

Underlying challenges to implementation

Diane Gilpin, the founder and CEO of Smart Green Shipping Alliance, says while the development of alternative zero-emission fuels are a priority, they cannot be seen as a complete solution.

“Substituting fossil fuels for zero emission ones that are going to be at least three times more expensive, of lower energy density, tied to volatile commodity markets and not available for many years at trillions of dollars cost to land-based, domestic jurisdictions, only means emissions from shipping will continue to rise,” she predicts.

Like Gilpin, Pedersen points to the economies of fuel production, distribution, and its associated machinery.

“The maritime industry is in a good place – we know what to do – but the big question is whether the world can deliver the sustainable fuels we need,” he says, pointing to the fact that traditional fuels are still the mainstay, not only in shipping but also in other global industries. Moreover, other global industries are also competing for green fuels; that suggests further economies of scale are likely to be a factor.

A looming question remains about how the ammonia and hydrogen intended for large-scale use in the maritime industry would be produced, and if this means of production would be sustainable, cost-effective, carbon-neutral, and energy-saving.

The World Bank report states that “ammonia and hydrogen offer additional flexibility as they can also be produced from natural gas combined with carbon capture storage (CCS technology) – often referred to as “blue fuels”. These multiple production pathways can help overcome concerns that not enough renewable electricity may be available initially to produce “green” ammonia and “green” hydrogen only.”

Currently, the majority of ammonia and hydrogen is sourced from natural gas and coal, and the production from these fossil fuel sources is itself energy intensive. This leads to a high carbon footprint, which negates any claim of green energy. While there are ongoing global initiatives that intend to produce hydrogen though electrolysis using renewable energy, this process comes with its own drawbacks.

As Gilpin says: “The use of primary renewable power [such as wind or solar] to make a secondary renewable energy [like hydrogen or ammonia made by using wind or solar] is an inefficient use of energy.” Instead, she argues, that it would be far more efficient to simply use wind power for direct thrust, particularly as it is free, abundant, clean and exclusively available to ships equipped to use it.

Pedersen raises a similar point, noting that if the effort of producing hydrogen for green shipping was to lead to greater environmental degradation in an associated industry, then the choice to use a carbon-zero fuel such as hydrogen (or ammonia) might be worse than the current use of carbon-based fuels. As a result, Pedersen says: “A lot of the answers to these questions may not actually lie with the shipping industry but may lie shore-side, particularly as shipping is not the only industry competing for low-carbon fuels these days.”

Gilpin notes that a current imperative, given the likelihood of an energy-constrained future, is to consider saving as much fuel as possible in the immediate term. “If we incorporate wind, hull coatings, the latest propeller solutions and make slow steaming mandatory where, with smart use of route optimisation, we can do so with the existing fleet, then we quickly drive down emissions – essential in this climate emergency – and make the future fuels issue much less of an economic problem for the industry.”

 

Photo credit: Shaah Shahidh on Unsplash
Published: 11 June, 2021

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.
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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.
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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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