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DNV: Challenging road ahead for retrofitting to dual-fuel engines

Cost of retrofitting, including fuel storage and fuel supply system, ranges between USD 5 mil – USD 15 mil and, as a rule of thumb, this should not exceed 25% of newbuild cost of a ship to be economically viable.

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Classification society DNV on Tuesday (16 May) released a Maritime Impact report on retrofitting ships with dual-fuel engines to run on alternative bunker fuels and discusses the challenges that comes with it:

The maritime industry’s decarbonization goals are multi-pronged and complex. A collaboration between DNV and engine designer MAN Energy Solutions examines how retrofitting the existing maritime fleet to dual-fuel engines capable of running on sustainable fuels can contribute to these goals.

In order for the shipping industry to achieve decarbonization that is sufficiently in line with the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius, a full life-cycle approach – also known as a ‘well-to-wake emissions’ perspective – needs to be adopted. This forces the maritime industry to assess the emissions of shipping in a comprehensive way and moves shipowners away from the ‘tank-to-wake’ approach, where emissions reporting can be pushed upstream to the production of the fuel. At IMO’s MEPC 80 this approach will be further discussed. 

‘Well-to-wake emissions’ perspective raises standards for existing fleet

While a number of innovations are being applied to the 1,500–2,000 two-stroke and 750 four-stroke new vessels that are launched per year, the greatest challenge to achieving maritime GHG reductions is for the existing merchant fleet, which consists of approximately 55,000 ships with two-stroke engines and 30,000 ships with four-stroke engines.  

Retrofitting these existing ships to be able to run on alternative fuels like ammonia and methanol is one of the options available to the maritime industry to achieve desired reductions in emissions. However, the path ahead for retrofitting is uncertain. 

“Apart from efficiency improvements and the use of biofuels, retrofitting is another option for the existing fleet to achieving decarbonization targets,” says DNV’s Business Development Manager Christos Chryssakis. “However, there is no requirement for retrofitting so the future timeline for achieving this is not clear.” 

Biofuels not scalable for maritime industry

Currently, the most straightforward way of reducing emissions on the existing fleet is by running single-fuel engines on sustainable biofuels. Several biofuels, such as FAME and HVO, have ‘drop-in’ properties which means that they can be blended with existing fossil fuels. This is an attractive option to shipowners as it provides them with a flexible way of achieving decarbonization without having to make large capital investments.  

However, a number of key challenges remain with biofuels. Although 2022 was a record-breaking year for the consumption of biofuels, this still accounted for just 0.1% of the maritime energy mix.  

“Demand for biofuels is high from other industries, and supply is limited,” says Chryssakis. “This means that the maritime industry may struggle to acquire as much biofuel as it needs and that prices will be high. Therefore, it currently seems quite unlikely that biofuels will be a magic bullet for decarbonizing the entire existing maritime fleet.”

Retrofitting fleet provides long-term solution

With biofuels currently unscalable, converting large ships to dual-fuel engines is increasingly seen as one of the ways that the maritime industry could achieve its decarbonization targets. Retrofitting a single-fuel engine to dual-fuel enables a ship engine to run on a second sustainable fuel, as long as this is accompanied by a pilot injection of conventional fuel. While this conventional fuel will primarily be a traditional fossil fuel, sustainable biofuels or synthetic fuels can also be used.  

Dual-fuel conversions have already been applied to converting the engines of energy carriers to the fuel being carried, most frequently to LNG and LPG. This has generally resulted in around a 15–20% reduction in exhaust emissions, highlighting the key role that both of these fuels occupy as transition fuels. However, in order to achieve decarbonization targets, dual-fuel conversions need to be made for fuels which can be produced to emit close to zero ‘well-to-wake emissions’, such as green ammonia, green methanol and e-fuels.  

Larger ships most suitable for retrofitting

According to assessments by DNV and MAN ES, key retrofitting requirements for ships with two-stroke engines are electronically controlled engines, a bore size of at least 50 centimetres and a sea trial conducted after 1 January 2015. The cost of retrofitting, including the fuel storage and fuel supply system, ranges between USD 5 million and USD 15 million depending on the type of fuel and, as a rule of thumb, this should not exceed 25% of the newbuild cost of a ship to be economically viable.  

A ship should typically have a minimum newbuild cost of around USD 50 million to be suitable for retrofitting. Ships fitting these criteria include tankers above 50,000 DWT, bulkers above 160,000 DWT and containers above 7,000 TEU, among others. However, in some cases, such as for ships retrofitting to methanol, this cost can be lower. For four-stroke engines, ships with large bore sizes that conducted a sea trial 8–15 years ago appear to be the best fit for dual-fuel retrofitting. 

“Less than 10% of the existing global merchant fleet are regarded as theoretic candidates for retrofitting,” says Chryssakis. “We don’t see this happening today due to costs and uncertainties but think that this could be achieved over the next five to ten years, particularly after 2030 when regulations really start biting. However, it is difficult to predict how many of these will actually materialize.” 

IMO regulations hindering shipowners from dual-fuel retrofitting

Although several states are pushing the IMO to be even more ambitious and aim for zero emissions by 2050, some of the organization’s regulations are standing in the way of a swift, large-scale dual-fuel retrofitting of the global fleet. Of most concern to advocates of retrofitting, the IMO currently demands that a parent engine test of exactly the same electronically controlled engine type is required for a dual-fuel conversion to be NOx compliant. However, relatively new engine technologies such as methanol and ammonia are not available for all bore sizes, which means that a parent test engine is often unavailable for some desired retrofits to dual-fuel engines.  

In addition, certain older engine models, such as those running on heavy fuel oil (HFO), are not made for newbuilds anymore. This means that a newbuild parent engine is not available for testing in cases where a shipowner wishes to convert a HFO engine to dual fuel, thus making retrofitting extremely difficult under current IMO rules. Unless this regulation is amended, or new guidelines are developed, the pace of retrofitting will be significantly hindered.  

Retrofitting engines also faces practical challenges

A number of other hurdles lie on the road to large-scale retrofitting. The implementation of dual-fuel conversions is expected to be carried out by a limited number of shipyards, due to varying commercial priorities. This may lead to capacity issues if there is high demand for conversions. Furthermore, the complexity of these kinds of projects and current uncertainty around best practices leaves shipowners and yards open to potentially large cost overruns. The higher costs of alternative fuels will also increase the economic worries of shipowners. 

“The cost of fuels like ammonia and methanol presents an issue to shipowners wishing to reduce GHG emissions while also maintaining a profit,” says Chryssakis. “The price of these kinds of fuels is currently much higher than conventional marine fuels and shipowners will need to ensure that their charterers will be willing to cover the increased cost of fuels before committing large amounts of CAPEX to retrofitting projects.” 

Note: The full DNV Maritime Impact report titled ‘Challenging road ahead for retrofitting to dual-fuel engines’ can be found here

 

Photo credit: DNV/ MAN ES
Published: 23 May, 2023

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Biofuel

Pinnacle Marine and Abo Shoten ink MoU for B100 trial in Singapore

Pinnacle will carry out a 1,000-hour B100 biodiesel trial on an aluminium harbour craft in Singapore; Abo Shoten will contribute funding to support construction and operational expenses of the trial vessel.

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Pinnacle Marine and Abo Shoten ink MoU for B100 trial in Singapore

Singapore-based shipbuilding firm Pinnacle Marine on Wednesday (13 November) said it signed a Memorandum of Understanding (MOU) with Abo Shoten, Ltd. to launch a collaborative research project centred on a full biodiesel (B100) trial.

Pinnacle will carry out a 1,000-hour B100 biodiesel trial on a 16-metre aluminium harbour craft within Singapore’s port waters. Other partners are NTU’s Maritime Energy & Sustainable Development Centre of Excellence (MESD), Weichai Singapore Pte Ltd, and China Classification Society.

“As part of the agreement, Abo Shoten will contribute funding to support the construction and operational expenses of the trial vessel,” Pinnacle said in a social media post. 

“This MOU aligns with Abo Shoten’s Sustainable Development Goals, which emphasise sustainable practices, maritime decarbonisation, and environmental stewardship - principles that closely align with Pinnacle’s commitment to sustainability.”

The MOU was formally signed by the CEOs, Mr. Ren Wada of Abo Shoten and Mr. Fabian Lim of Pinnacle Marine.

“We look forward to continued collaboration with our partner in advancing maritime decarbonisation, including the construction, delivery, and successful operation of this research harbour craft powered by B100 biodiesel in our port waters,” the firm added.

Manifold Times previously reported Pinnacle signing a Research Collaboration Agreement with NTU Maritime Energy & Sustainable Development Centre of Excellence (MESD), Weichai Singapore Pte Ltd, and the China Classification Society.

Related: Biodiesel sea trial to be conducted on harbour craft in Singapore

 

Photo credit: Pinnacle Marine
Published: 14 November, 2024

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Ammonia

KR and partners to develop safety guidelines for ship-to-ship ammonia bunkering

KR, HD KSOE, HD HHI, KSS Line, and Liberian Registry will work together to develop standardised safety procedures that will set international benchmarks for ship-to-ship ammonia bunkering.

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KR and partners to develop safety guidelines for ship-to-ship ammonia bunkering

Classification society Korean Register (KR) on Wednesday (13 November) said it has formed a landmark partnership to develop the safety guidelines for ship-to-ship ammonia bunkering through a Memorandum of Understanding (MoU) with HD Korea Shipbuilding & Offshore Engineering (HD KSOE), HD Hyundai Heavy Industries (HD HHI), KSS Line, and the Liberian Registry.

As the demand for ammonia-fuelled vessels rises, the partnership aims to establish robust safety standards for STS ammonia bunkering, an efficient method for supplying fuel to ammonia-fuelled vessels. 

“The safe bunkering of alternative fuels, like ammonia, requires rigorous risk assessment and the establishment of controlled zones,” KR said in a statement. 

“While standards for LNG and methanol bunkering have already been defined through various international industry standards, ammonia currently lacks relevant guidelines, highlighting the urgent need for the partnership’s research.”

To address this industry need, the five organisations involved will work together to develop standardised safety procedures that will set international benchmarks for ship-to-ship ammonia bunkering.

As part of the initiative, HD KSOE will perform risk assessments aligned with international industry standards, while HD HHI and KSS Line will utilise their expertise and experience in alternative-fuel vessels and ammonia carriers to evaluate controlled zones and safety procedures for ammonia STS bunkering. 

KR will verify the compliance of these safety procedures and issue an Approval in Principle (AIP) certificate. The Liberian Registry, overseeing the world’s largest registered fleet, will further review the validity of these safety procedures.

KIM Yeontae, Executive Vice President of KR’s technical division, said: “With the expected rise in ammonia bunkering demand driven by the construction of more ammonia-fueled vessels, this collaborative effort to establish safety standards is highly significant.”

“Through this partnership, KR is committed to advancing ammonia fuel technology and supporting the industry’s decarbonisation efforts.”

KIM Jungsik, Managing Director of the Korea Office at the Liberian Registry, said, “Just as we observed with the initial adoption of LNG STS bunkering, it is critical to establish regulations and procedures for ammonia as well.”

“Our Innovation and Energy Transition team will thoroughly review the safety protocols and support the development of international standards.”

 

Photo credit: Korean Register
Published: 14 November, 2024

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Bunker Fuel

Hercules Tanker Management plans fleet expansion with new chemical bunker tankers

Firm plans to add up to 10 IMO II Chemical Tankers that will have the ability to supply up to 100% biofuel and all forms of methanol and feature diesel-electric and battery-ready power units.

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Hercules Tanker Management plans fleet expansion with new chemical bunker tankers

Hercules Tanker Management (HTM) on Tuesday (12 November) announced plans to further expand and renew its fleet with six new vessels, and the option to build an additional four, set to be agreed later this year. 

Following last month’s announcement of the construction of four new tankers, HTM, the new shipping venture launched by John A. Bassadone, founder and CEO of independent marine fuel supplier Peninsula, is now adding a further 10 ‘ultra-spec’ vessels, in a 6+4 deal, with the first expected to be delivered in 2026. 

The 7,700 DWT IMO II Chemical Tankers will be sister ships to the four vessels announced previously, and are also being constructed in the Jiangmen Hangtong shipyard in China.

The vessels are described as ‘ultra-spec’ due to their flexible, sustainable design, which aims to minimise emissions.

All vessels will have the ability to supply up to 100% biofuel, all forms of methanol and feature diesel-electric and battery-ready power units, which, combined with advanced hull and propeller design, will reduce emissions by around 20% compared to older conventional barges.

John A. Bassadone, Founder and CEO Hercules Tanker Management and Peninsula, said: “The order of these new vessels marks another important milestone for HTM as we continue expanding and renewing our fleet, closely aligned with the needs of both HTM’s and Peninsula’s customer base.”

“We remain committed to the supply of conventional fuels, but our new assets will achieve this with lower emissions. Equally we anticipate an evolving alternative fuels market, in which we will play a leading role with specialist supply assets.”

Related: Peninsula to time-charter four tanker newbuildings from HTM
Related: Peninsula founder launches shipping firm Hercules Tanker Management
Related: Hercules Tanker Management orders LNG bunkering vessel from Hyundai Mipo

 

Photo credit: Hercules Tanker Management
Published: 14 November, 2024

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