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Decarbonisation developments and challenges by Standard Club: examining emerging bunker fuels

Standard Club elaborates on methanol and ammonia as emerging marine fuels and discusses the benefits and challenges for each in this article.

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The Standard Club on Thursday (9 January) said it has published an article elaborating the results of its 2022 Alternative Fuels survey to look one step further – to 2030 and 2050 – and examine the emerging fuels that may feature heavily in the shipping industry’s route to decarbonisation:

Examining emerging fuels

The changing backdrop only ramps up the pressure on shipping to continue its course towards decarbonisation. With the timescale to net-zero potentially set to move forward, shipowners and operators would need to act fast and look beyond the short and mid-term goals and look forward to long-term solutions.

Our 2022 Alternative Fuels survey revealed that methanol and ammonia are at the forefront of members’ thinking when it comes to meeting IMO-2050 targets. So, what benefits do each have to offer, and what challenges may shipowners and operators face, should they choose to adopt one of these emerging fuels?

Methanol

Methanol (CH3OH) is one of the commonly shipped chemical commodities. It is produced from carbon, typically from natural gas and coal. However, carbon can also be sourced from a variety of renewable sources, including ‘biomass’, such as food crops, agricultural waste, forestry residue, used cooking oil and other waste products – supporting methanol’s green credentials.

From a regulatory aspect, the IMO interim guidelines for ships using methyl or ethyl alcohol as fuel (MSC.1/Circ.1621) along with the IGF Code for ships using low-flashpoint fuels provides detailed goal-based and prescriptive requirements for application of methanol as marine fuel.

Methanol has several benefits, including:

  • Liquid at ambient temperatures, so no need to heat or cool.
  • Relatively easier to store and handle than cryogenic fuels.
  • Possible to convert existing engines from conventional fuel to methanol.
  • Relatively minor modifications needed to existing storage and bunkering facilities.
  • Already widely traded, well-understood and readily available in some ports for bunkering.
  • Water-soluble and biodegradable, with a lower impact on the environment if a spill happens.
  • Comparatively more energy-dense than hydrogen and ammonia.
  • Clean burning fuel with low levels of sulphur oxide (SOx), nitrous oxide (NOx) and particulate matter.

However, it also presents a number of challenges:  

  • Production is still currently mainly via processing natural gas (grey methanol) or coal (brown methanol), limiting the reduction of CO2 emissions.
  • Only when methanol is produced using renewable sources like biomass, and if the power used to produce it comes from renewable energy, it is considered to be green methanol.
  • Lower energy density than conventional fuel oil.
  • Large fuel volume is almost 2.5 times fuel oil, so requires larger storage tanks and/or more frequent bunkering.
  • Low flash point of well below 60°C is a fire risk, requiring extra fire prevention measures when handled and stored.
  • Toxic if inhaled, ingested or handled.
  • Increased corrosion risks Apart from larger volume of fuel tanks, additional cofferdams will be needed to prevent any potential leak into machinery spaces.

Ammonia

Ammonia (NH3) is typically created by extracting hydrogen from hydrocarbon fuels and combining it with nitrogen extracted from liquified air. Under ambient conditions, it is a colourless gas with a characteristic pungent smell.

Essentially, ammonia is a carrier of hydrogen. However, compared to hydrogen, ammonia storage is more practical due to its energy density and liquefaction temperature.

It is currently produced from natural gas but there is potential for carbon capture to reduce the emission footprint (blue ammonia), or for production from renewable sources (green ammonia).

Benefits of ammonia include: 

  • Since ammonia doesn’t contain any molecular carbon, during its combustion there are no CO2 emissions.
  • ‘Green’ production, using green hydrogen and renewable power for the conversion process, is possible. However, this process may influence its cost competitiveness.
  • Currently produced in substantial volumes for the chemical industry and distributable using existing infrastructure.
  • Commonly transported as cargo, so issues around handling and carriage are already understood.
  • Compared to hydrogen or LNG, ammonia is relatively easier to handle in terms of temperature, as it is stored at around -33oC.
  • Low fire risk due to its relatively narrow flammability range, as compared to other fuels.
  • However, it also poses a variety of challenges, such as:
  • Its toxicity. Being extremely soluble, even at extremely low concentrations, ammonia can be absorbed by body fluids (sweat, tears, saliva) and may cause severe chemical burns. Therefore, using ammonia fuel will require additional safety systems.
  • Apart from toxicity, ammonia also poses enhanced corrosion risk of certain metals such as copper, brass and zinc and various alloys.
  • Although ammonia is commonly carried as a cargo, it is still in the early stages of development as a fuel the regulatory frameworks are still being worked out. The IGF Code currently does not provide prescriptive requirements to cover toxic fuels like ammonia.
  • Ammonia’s lower volumetric efficiency and energy density means much more storage capacity will be required on board. The additional space for fuel may require larger vessel sizes, decreased cargo space or more frequent bunkering.
  • Tanks will need to be designed for temperature and/or pressure control if ammonia is stored in a refrigerated condition, as ammonia continuously evaporates and generates boil-off gas due to heat gain, which increases pressure in tanks if not managed. This storage at low temperatures will require energy.
  • Ammonia burns much more slowly than other fuels and has higher autoignition temperature than conventional fuel oil. This means that sustaining combustion once it gets started is going to be more difficult with ammonia than with other fuels. It will require an initiator/ igniter (combustion promoter) to enhance the burn, and this may cause difficulties in increasing engine output.
  • While carbon-free, ammonia contains nitrogen, and burning it will result in nitrogen oxide (NOx) and nitrous oxide (N2O) emissions. GHG impact of N2O emissions is nearly 300x greater than CO2.

As we highlighted in our previous blogs, members will need to take some key factors into account, regardless of whether they opt for methanol, ammonia, or other potential alternative fuels.

Training personnel onboard and on shore will be critical, as will be continued close collaboration with partners and peers. The shipping industry has traditionally been reluctant to share information, while a lack of clarity and direction has caused some inertia.

To combat this, especially with increasingly stringent deadlines looming on the horizon, members must share innovations, insight, and advice for the benefit of all.

 

Photo credit: Shaah Shahidh on Unsplash
Published: 12 January, 2023

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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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