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Bunker Holding among firms committed to support renewable hydrogen-derived marine fuels

Signatories of the Joint Commitment include Maersk, Mitsui O.S.K. Lines, Trafigura, WinGD, X-Press Feeders and MAN Energy Solutions.

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RESIZED Chris Pagan

Thirty leaders in the shipping sectors – including cargo owners, ship operators, ports, bunkering companies, and equipment manufacturers – on Wednesday (6 December) signed a Joint Commitment, organised by the UN High Level Champions and RMI, at COP28 to enable the use of renewable hydrogen-derived shipping fuel this decade to meet maritime industry decarbonisation targets. 

Signatories of the Joint Commitment include Bunker Holding Group, Maersk, Mitsui O.S.K. Lines,  WinGD, X-Press Feeders, Trafigura and MAN Energy Solutions. 

The Commitment includes important targets for fuel use, fleet development, and port infrastructure needed to get the nascent green hydrogen industry to scale.  

To reach targets set out in the International Maritime Organization (IMO)’s 2023 Strategy, adopted by 175 member states earlier this year, the average ship’s greenhouse gas intensity will need to be reduced by 86% by 2040. Achieving this requires large-scale and rapid growth in the use of zero or near zero-emission fuels, of which green hydrogen-derived fuels like ammonia and methanol will play a crucial role. Legally binding international regulations that enter into force in 2027 will require the use of low-emissions fuels. 

Ports and ports’ enablers have added their support for the Call to Action, committing to invest in infrastructure and safety projects to support re-fueling of ships with green hydrogen and its derivatives. 

Rasmus Bach Nielsen, Global Head of Fuel Decarbonisation for Trafigura, said: “We will only achieve the deep decarbonisation of shipping by switching to zero-emission fuels derived from renewable-based hydrogen.  As one of the world’s largest charterers of vessels, the commitments we are making alongside others should encourage investment by ports and port enablers serving shipping routes to invest in the necessary infrastructure. This in turn will help further incentivize the production of green hydrogen and hydrogen-derived fuels for use in shipping.” 

Keld R. Demant, CEO of Bunker Holding Group, said: “As the world’s largest bunker supplier, Bunker Holding Group fully supports the IMO GHG Strategy for decarbonising the shipping industry. We contribute by partnering with alternative fuel producers, and handle trades and logistics related to the last mile delivery. But to succeed, all industry stakeholders along the value chain need to stand together.” 

“To stimulate the demand and supply of zero or near-zero fuels, IMO should adopt pricing incentives as well as requirements for alternative fuels. Regulatory insurance is a prerequisite for the necessary investment in production, infrastructure, and new vessels.”  

Equipment manufacturers also joined as signatories, committing to support research and development efforts to further green hydrogen-based fuel deployment in the maritime sector. 

Uwe Lauber, CEO of MAN Energy Solutions, said: “Regardless of what other future-fuels eventually come into play, green hydrogen and green fuels derived from it will undoubtedly play a major role in all scenarios. At MAN Energy Solutions, we strongly believe that shipping is the ideal enabler for a hydrogen ramp-up, consuming as it does around 300 million tons of conventional fuels annually.”

 “Currently, our subsidiary – H-TEC SYSTEMS – is building a manufacturing facility for PEM electrolysis stacks for green hydrogen, which will add to the necessary scaling and market for zero-emission fuels. We are happy to add our voice to the growing alliance pushing for marine decarbonisation.” 

Takeshi Hashimoto, CEO at Mitsui O.S.K Lines, Ltd. (MOL), said: “For a general shipping company such as MOL, there is no single solution for vessel fuel. We will promote the adoption of optimum fuels including hydrogen, ammonia and any other potential green fuels for each business on the premise of achieving net zero in 2050 and our interim milestones.”

“In addition to working on the development and operation of vessels from the perspective of fuel users, we will work with diverse partners to urge upstream players of the fuel supply chain to join our efforts to expand the use of new fuels.”

As part of the Commitment, green hydrogen producers agreed to produce 11 million tons of the low-emissions fuel for use by the shipping sector by 2030. Longer term, a decarbonised global shipping sector will become one of the largest demand sources for green hydrogen, projected to account for approximately 15 percent of total demand by 2050.  

Alex Hewitt, CEO of CWP and chair of the Green Hydrogen Catapult, said: “In the mission to decarbonise shipping using green hydrogen and derivatives, global collaboration is key. This statement highlights the need for all participants across the value chain to collaborate deeply on both the supply and demand sides. We’re not building big green energy projects; we’re catalyzing change. It’s time for a determined step forward to foster projects that go well beyond current thinking on scale and get us straight onto the scale up fast track.”

To meet growing demand and enable decarbonised vessels, fuel supply and infrastructure must be present at ports on both sides of shipping routes, a fact that will require significant international coordination and investment.  

Sam Cho, Port of Seattle Commission President, said: “In the Pacific Northwest, we are actively working with our industry partners to catalyse development of a regional market for zero emissions fuels. We see green hydrogen as having significant potential to decarbonise maritime.”

“Green corridors focusing on cruise to Alaska and cargo with the Republic of Korea are already underway. A critical next step is to look beyond our own port, and to ensure that our strategies align with future planning and investment in fuel supply in our region and around the world.” 

Signatories called on governments to follow suit and support private sector collaboration with ambitious fuel standards and clean fuel mandates. To date, 41 governments have formulated national hydrogen strategies, many of which specifically address the shipping sector. Further action is needed to align and commit to well-to-wake emissions accounting, creating an enabling policy environment for verifiable low-emissions fuels. 

“In support of our collective actions we call on the IMO and member States to adopt a GHG pricing mechanism, a levy, as the most appropriate mechanism to achieve a just and equitable transition, among other measures. Collective action and cross sector cooperation is vital to make sure that shipping’s zero emission transition happens smoothly and quickly,” Nielsen at Trafigura said. 

Note: The Joint Commitment document can be viewed here.

Photo credit: Chris Pagan on Unsplash
Published: 7 December, 2023

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Wind-assisted

Singapore: EPS orders its first wind-assisted propulsion system for tanker

Firm signed a contract for its first ever wind-assisted propulsion system, partnering with bound4blue to install three 22-metre eSAILs® onboard “Pacific Sentinel”.

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Singapore: EPS orders its first wind-assisted propulsion system for tanker

Singapore-based Eastern Pacific Shipping (EPS) on Thursday (22 February) said it signed a contract for its first ever wind-assisted propulsion system, partnering with bound4blue to install three 22-metre eSAILs® onboard the Pacific Sentinel

The turnkey ‘suction sail’ technology, which drags air across an aerodynamic surface to generate exceptional propulsive efficiency, will be fitted later this year, helping the 183-metre, 50,000 DWT oil and chemical tanker reduce overall energy consumption by approximately 10%, depending on vessel routing.

Suitable for both newbuilds and retrofit projects, the system delivers energy efficiency and cost savings for a broad range of vessels, regardless of their size and age.

Singapore: EPS orders its first wind-assisted propulsion system for tanker

José Miguel Bermudez, CEO and co-founder at bound4blue, said: “Signing an agreement with an industry player of the scale and reputation of EPS not only highlights the growing recognition of wind-assisted propulsion as a vital solution for maximising both environmental and commercial benefits, but also underscores the confidence industry leaders have in our proven technology.”

“It’s exciting to secure our first contract in Singapore, particularly with EPS, a company known for both its business success and its environmental commitment.”

“We see the company as a role model for shipping in that respect. As such this is a milestone development, one that we hope will pave the way for future installations across EPS’ fleet, further solidifying our presence in the region.”

Cyril Ducau, Chief Executive Officer at EPS, said: “EPS is committed to exploring and implementing innovative solutions that improve energy efficiency and reduce emissions across our fleet.” 

“Over the past six years, our investments in projects including dual fuel vessels, carbon capture, biofuels, voyage optimisation technology and more have allowed us to reduce our emissions intensity by 30% and achieve an Annual Efficiency Ratio (AER) of 3.6 CO2g/dwt-mile in 2023, outperforming our emission intensity targets ahead of schedule. The addition of the bound4blue groundbreaking wind assisted propulsion will enhance our efforts on this path to decarbonise.”

“With this project, we are confident that the emission reductions gained through eSAILs® on Pacific Sentinel will help us better evaluate the GHG reduction potential of wind assisted propulsion on our fleet in the long run.”

Pacific Sentinel will achieve a ‘wind assisted’ notation from class society ABS once the eSAILs® are installed. 

 

Photo credit: Eastern Pacific Shipping
Published: 23 February, 2024

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LNG Bunkering

Galveston LNG Bunker Port joins SEA-LNG coalition

SEA-LNG said move will further enhance its LNG supply infrastructure expertise and global reach, while giving GLBP access to the latest LNG pathway research and networking opportunities.

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Galveston LNG Bunker Port joins SEA-LNG coalition

Galveston LNG Bunker Port (GLBP), a joint-venture between Seapath Group, one of the maritime subsidiaries of the Libra Group, and Pilot LNG, LLC (Pilot), a Houston-based clean energy solutions company, has joined SEA-LNG, according to the latter on Wednesday (21 February). 

SEA-LNG said the move will further enhance its LNG supply infrastructure expertise and global reach, while giving GLBP access to the latest LNG pathway research and networking opportunities.

GLBP was announced in September 2023 and will develop, construct and operate the US Gulf Coast’s first dedicated facility supporting the fuelling of LNG-powered vessels, expected to be operational late-2026.

The shore-based LNG liquefaction facility will be located on Shoal Point in Texas City, part of the greater Houston-Galveston port complex, one of the busiest ports in the USA. This is a strategic location for cruise ship LNG bunkering in US waters, as well as for international ship-to-ship bunkering and cool-down services. GLBP will offer cost-effective turn-key LNG supply solutions to meet growing demand for the cleaner fuel in the USA and Gulf of Mexico.

Jonathan Cook, Pilot CEO, said: “With an initial investment of approximately $180 million, our LNG bunkering facility will supply a vital global and U.S. trade corridor with cleaner marine fuel. We recognise that SEA-LNG is a leading partner and a key piece of the LNG bunkering sector, and will give us access to insights and expertise across the entire LNG supply chain.

“LNG supports environmental goals and human health by offering ship operators immediate reductions in CO2 emissions and virtually eliminating harmful local emissions of sulphur oxides (SOx), nitrogen oxides (NOx) and particulate matter.”

President of Seapath, Joshua Lubarsky, said: “We are very pleased to be supporting the decarbonization of the maritime industry through strategic, and much needed, investments into the supply of alternative fuels.  We are also happy to be a part of SEA-LNG which has done a wonderful job in advocating for advancements in technology in this vital sector.”

Chairman of SEA-LNG Peter Keller, said: “We’re proud to welcome another leading LNG supplier to the coalition and are looking forward to a mutually beneficial relationship. With every investment in supply infrastructure in the US and worldwide, the LNG pathway’s head start increases. Global availability, alongside bio-LNG and e-LNG development, makes LNG the practical and realistic route to maritime decarbonisation.

“All alternative fuels exist on a pathway from grey, fossil-based fuels to green, bio or renewable fuels. Green fuels represent a scarce resource and many have scalability issues, so we must start our net-zero journey today with grey fuels. LNG is the only grey fuel that reduces greenhouse gas emissions, well-to-wake, so you need less green fuel than alternatives to improve emissions performance.”

 

Photo credit: SEA-LNG
Published: 23 February, 2024

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Biofuel

VARO and Orim Energy to supply bio bunker fuels in ARA region

VARO will source, produce and blend various waste and advanced bio feedstocks to high quality bunker fuel specs; Orim will source fuel and gas oils for blending and deliver final biofuel blends to vessels.

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VARO and Orim Energy to supply bio bunker fuels in ARA region

VARO Energy (VARO) on Wednesday (21 February) said it is partnering with Orim Energy (Orim) to provide shipping customers in the Port of Rotterdam – and wider Amsterdam-Rotterdam-Antwerp (ARA) region - with biofuels. 

The agreement supports the decarbonisation of maritime transportation and inland shipping in Northern Europe. It also contributes to the wider targets set by the International Maritime Organization (IMO) to reduce the total annual GHG emissions from shipping by at least 20% by 2030 and at least 70% by 2050, compared with 2008 levels.

Current demand for Fuel Oil in ARA , Europe’s largest bunkering hub, is approximately 14 million tonnes per year. Supported by new EU regulations, the market for B30, a blend of 70% Fuel Oil and 30% biofuels, is expected to grow rapidly to the end of the decade. As a result of this joint initiative, VARO and Orim will be well positioned to meet this increased demand and support the decarbonisation plans of their shipping customers.

VARO’s biofuels trading capabilities and growing biofuel manufacturing asset base will complement Orim’s extensive distribution, storage and bunkering capabilities in ARA. Under the agreement, VARO will source, produce and blend various waste and advanced bio feedstocks to high quality bunker specifications. Orim will source the fuel and gas oils for blending and deliver the final biofuel blends to customers’ vessels.

VARO has a long track record of providing biofuels for maritime logistics. Since 2018, the company has supplied the Port of Rotterdam with HVO100 (100% Hydrotreated Vegetable Oil “HVO”) for use with the Port’s service fleet. In 2023 VARO signed an agreement with Höegh Autoliners to supply the company with 100% advanced biofuels for its shipping fleet.

The partnership is aligned with VARO’s strategy to become the partner of choice for customers in the energy transition by providing them with the low-carbon energy solutions they need to decarbonise.

Dev Sanyal, CEO of VARO, said: “Meeting rising demand for blended biofuels is critical to achieving the EU and IMO’s decarbonisation targets for shipping. Our experience in biofuels, combined with Orim’s logistics and bunkering operations, will help meet this demand at Rotterdam, Europe’s largest port facility. I am delighted to be entering into a strategic partnership with Orim and to further build on VARO’s long-established presence in Rotterdam. This is another step in our journey to enable the decarbonisation of the maritime sector.

Edwin Coppens, Managing Director of Orim, said: “Upcoming EU and IMO regulations drive the need to scale up with biofuels and ensure quality assurance going forward. Partnering with VARO allows us to do just that, using each other’s strengths to optimize our blending expertise and network. We will benefit from VARO’s extensive experience with biofuels, which includes joint testing with leading ship engine suppliers. Together, we can increase our sourcing and supply capabilities, extending our reach and further strengthening our position in the ARA region.”

 

Photo credit: VARO Energy
Published: 23 February, 2024

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