Alternative Fuels

DNV ‘Live from Singapore’ webinar discusses operational efficiency and biofuel bunkers

GCMD study needs to show how maritime industry can cope with expected “lower energy density” of biofuel and how it impacts accessibility of biofuels for bunkering worldwide, says Sanjay Kuttan.

Published

2 years ago

February 17, 2023

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“Do what we can now, with what we have!” This was the clear message on maritime decarbonization in a recent ‘Live from Singapore’ webinar organized by classification society DNV.

The panel explored strategies and practical solutions to decarbonize existing fleets, and how the industry can work together to solve this common challenge.

While fleet owners and operators are facing immense pressure, webinar panellists admitted that things will take time, and time is not on the side of shipping – and all other industries – to make the monumental changes to reach Net Zero goals, or at least halve emissions from international shipping by 50 percent until 2050.

Optimizing energy efficiency of existing fleets

Despite the huge challenges, panellists agreed there is a lot we can do right now that can make a big difference.

Ship operators can cut emissions immediately by introducing smart energy efficiency measures and it is possible to bunker low-carbon biofuels without having to make any changes to fuel tanks or engines.

Anglo American’s Global Head of Shipping Peter Lye told the audience that his company was already working on a number of ways to reduce carbon intensity in its ocean freight operations. For example, it had successfully trialled (in mid-2021) a biodiesel blend, produced in Singapore from waste cooking oil, to power one of their charter vessels during a voyage to South Africa.

Fellow panellist François-Xavier Accard, Managing Director of CMA CGM International Shipping, didn’t disagree, but made it clear that there was “not one solution”. Alternative fuels must be an important part of the mix, but we must not lose sight of the need for greater operational efficiency, including managing ship routing. He also called for more to be done to harmonize regulations for all in the maritime industry.

DNV’s representative on the panel – Girish Sreeraman, Area Business Development Manager for Southeast Asia and the Indian Subcontinent –could not go past the word “collaboration” to sum up the importance of addressing decarbonization for the maritime sector.

On alternative fuels, he made it clear that much more investment was needed, while optimization of vessels’ performance was a move in the right direction by IMO. With its Carbon Intensity Indicator (CII), ship operators needed more time to meet the reporting requirements.

More transparency needed

Sanjay Kuttan, Chief Technology Officer at the Global Centre for Maritime Decarbonization (GCMD), explained that it was vital to share data and lessons learned from the CII implementation. Without transparency, the wider industry was not going to be able to collectively apply what’s needed or adapt technology to make a meaningful difference.

Mr Accard from CMA CGM did caution to say that some of the data collected is “sensitive” and not all of it can be freely shared. Admittedly, it is important to collect all relevant data from the vessels, he said, regarding speed, fuel use, energy efficiency measures taken. But he insisted that the regulations must be clear and must be applied to all.

Mr Lye of Anglo American pointed out that transparency and sharing of relevant data is important to customers and the whole supply chain. “They need to know that what we’re doing works for them. And they have a right to demand information if they are expected to be paying more.”

Biofuels to bridge the gap

Biofuels certainly received a lot attention from panellists and the virtual webinar attendees, whose questions were ably moderated by host Yvonne Chan.

It fell to Mr Kuttan to tackle many of the biofuel questions because his organisation GCMD is in the middle of a study which aims to establish an assurance framework that ensures supply chain transparency of drop-in biofuels, whose applicability can be extended to future drop-in fuels.

He explained that it covers bio-LNG, bio-methanol, and green ammonia, when they become available in meaningful quantities, but also focuses on currently available biofuels, like biodiesel from used cooking oil and agricultural wastes.

It was important to understand all aspects of biofuels, including availability, accessibility, supply and demand, as well as the potential to scale up production.

Mr Kuttan said he is “very encouraged” by the results of the survey with webinar participants which showed that by far the majority were either already using biofuels, committed to, or planning to commit to biofuels in the near future.

Verifying the supply chain of biofuels

The industry and its customers needed to be reassured that the use of biofuels can be measured for the genuine reduction of greenhouse gas (GHG) emissions, Mr Sreeraman said.

If the source and the supply chain can be reliably verified, biofuels could become 100% carbon neutral fuel for vessels. There must be clear guidelines, though, and acceptable international standards.

Mr Kuttan was asked if he considered that the International Sustainability Carbon Certification (ISCC) was the best means to verify the source and supply chain of approved biofuels.

He told the audience that GCMD was fully evaluating all certification standards, including ISCC – which was designed in Europe to provide sustainability solutions for fully traceable and deforestation free supply chains – and has already been applied to biofuel supply in Europe and Asia.

He also made the point that the GCMD study needs to show how the maritime industry can cope with the expected ”lower energy density” of biofuels, and how this impacts the accessibility of biofuels for bunkering in different parts of the world.

Ambition, collaboration, harmonization, action

Moderator Yvonne Chan concluded the very fruitful discussion by asking each panellist for a buzzword or two as a key take-away for all participants:

For CMA CGM’s François-Xavier Accard, it was the need for “harmonized regulations for all.”

Peter Lye, for Anglo American, summed it up in one word: “ambition’.

DNV’s Girish Sreeraman reinforced the need of “collaboration”.

It was left to Sanjay Kuttan to elaborate – and take us back to the beginning – with his summary: “Bend the curve. Do what we can now, with what we have!”

If you missed the webinar episode, you may access it here.

Photo credit: DNV
Published: 17 February, 2023

LNG Bunkering

Singapore: MPA launches EOI to expand LNG bunkering services amid growing demand

MPA is seeking proposals to explore scalable solutions for sea-based LNG reloading to complement existing onshore LNG bunkering storage and jetty capacities and e/bio-methane supply as a marine fuel.

Published

1 day ago

December 13, 2024

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The Maritime and Port Authority of Singapore (MPA) has launched an Expression of Interest (EOI) to explore scalable solutions for sea-based liquefied natural gas (LNG) reloading to complement the existing onshore LNG bunkering storage and jetty capacities and the supply of e/bio-methane as marine fuel in the Port of Singapore.

MPA said LNG bunkering in Singapore has grown from 16,000 tonnes delivered in 2022 to over 385,000 tonnes delivered from January to October 2024.

According to the EOI, demand for LNG bunkering is expected to grow further with a growing global fleet of LNG dual-fuelled vessels and competitive LNG bunker prices.

“The EOI seeks to gather proposals on three areas: to scale up sea-based reloading operations, including ship-to-bunker barge LNG operations; to facilitate the supply of LNG alternatives such as liquefied bio-methane; and to develop floating platform concepts to enhance bunkering safety and efficiency,” MPA added.

“The EOI proposals should also include mitigation measures to address the issue of methane slip on a well-to-wake basis.”

Participants in the EOI do not need to be an existing LNG bunkering licensee. Participants are required to propose models for operationalising sea-based LNG reloading starting from 2025. Participants selected will be required to conduct trials in Singapore to validate the proposed solution’s operational feasibility and safety.

“Insights gained from the EOI and trials will inform MPA’s review of the LNG licensing framework, including enhancements to supply to better serve the industry’s bunkering needs,” it said.

Note: Interested parties can visit the MPA website for details and submission guidelines. Proposals must be submitted by 28 February 2025, 1pm (Singapore time).

Photo credit: Manifold Times
Published: 13 December, 2024

LNG Bunkering

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Firm will supply cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel currently being built at Nantong CIMC Sinopacific Offshore & Engineering shipyard in China.

Published

1 day ago

December 13, 2024

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Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Wärtsilä Gas Solutions, part of technology group Wärtsilä, on Friday (13 December) said it has won a contract to supply Cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel.

The vessel is being built at the Nantong CIMC Sinopacific Offshore & Engineering shipyard in China, for global energy company Vitol.

“Wärtsilä’s ability to engineer, design and deliver a complete system, including the Boil-Off Gas (BOG) management, integrated fuel supply, custody transfer and bunkering transfer systems, was central to the contract award,” Wärtsilä said, adding the order was booked by the company in Q4, 2024.

Richie Zhu, Sales Manager, Wärtsilä Gas Solutions, China, said: “LNG is today an important marine fuel and is rapidly becoming the preferred choice for owners and operators seeking more sustainable fuel options. The market for LNG bunkering vessels is increasing in line with this trend, and we have established a leading position in supplying modern and reliable systems that optimise overall cargo handling efficiency for such vessels.”

Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

The time charter agreement with Avenir is for one newbuild 20,000 m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total.

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Photo credit: Wärtsilä
Published: 13 December, 2024

Newbuilding

UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

Vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from CIMC Raffles Offshore Engineering.

Published

1 day ago

December 13, 2024

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UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

United European Car Carriers (UECC) on Wednesday (11 December) said it has further expanded its fleet of eco-friendly car carriers with the addition of the dual-fuel LNG newbuild Blue Aspire.

The vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from a Chinese shipyard.

The 200-metre long Pure Car and Truck Carrier (PCTC), delivered from CIMC Raffles Offshore Engineering, has capacity for nearly 7000 vehicles on 12 cargo decks.

UECC will operate the vessel together with another five vessels on a route between the Mediterranean and Northern Europe, traversing the Turkish ports of Yenikoy and Autoport, the German port of Cuxhaven, and Zeebrugge, Belgium every 4.5 days.

“Deployment of the Blue Aspire will boost tremendously capacity and sailing frequency on this busy trade route, currently serviced by five vessels, while further enhancing the sustainability of the UECC fleet,” said the company’s COO Per Christian Mørk.

The latest fleet addition will increase to six the number of UECC-operated vessels plying the North-South network, taking in a total of 10 ports on two routes, after the recent deployment of the renamed Auto Way that was acquired by UECC’s joint owner Wallenius Lines from Höegh Autoliners earlier this year.

It will also boost the size of UECC’s owned and chartered fleet to 15 PCTCs, including five dual and multi-fuel LNG vessels - three with battery hybrid capability - delivered in the past decade, with another two multi-fuel LNG newbuilds currently on order that are set for delivery in 2028 and options for two similar units.

“We are expanding our fleet with greater capacity and cargo-carrying flexibility to provide a more efficient service for clients in response to increasing demand as we see longer-term growth potential in this market,” Mørk explained.

Mørk said sustainability is now a key priority in procurement of maritime transport services to meet the environmental goals of vehicle manufacturers amid new green regulations - including FuelEU Maritime and the EU ETS - that provide a commercial incentive to reduce the cost of GHG emissions.

“UECC is catering to this market requirement with an eco-friendly fleet geared to minimizing the environmental footprint of vessel operations with progressive reductions in carbon intensity, in line with regulation, through adoption of energy-efficient technologies and alternative fuels,” he says.

Mørk noted that, while LNG can reduce emissions by around 25% compared with conventional fossil fuels, there is potential to greatly enhance environmental performance on LNG-fuelled vessels like Blue Aspire by switching to liquefied biomethane (LBM) that offers net-zero potential.

UECC is now increasing application of the latter fuel on its dual-fuel LNG PCTCs after recently securing an LBM supply agreement with Titan Clean Fuels that is forecast to cut its overall fleet emissions by 75,000 tons in 2025.

“The Blue Aspire therefore represents a valuable addition to the UECC fleet that underpins our market commitment to sustainability, while contributing to decarbonization of shipping,” Mørk concludes.

Photo credit: United European Car Carriers
Published: 13 December, 2024