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Danish Shipping and partners: EU ETS must reflect lifecycle emissions of green bunker fuels

Other signatories include Methanol Institute, World Shipping Council, Swedish Shipowners’ Association, Royal Association of Netherlands Shipowners, and the Renewable Hydrogen Coalition.
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The maritime trade and employer organisation Danish Shipping on Monday (21 November) said it has written an open letter to EU’s decision makers co-signed by organisations from both the energy and shipping sector.

The main message to them was that the EU ETS must reflect the whole climate footprint of emissions from bunker fuels to be a truly green regulation.

The final and crucial details in the Europeans Commission’s proposal on the inclusion of shipping in the Emission Trading System, ETS, are about to be set in stone as the EU institutions are approaching a political agreement. Together with other organisations representing energy and shipping, Danish Shipping are now once again trying to push the regulation in the greenest direction possible. 

In an open letter sent to key Members of the European Parliament as well as Member State negotiators, the signatories emphasise the importance of considering the full climate impact of the new green fuels from extraction at the source to combustion on board the ship.

The signatories include Methanol Institute, World Shipping Council, Swedish Shipowners’ Association, Royal Association of Netherlands Shipowners, and the Renewable Hydrogen Coalition. 

“We find it crucial that the ETS regulation genuinely drives reductions and uptake of new green fuels.  To this end the fuels need to be assessed on a life-cycle basis, LCA, or so-called Well-to-Wake perspective which considers the full climate impact from extraction to refining and finally combustion in the ships’ engine,” says Maria Skipper Schwenn, Director of Climate, Environment and Security at Danish Shipping.

In other words, for the ETS to promote green fuels which are key for the green transition, it is key that it distinguishes between fossil and green fuels by rewarding the fuels with the lowest climate footprint during the production phase – not just the emissions from the ship itself.

The issue becomes very apparent when looking at future fuels such as methanol and ammonia. Unless LCA is included, the ETS will not distinguish whether methanol is produced as a clean electro fuel (e-methanol) or on a fossil basis i.e., green vs. black methanol. They both emit CO2 emissions at combustion, but e-methanol reuse CO2 in the production of new e-methanol. Hence e-methanol has no climate footprint in a life cycle approach. In addition, green fuels are significantly more expensive, and without LCA the ETS would discourage investments in green fuels.

“First and foremost, we are not being honest to ourselves or the climate if we reward something that is not truly green. However, at this very moment decision makers from the EU have the possibility to make the right choice and ensure the right stepping stones for future investment paths,” says Maria Skipper Schwenn.

The open letter is sent to representatives of the European Parliament, the Council, and the Commission in the tripartite meetings on the legislative proposal on the initiative of Danish Shipping.

Note: The open letter from Danish Shipping and other organisations can be found here. 

 

Photo credit: Cameron Venti from Unsplash
Published: 22 November, 2022

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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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LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.
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July 21, 2026

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CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

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Nuclear

ABS awards AiP to Korean institute for SMR-powered container ship concept design

KRISO says AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.
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ABS awards AiP to Korean institute for SMR-powered container ship concept design

Korea Research Institute of Ships & Ocean Engineering (KRISO) on Thursday (16 July) received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its concept design of a 15,000 TEU Small Modular Reactor (SMR)-powered container ship utilising Molten Salt Reactor (MSR) technology.

KRISO said the AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

“This achievement demonstrates international recognition of KRISO’s technological capabilities in the rapidly evolving field of nuclear-powered shipping, supporting the transition toward low-carbon maritime transport,” it said. 

Building on this milestone, KRISO will continue advancing basic and detailed ship design, paving the way for future demonstration and commercialisation of SMR-powered vessels. 

Through continued R&D and international collaboration, KRISO remains committed to strengthening next-generation maritime technologies and contributing to the safe deployment of nuclear propulsion in the maritime industry.

 

Photo credit: Korea Research Institute of Ships & Ocean Engineering
Published: 21 July, 2026

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