Decarbonisation

DNV on decarbonizing maritime: Overcoming challenges with innovation and ingenuity

Knut Ørbeck-Nilssen says shipping must invest in development of technological solutions that improve energy efficiency to reduce GHG emissions until carbon-neutral bunker fuels become available.

Published

4 weeks ago

September 16, 2024

Admin

Classification society DNV on recently published a Maritime Impact article on Knut Ørbeck-Nilssen, DNV Maritime’s CEO, sharing his reflections on the latest findings of the new Maritime Forecast to 2050 report and how maritime can get closer to achieving upcoming decarbonization goals:

Knut Ørbeck-Nilssen, CEO, DNV Maritime, says shipping must invest in the exploration and development of technological solutions that improve energy efficiency to reduce greenhouse gas emissions until carbon-neutral fuels become available.

Decarbonization is one of the greatest challenges facing shipping. Following a slow start, decarbonization aspirations have been embraced by the maritime industry. IMO goals have been set, notably full-scale decarbonization by or around 2050, a 20% emissions reduction by 2030, and a 70% reduction by 2040.

While these moves have been widely welcomed, it’s time to get real. Setting goals is the easy part. Achieving them is extremely difficult, bordering on the impossible. Indeed, a pragmatic assessment of the shipping industry today indicates that decarbonization is slowing down, not accelerating.

Let’s look at the facts.

The costly transition to carbon-neutral fuels

Full decarbonization will require a large-scale transition to carbon-neutral fuels. This is a huge challenge requiring the construction of new vessels and the retrofitting of existing vessels to enable them to operate on, likely very expensive, green versions of fuels. In a global economy already heavily burdened by inflation and high interest rates, the extra costs associated with this transformation are about as appealing to shipowners as a leaky hull.

Indeed, in an era of higher freight rates, shipowners are understandably seeking to harvest profits and have little incentive to join the queue for limited yard space. While around 50% of new orders today are for ships with dual-fuel capability, constructing them comes at a premium which is difficult to pass along the supply chain. The happy hour for methanol appears to be over already, and the reality is that 93% of the global fleet is still running on conventional fuels.

Even if this technological shift on board the vessels is eventually successful, global supplies of carbon-neutral fuels remain miniscule and shipping needs to compete with other industries for its share. Fuel suppliers are reluctant to invest billions of dollars in projects for which demand is uncertain and, so far, the exponential growth in supply that we need is nowhere to be seen.

But all is not lost yet.

Harnessing technology and cultural changes to drive energy efficiency

Using simulations, this year’s Maritime Forecast to 2050 report by DNV estimates that fuel consumption can be reduced by between 4% and 16% by 2030 using energy efficiency measures.

The first few percentage points can be achieved quite easily. Many maritime companies have already shown that by instilling cultural changes throughout an organization, and by encouraging crew members to seek efficiencies through their day-to-day operations, fuel consumption can be reduced, and emissions reductions of around 5% can be achieved.

However, going to the next level and reaching double-digit energy efficiency requires technological solutions. Technologies like wind-assisted propulsion and waste-heat recovery systems, to name just a few, have already been proven to deliver tangible emissions reductions.

But technology can do even more.

Note: DNV’s full article titled ‘Decarbonizing maritime: Overcoming challenges with innovation and ingenuity’ can be read here.

Photo credit: DNV
Published: 16 September, 2024

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Bunker Fuel

China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October

Global marine bunker development will be among main topics of discussion at the 7th International Petroleum and Natural Gas Enterprises Conference (IPEC).

Published

2 days ago

October 11, 2024

Admin

China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October

The 7th International Petroleum and Natural Gas Enterprises Conference (IPEC) is taking place at Zhoushan, Zhejiang province, China between 16 to 17 October.

The agenda, provided by the Zhoushan High-tech Zone Administrative Committee to foreign event media partner Singapore bunkering publication Manifold Times, is as follows:

16 October

Registration and sign-in for participating guests
Meetings between Zhejiang Provincial and Zhoushan Municipal leaders with VIPs

17 October

Morning

Plenary Session of the Conference (Oriental Hall, Zhoushan International Conference Center)

Leader’s speech, guest keynote speech, signing of major projects

Discussion Topics [*17 October, 2pm to 5pm]

Focus Topic Meeting: Global marine bunker development*
Location: Haitian Hall, Haizhongzhou International Hotel, Zhoushan

14:00-14:05 - Opening of the Meeting

14:05-14:15 - Speech by Leaders

14:15-14:30 - Announcement of "Top Ten Global Bunkering Ports" and "Top Ten Global Bunkering Companies"

14:30-14:40 - Announcement of Construction Work of Northeast Asia Bonded Marine Fuel Bunkering Hub

14:40-14:50 – Launch ceremony of Zhoushan "White-list" Bunker Barge Mass Flow Meter System Pilot Certification Programme

14:50-15:10 - Signing Ceremony

15:10-16:10 - Keynote speech

16:10-16:35 - Coffee break

16:35-17:05 - Roundtable forum (Topic: Facing green and low-carbon transformation in global shipping, how do marine fuels change in response to the trend?)

17:05-17:35 - Roundtable forum (Topic: The road to develop high-quality offshore fuel bunkering metering under the new developments)

17:35-17:40 - Moderator’s summary

Utilising financial innovation, futures and spot cooperation to promote the construction of a hub for the allocation of bulk commodity resources*
Location: Putuo Hall, Zhoushan International Conference Center

Open development of global shipping trade*
Location: Donghai Hall, Hilton Zhoushan

International iron ore trade development*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan

Development of China's new chemical materials industry during the “15th Five-Year Plan”*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan

Development of non-ferrous metal mining industry*
Location: Lianhua Ocean Hall, Hilton Zhoushan

16 and 17 October
International maritime law of the free trade port (zone)
Location: Fortune Hall, Zhoushan CaiFu Hotel

Photo credit: Zhoushan High-tech Zone Administrative Committee
Published: 11 October, 2024

Alternative Fuels

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

‘It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,’ says Vitol’s Head of Asia Mike Muller during a panel discussion.

Published

2 days ago

October 11, 2024

Admin

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

Energy trader Vitol’s Head of Asia Mike Muller on Wednesday (9 October) said the company is anticipating being granted a LNG bunker licence in Singapore soon.

“It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,” he said.

Mike Muller made the announcement during the Viewing the Energy Transition Through the Lens panel discussion at the 23rd Singapore International Bunkering Conference (SIBCON).

“We expect to see growth in LNG use as a bunker fuel for at least another decade, and probably longer,” he added.

On the increasing uptake of biofuels, he said Vitol is seeing demand for biofuel blended bunkers in Singapore roughly doubling every year at the moment, heading for around 1 million mt this year and maybe 2 million mt next year.

“Demand for 100% biofuel from shipping customers is also starting to pick up as of this year and we have led the way in commissioning new IMO type 2 barges to fulfil this demand - indeed an important Asian customer of ours has taken three deliveries of B100 UCOME biofuel just in recent weeks here in Singapore,” Muller explained.

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 20,000m3 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: Vitol
Published: 11 October, 2024

Technology

Study finds OCCS could reduce up to 20% CO2 emissions on “Stena Impero”

Engineering project found that the technology could reduce the vessel’s carbon dioxide (CO2) emissions by as much as 20% per year, with a fuel consumption penalty of just under 10%.

Published

2 days ago

October 11, 2024

Admin

Study finds OCCS could reduce up to 20% CO2 emissions on “Stena Impero”

A project assessing the technical feasibility of onboard carbon capture and storage (OCCS) in the shipping sector has concluded that the technology has the potential to help maritime transport significantly reduce its greenhouse gas emissions, according to a joint statement on Thursday (10 October).

The engineering project analysed the design and cost implications of retrofitting a carbon capture system on the medium-range tanker Stena Impero. It found that the technology could reduce the vessel's carbon dioxide (CO2) emissions by as much as 20% per year, with a fuel consumption penalty of just under 10%.

The project was carried out by the Oil and Gas Climate Initiative (OGCI), the Global Centre for Maritime Decarbonisation (GCMD) and Stena Bulk together with a consortium of maritime organisations.

The project, Realising Maritime Carbon Capture to Demonstrate the Ability to Lower Emissions, (REMARCCABLE) was supported by a consortium comprising American Bureau of Shipping, Alfa Laval, Deltamarin, Lloyd's Register, Seatrium, and TNO. It aimed to assess the viability of deploying carbon capture systems on vessels with minimal impact on operational constraints.

The cost of building and installing the full system on the Stena Impero is estimated at USD13.6 million, with an abatement cost of avoided CO2 for the first-of-a-kind prototype evaluated at USD 769/tonne CO2.

However, the consortium believes that further research and development will drive down costs, making OCCS increasingly viable for the shipping industry.

The study also looked at incorporating OCCS on newbuild vessels, with the findings that improvements to capture rate and fuel penalty may be achieved using more efficient engines, heat pumps, and alternative solvents.

Professor Lynn Loo, CEO of GCMD, said: “OCCS has gained traction in recent years as a feasible approach to meet the 2023 IMO revised GHG emissions reduction targets. However, its adoption faces numerous hurdles, including the need to balance the tension between maximising CO2 capture rates while maintaining commercially acceptable CapEx and OpEx. This study provides quantitative insights on managing the trade-offs between the actual cost of operating OCCS and its emissions reductions potential.

“For OCCS systems to be practical, the industry needs to manage captured CO2 effectively. To this end, GCMD has previously completed a study to define the operational envelope for offloading onboard captured CO2, contributing to the whole-of-system approach to emissions reduction via carbon capture.”

Photo credit: Global Centre for Maritime Decarbonisation
Published: 11 October, 2024