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Clean Tyne Shipping Corridor project outlines port’s green methanol bunkering hub ambition

Study explores current use of alternative bunker fuels in the shipping industry, and challenges the sector faces in transitioning from conventional fuels to net zero carbon fuels.

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Dr Eleni Bougioukou

The Port of Tyne, working with Connected Places Catapult and partners Arup, Lloyds Register, EDF R&D UK, Newcastle University and the North East LEP, on Tuesday (19 September) published the results of a feasibility study looking at the decarbonisation of the maritime industry through the creation of green shipping corridors, and the adoption of scalable zero-emission energy sources.

The Clean Tyne Shipping Corridor Project – funded by the Department for Transport and delivered in partnership with Innovate UK as part of the Clean Maritime Demonstration Competition Round 2 (CMDC2) – sets out the opportunities and economic and environmental benefits of creating a new, green shipping corridor from North-East England that links the region with the European Green Corridors Network

The study also explores the current use of alternative bunker fuels in the shipping industry, and some of the challenges the sector faces in transitioning from conventional fuels to net zero carbon fuels like methanol, hydrogen, and ammonia.

It is hoped the study, and the accompanying roadmap, will create opportunities for UK ports - including the Port of Tyne - to lead shipping’s transition to net zero, which currently accounts for approximately 3% of annual CO2 emissions globally.

Dr Eleni Bougioukou, Innovation Manager at the Port of Tyne, said: “Through The Clean Tyne Shipping Corridor Project we have been investigating what technology, infrastructure investment, and interventions are needed to create a green shipping corridor from the Port of Tyne to Rotterdam using renewable methanol.

“One of the biggest challenges we have found is the current cost differential between conventional and zero emissions fuels. The cost of alternative fuels in the maritime sector is prohibiting the pace of decarbonisation. There is also a need for greater investment in research, innovation, and digital adoption to help improve technologies that increase productivity throughout green corridors, ensuring they generate a positive return on investment.

“Despite some of the challenges, green corridors provide a huge opportunity to transform the current model of shipping by investing in staff, skills, and infrastructure. Working collaboratively to develop and share facilities, aggregate demand for future fuels, and align funding strategies, we can position the UK at the forefront of green shipbuilding and maritime technology.”

The study explores the technical, strategic, and commercial barriers and enablers to creating a green shipping corridor in North-East England. It goes on to look at the economic and regulatory feasibility of the project, and the opportunities to attract inward investment.

The Clean Tyne Shipping Corridor Roadmap outlines a series of milestones and activities that the Port of Tyne, its customers, and the green methanol supply chain, will need to deliver to establish the Port as a green methanol bunkering hub.

Compiled through stakeholder engagement, literature review, and analysis of port and vessel-calling data, The Clean Tyne Shipping Corridor Project provides the roadmap to create more green shipping corridors in ports across the UK and encourage the early adoption of alternatives to petroleum-based fuels in the maritime industry.

The study shows that a holistic view of the fuel production, bunkering and vessel system is required to examine the opportunities at the Port of Tyne and regionally. There’s an opportunity for the NE to be a leader in UK maritime decarbonisation, with the right public and private actions. We’re looking forward to seeing ideas translate to action in the near term!”

The Clean Tyne Shipping Corridor project was awarded over £390k of UK Government funding from Round 2 of Clean Maritime Demonstration Competition (CMDC2). It aims to establish at least one of the six green corridors pledged in the Clydebank Declaration at COP26 by 2025.

The full report is available to read at https://cp.catapult.org.uk/report/clean-tyne-shipping-corridor-roadmap/

Photo credit: Port of Tyne
Published: 26 September 2023

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Methanol

South Korea achieves milestone with first SIMOPS methanol bunkering in Busan

Hyodong Shipping’s bunkering vessel “Hyodong Chemi” supplied 3,000 mt of methanol to containership “Antonia Maersk” at Busan New Port Terminal 2 (PNC) during cargo unloading.

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South Korea achieves milestone with first SIMOPS methanol bunkering in Busan

South Korea successfully conducted its first ever Simultaneous Operations (SIMOPs) of ship-to-ship methanol bunkering at Busan New Port on 4 October, according to Korean Register (KR) on Thursday (30 October). 

KR said this groundbreaking achievement marks a crucial advancement in the nation's commitment to developing a sustainable ship fuel supply chain.

In an 11-hour bunkering operation, Hyodong Shipping’s bunkering vessel Hyodong Chemi supplied 3,000 metric tonnes (mt) of methanol to containership Antonia Maersk at Busan New Port Terminal 2(PNC) during cargo unloading. 

This follows the successful LNG bunkering SIMOPs at Busan New Port in August. 

The Ministry of Oceans and Fisheries (MOF) spearheaded this initiative as part of its plan to build an Eco-friendly Ship Fuel Supply Chain, announced in November 2023. The ministry has been diligently working on securing bunkering vessels, developing port infrastructure, and standardising bunkering procedures.

Busan Port Authority (BPA) supported the methanol bunkering demonstration project, offering exemptions on port facility usage fees and coordinating with relevant agencies to review safety protocols through an inter-agency consultative body.

Korean Register (KR) has played a pivotal role in providing technical support for the development of a methanol bunkering safety system. KR's contributions include developing standard operating procedures, defining safety management zones, and creating guidance for self-safety management plans.

This accomplishment is expected to significantly enhance the competitiveness of South Korean ports in the growing market for eco-friendly shipping. The successful implementation of SIMOPs, which allows for simultaneous cargo operations and supply of green fuel, is particularly attractive to shipping companies aiming to reduce costs and improve efficiency.  

KANG Joonsuk, CEO & President of BPA, said: “This successful demonstration marks a monumental achievement, showing that Busan Port is fully capable of supplying methanol. We plan to enhance Busan Port’s global competitiveness by developing infrastructure and advancing technology to expand eco-friendly fuel bunkering, positioning it as a leading green port on the world stage.”  

LEE Hyungchul, Chairman & CEO of KR, said: “As the maritime industry continues to seek greener alternatives, South Korea is trying to position itself at the forefront of sustainable shipping practices. KR will continue to provide full support for technical cooperation to ensure safe and successful green fuel bunkering operations.”

Related: South Korea achieves first-ever SIMOPS LNG bunkering operation of bulk carrier 

Photo credit: Korean Register
Published: 1 November, 2024

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Methanol

GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 37.5 to 38.6 Mt by 2030

Information shared by the Methanol Institute meant to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

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GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 37.5 to 38.6 Mt by 2030

The Methanol Institute recently shared with Manifold Times the renewable and low-carbon methanol project pipeline October 2024 database release produced by Finland-based GENA Solutions Oy (Green Energy Analytics).

Information from the release is meant to provide the bunkering publication’s readers with insight on renewable methanol availability, and to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Key highlights of the October 2024 release are as follows:

  •   The renewable methanol project pipeline increased from 29.3 Mt in September to 30.5 Mt in October (+1.2 Mt). The total renewable and low-carbon methanol project pipeline grew from 37.5 to 38.6 Mt.
  •   As of October 2024, GENA tracks 108 e-methanol plants and projects with total capacity of 18.0 Mt (+1.0 Mt), 75 biomethanol plants and projects with total capacity of 12.5 Mt (+0.2 Mt), and 14 low-carbon methanol plants and projects with total capacity of 8.1 Mt.
  •   Six projects were added in the October release: three in China, two in Europe and one in Brazil. One frozen project was excluded from Project Navigator.
  •   One biomethanol project has started construction during the last month. Currently 1.9 Mt of renewable methanol projects are under construction.
  •   From February to October 2024, the renewable methanol project pipeline increased from 19.7 Mt to 30.5 Mt, an increase of 10.8 Mt (+55%).
  •   The likely range of renewable methanol capacity by 2030 is estimated at 7-14 Mt (23-46% of the project pipeline).

Renewable methanol project pipeline

Renewable methanol by region (1)

Renewable methanol by feedstock (2)

Methanol by status (2)

Renewable methanol scenarios (3)

 

Photo credits: GENA Solutions
Published: 1 November, 2024

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Alternative Fuels

Nador West Med set to become bunkering hub for CMA CGM DF gas, methanol vessels

CMA CGM and Marsa Maroc will equip and operate half of Nador West Med container terminal for 25 years, which is also expected to become a bunkering hub for new synthetic energies in Mediterranean.

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Nador West Med set to become bunkering hub for CMA CG DF gas, methanol vessels

French shipping giant CMA CGM on Tuesday (29 October) signed a joint venture agreement with Morocco port terminal management company Marsa Maroc to equip and operate for 25 years a 750-meter section of quay and 35 hectares of yard within the Nador West Med container terminal. 

The terminal is also expected to be a maritime bunkering hub for new synthetic energies —e-methane and e-methanol— in the Mediterranean, notably for the CMA CGM Group's fleet of dual-fuel gas and methanol vessels.

This joint venture, in which CMA CGM and Marsa Maroc will hold 49% and 51% respectively, will equip and operate 50% of the Nador West Med container terminal, i.e. 35 hectares of container yard and 750 meters of quay with a maximum draught of 18 meters. 

Already present in Morocco in the Eurogate Tangiers and Casablanca container terminals (via SOMAPORT), the CMA CGM Group is pursuing with this strategic and operational agreement its development as a major player in the country's supply chain.

Within the framework of a 25-year sub-concession, the CMA CGM Group and Marsa Maroc will make major investments totaling USD 280 million, with the aim of achieving an annual terminal output of 1.2 million TEUs. 

Capable of handling the world's largest container ships with a maximum draught of 18 meters, the terminal will eventually be equipped with 8 transshipment cranes, compared with 6 at present, and 24 electric RTGs, compared with 15 at present. 

Ideally located in the strategic Gibraltar zone, in the Bay of Betoya, on the Oued Kert estuary, the port of “Nador West Med” has significant assets to complement the CMA CGM Group's terminals in the strategic Western Mediterranean zone. 

Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: "Morocco is positioning itself as a strategic logistics and port hub with strong growth potential.”

“The partnership we are entering into with Marsa Maroc marks a key step for the CMA CGM Group, strengthening our presence through the Nador West Med container terminal. Our ambition is to support the country's development, particularly in the forward-looking sectors of logistics and alternative energies.”

 

Photo credit: CMA CGM
Published: 30 October 2024

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