Alternative Fuels

Demand aggregation can help accelerate availability and use of zero-emission bunker fuels

Global Maritime Forum explored the topic of demand aggregation for zero-emission shipping fuels and the role it can play in supporting their early uptake in a two-part insight brief series.

Published

7 months ago

August 26, 2024

Admin

Demand aggregation measures have the potential to accelerate and broaden access to zero-emission bunker fuels by addressing some of the factors keeping first movers from securing supply, according to a new two-part insight brief series by the Global Maritime Forum on Thursday (22 August).

The brief explored the topic of demand aggregation for zero-emission shipping fuels and the role it can play in supporting their early uptake in the sector.

The first brief provided an overview of the challenges early movers are experiencing in securing green methanol and ammonia, and how demand aggregation could help overcome them.

The second surveyed the available approaches to aggregating demand for zero-emission fuels in detail and explores how they can be applied by early movers.

Key Insights

The International Maritime Organization (IMO) targets net zero emissions by 2050, with 5-10% of energy from alternative fuels by 2030. However, only a few shipping companies have secured an adequate supply of these fuels.

This challenge arises because operators must commit to long-term, large-scale, high-cost fuel contracts (10-15 years). Without such agreements, producers cannot raise the capital to begin fuel production, stalling the transition.

To overcome this, the Global Maritime Forum has identified novel solutions that fuel producers, would-be fuel users, and market enablers can use to scale availability such as:

Demand-led measures

Joint procurement – By pooling purchasing power, shipowners, operators and/or charters can exercise collective bargaining power, support the development of key infrastructure, and send strong demand signals to the market

Joint ventures - For participants in existing green corridor initiatives to share costs and risks, leverage combined financial capacity, and simplify shipping's complex contracting

Third party-led measures

Market making - Having a government or international institution step in to make the commitment with producers and then selling the fuel on to shipping companies on a shorter, smaller, and/or cheaper basis.

Hydrogen hubs – Increased participation in hydrogen hubs to connect producers, consumers, and connective infrastructure in a specific location.

Supply-led measures

Time stacking – Encouraging fuel producers, and their financiers, to accept a package of shorter contracts so no single shipping operator must commit to a full 10 to15-year contract

Through these measures, sustainable fuels such as green ammonia and methanol can be produced in high enough quantities to hit international sustainable fuel targets, while keeping the burden on shipping manageable.

To help early movers understand the options at their disposal, these insight briefs survey these approaches and provide an overview of key considerations surrounding them.

With demand aggregation being an evolving landscape, it is not intended to be an exhaustive presentation, but rather to serve as a starting point for further discussion on the topic.

Note: The two-part insight brief series by the Global Maritime Forum can be found here and here.

Photo credit: Venti Views on Unsplash
Published: 26 August, 2024

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New vessel, designed by Incat Crowther and constructed by Guangzhou-based shipbuilder AFAI Southern Shipyard, will serve inter-island commuter and tourism operations across Hong Kong.

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Hong Kong-based Sun Ferry takes delivery of diesel-electric ferry “Xin Ming Zhu 30”

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The new vessel, designed by Incat Crowther and constructed by Guangzhou-based shipbuilder AFAI Southern Shipyard, is the third vessel to join a fleet of seven new vessels designed by Incat Crowther for the mass transit operator.

The vessel will serve inter-island commuter and tourism operations across Hong Kong, connecting Peng Chau, Mui Wo, Chi Ma Wan and Cheung Chau.

The 300-seat passenger ferry boasts Veth azimuth thrusters that provide high manoeuvrability at operating speeds of 14 knots. The adoption of this technology makes the vessel suitable for berthing at piers on inter island routes.

The vessel is also fitted with 72 solar panels providing 7.5 kilowatts of on-board power.

Sam Mackay, Technical Manager at Incat Crowther, said: "This vessel reflects Sun Ferry’s commitment to future focused design solutions that not only meet operational needs, but that exceed customer expectations.”

“With diesel-electric propulsion, solar technology, and passenger-centric design, it sets a new benchmark for sustainable and efficient ferry services in Hong Kong.”

The delivery of the 35-metre hybrid vessel follows the delivery of two 45-metre conventional diesel-powered vessels to Sun Ferry. The final three vessels, all 45-metre vessels, will be delivered by the end of 2025. All vessels in the fleet have been designed by Incat Crowther and built by AFAI Southern Shipyard.

Photo credit: Incat Crowther
Published: 20 March, 2025

Biofuel

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Company supplied the bio bunker fuel, a product containing 30% renewable raw materials, to “BBC Lisbon” at Port of Aveiro on 3 March and to “ANNA” at Port of Leixões on 18 March.

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PRIO delivers Eco Bunkers B30 to two cargo ships at ports in Portugal

Biofuels producer PRIO on Wednesday (19 March) said it carried out Eco Bunkers B30 fuel deliveries to shipping company Briese Chartering in collaboration with its partner UFS Unites Fuel Services this month.

On 3 March, PRIO supplied the biofuel to cargo vessel BBC Lisbon at the Port of Aveiro and to another cargo vessel, ANNA, at the Port of Leixões on 18 March.

“With these two Eco Bunkers B30 deliveries, a product containing 30% renewable raw materials, PRIO enabled Briese Chartering to reduce around 60 tons of CO2 in just two port calls in Portugal,” it said in a social media post.

“Produced at PRIO’s Aveiro plant, biodiesel has the potential to reduce GHG emissions by approximately 88% compared to fossil fuels.”

“PRIO has been demonstrating its commitment to decarbonising the maritime sector by supplying more sustainable products, ranging from 1% to 100% renewable content.”

Manifold Times previously reported PRIO launching its ECO Bunkers B30 biofuel in partnership with Norwegian Cruise Line Holdings and World Fuel Services.

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Photo credit: PRIO
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LNG Bunkering

Gasum completes SIMOPS LNG bunkering operation of PCTC “Höegh Sunlight”

Gasum’s LNG bunker vessel “Coralius” made its 920th LNG delivery to “Höegh Sunlight”, a brand new PCTC, with a capacity of 9100 CEU, at the Port of Gothenburg, Sweden on 10 March.

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Gasum completes SIMOPS LNG bunkering operation of PCTC “Höegh Sunlight”

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The company said it was the first ever LNG delivery to Höegh Sunlight at the Logent Car Terminal on 10 March 2025.

Gasum’s LNG bunker vessel Coralius made its 920th LNG delivery to Höegh Sunlight, a brand new Pure Car and Truck Carrier (PCTC), with a capacity of 9100 CEU, during a ship-to-ship (STS) bunkering operation.

The company did not specify the amount of LNG supplied to the vessel.

The delivery was a collaboration between Gasum, Glander International, Höegh Autoliners, the Port of Gothenburg and Sirius Agency.

Photo credit: Gasum
Published: 20 March, 2025