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Alternative Fuels

DNV: Orders for alternative fuel vessels slows down in March

Some 10 vessels with alternative fuels propulsion were ordered in March 2023, eight of which were for LNG driven vessels; no new methanol orders but there’s an order for two hydrogen powered vessels.

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Latest figures from DNV’s Alternative  Fuels Insight (AFI) platform showed orders for alternative fuelled vessels in March slowing down slightly compared to February. 

March saw 10 vessels with alternative fuels propulsion were ordered in March 2023, eight of which were for LNG driven vessels. There were no new methanol orders, but the month saw an order for two hydrogen fuelled container feeders with fuel cells.  

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Martin Wold, Principal Consultant in DNV’s Maritime Advisory business, commented:  “March proved a slightly slower month for orders of alternative fuelled vessels compared to February, though the growth in LNG orders continues at a steady pace.”

“The standout news last month was the addition of two hydrogen powered vessels to the order books, showing the growing interest in H2 as fuel for short sea shipping.”  

“We are excited to have recently upgraded our AFI platform including new fuel types, improved fuel price monitoring, and a crowdsourcing feature to gain input from its users. By opening up the platform we aim to encourage collaboration and data transparency and ultimately support the industry in achieving cleaner, green shipping,” Wold added. 

Related: DNV upgrades AFI platform with new bunker fuel types and improved price monitoring
Related: DNV Alternative Fuels Insight shows ‘significant’ orders for alternative fuel vessels in February
Related: DNV: No new confirmed orders for LNG-fuelled ships in January
Related: DNV: LNG fueled ships led total 2022 orders for ships with alternative bunker fuels
Related: DNV: Container vessels and car carriers constitute two thirds of new LNG-fuelled vessel orders

Photo credit: DNV
Published: 5 April, 2023

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LNG Bunkering

South Korea’s HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping.

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South Korean HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction (HJSC) has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping. 

The contracted vessel is a large-scale LNG bunkering ship measuring 144 meters in length, 25.2 meters in width, and 12.8 meters in depth. It is capable of supplying up to 18,000㎥ of LNG in a single operation to LNG-fuelled ships. 

Equipped with two independent LNG tanks certified by the International Maritime Organization (IMO), the vessel features a dual-fuel propulsion system that allows it to operate on both eco-friendly LNG and marine diesel oil. This advanced system ensures both stability and operational efficiency while effectively reducing carbon emissions.

Yoo Sang-cheol, CEO of HJSC, said, “As global LNG demand and supply continue to grow, the LNG bunkering vessel market will see steady expansion.” 

“We will focus on strengthening our expertise in building eco-friendly, high-value-added ships, securing a competitive edge that aligns with our legacy as a leader in shipbuilding.”

This achievement follows the company's success in 2014 when it built the world’s first 5,100㎥ LNG bunkering vessel for Japan’s NYK Line.

“This accomplishment also reinforces South Korea’s shipbuilding industry's efforts to enhance competitiveness by securing high-efficiency, environmentally friendly vessels in the global market,” HJSC said. 

“Notably, with the anticipated expansion of oil and natural gas drilling and the resumption of LNG exports under the second Trump administration in the US, the market for crude oil carriers, LNG carriers, and LNG bunkering vessels is expected to see significant growth.”

“This trend is likely to benefit the country’s highly competitive shipbuilding industry.”

 

Photo credit: HJ Shipbuilding & Construction
Published: 12 February, 2025

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Methanol

India’s first bio-methanol bunker barge to be part of new bunkering facility project

Construction of the bunker barge is part of a MoU between Bapu’s Shipping Jamnagar and Deendayal Port Authority to develop a methanol bunkering facility at Kandla.

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India’s first bio-methanol bunker barge to be part of new bunkering facility project

India’s shipping company Bapu’s Shipping Jamnagar on Sunday (9 February) announced it has signed a Memorandum of Understanding (MoU) with Deendayal Port Authority on 8 February to develop a methanol bunkering facility at Kandla. 

The firm said the construction of India’s first bio-methanol bunker barge will be a key part of this initiative to cater to the growing requirement for sustainable maritime fuel. 

“India’s first methanol bunker barge will be constructed at Deendayal Port, marking a significant step in accelerating green shipping and decarbonisation,” said Bhupendra Sinh Jadeja, Managing Director of Bapu’s Shipping. 

“With global ports like Shanghai, Ulsan, Singapore, and Rotterdam advancing methanol bunkering, India is stepping up! Deendayal Port Authority has committed to providing necessary infrastructure support to fast-track the bunker supply chain.”

“We are honoured to be their channel partner in this transformative journey.”

 

Photo credit: Bapu’s Shipping Jamnagar
Published: 12 February, 2025

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Alternative Fuels

Argus Media: California aims to expand alternative bunker fuels

State senate bill 298, introduced by state senator Anna Caballero, would require a plan to be developed by 31 December 2030 for use and deployment of alternative marine fuels at California’s public seaports.

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California lawmakers will consider expanding alternative marine fuels use by ocean-going vessels on the state's coast.

12 February 2025

State senate bill 298, introduced by state senator Anna Caballero (D), would require the California State Energy Resources Conservation and Development Commission (Energy Commission), the California Transportation Agency and the state board to develop a plan by 31 December 2030 for the use and deployment of alternative fuels at California's public seaports.

The plan should identify significant alternative fuel infrastructure and equipment trends, needs, and issues and describe how the state will facilitate permitting and construction of infrastructure to support alternative fuels. The plan should also identify locations for alternative fuel infrastructure, provide a reasonable timeline for its installment and estimate the costs, including public or private financing opportunities.

The bill also calls for the Energy Commission to convene a working group consisting of representatives of seaports, marine terminal operators, ocean carriers, waterfront labor, cargo owners, environmental and community advocacy groups, the Transportation Agency, the state board, the Public Utilities Commission, and air quality management and air pollution control districts. The working group will advise the commission.

The US territorial waters, including California's, are designated as emission control areas (ECAs). In the ECAs, the sulphur content of marine fuel burned by ocean-going vessels is capped at 0.1pc. Thus ocean-going vessels within 24 nautical miles of California burn 0.1pc sulphur maximum marine gasoil (MGO). Ocean-going vessels could achieve the equivalent of 0.1pc sulphur marine fuel emissions by installing marine exhaust scrubbers. But California has banned their use. California is the only US state that has banned the outright use of marine scrubbers.

California also requires that ocean-going vessels while at berth in California ports must either use shore power or use alternative technology such as batteries. The regulation came into force for container ships, reefers and cruise ships in 2023. It came into force this January for tankers visiting Los Angeles and Long beach and for roll on roll off vessels. Starting on 1 January 2027, it will apply to all tankers at berth in all California's ports.

US harbor craft vessels (such as barges, commercial fishing vessels, excursion vessels, dredgers, pilot vessels, tugboats and workboats) in California's waters are required to burn renewable diesel (R99 or R100). By comparison, elsewhere in the US, harbor craft vessels are required to burn ultra-low sulphur diesel (ULSD). In January, Los Angeles ULSD averaged at $773/t and R99 at $962/t.

By Stefka Wechsler

 

Photo credit and source: Argus Media
Published: 12 February, 2025

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