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Dubai: Shipowners and peers discuss realities of biofuel adoption at VPS Biofuels Seminar

ADNOC L&S, Gulf Energy Maritime, Cockett Marine Oil, Mideast/Bahri Ship Management and VPS experts present their views on biofuel bunker hurdles at the VPS Biofuels Seminar in Dubai on 16 March.

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VPS Biofuels Seminar Dubai

Challenges of adopting biofuel as part of shipping’s decarbonisation drive were amongst topics discussed by expert panelists at the VPS Biofuels Seminar in Dubai on Thursday (16 March).

The session found local United Arab Emirates-based players already engaging in respective emission reduction trials before IMO 2030 – with many arriving at their own set of conclusions.

ADNOC L&S – Embracing biofuels in the ‘year of sustainability’ 

Eng Khalid Al Shehhi, Marine Projects Manager, ADNOC L&S noted the maritime logistics arm of ADNOC Group already adopting biofuels for certain commercial operations on the back of “very successful” biofuel trials completed earlier in 2020.

He noted relationship with OEMs as key to supporting ADNOC L&S’ plan of using B20 biofuel; however, the company eventually decided to commit to B5 biofuel even though vessels initially passed B20 trials.

“One of the primary challenges in adopting alternative fuels [biofuel] is the high cost when compared to conventional fossil fuels. As a consequence of our biofuel trials, we determined B5 blend as being more suited for our operating model and emission reductions aim,” he said.

Eng Khalid noted 2023 to be the “year of sustainability” for the UAE due to the upcoming 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28) to be held in the region.

“Our efforts at ADNOC L&S are motivated by ADNOC sustainability targets for 2030 and IMO future emissions reduction targets; for this, we are investigating viable decarbonisation alternatives, with biofuels serving as a viable drop-in option.”

Gulf Energy Maritime – Alternative marine fuels ‘a gamble’ for shipowners

Rajeev Gupta, Head of Fleet, Gulf Energy Maritime (GEM) said shipowners such as themselves are facing challenges sourcing for alternative bunker fuels even though the sector has been focusing on decarbonisation.

“It’s not an easy decision selecting the engine for a newbuilding today but I would probably go for a dual fuel LNG engine just because there is some infrastructure for bunkering LNG,” said Rajeev.

“As Eng Khalid mentioned, cost is certainly an issue and it’s not an easy decision for an operator to take that extra cost because the charterers are not going to pay extra for more expensive bunker fuel.” 

He noted methanol to be a marine fuel favouring chemical tankers but showed apprehension to ammonia being used as a bunker fuel due to its potential dangers.

“It’s a multi-faceted problem and there are no quick solutions that are cheap and easily available; so, I would say it’s a gamble,” highlighted Rajeev.

“IMO is implementing the regulation but the governments and port states are still far behind in implementing the infrastructure to be able to provide these fuels. 

“Unfortunately, the owners become the guinea pigs of having to comply with the regulation, install an engine, but then go searching around the world for suitable fuel.”

Cockett Marine Oil – Biofuels a ‘chicken and egg’ situation

Colin Holloway, Global Head-Technical, Cockett Marine Oil meanwhile noted the firm experiencing a lack of mainstream demand for alternative bunker fuels, including biofuels, but believed marine fuel suppliers will gladly provide avails when enquiries increase.

“I think we’ve already got the idea that it’s a chicken and egg situation. To be honest, to date, we don’t see very much enquiries for biofuel in the UAE and because of that, there’s probably not much availability,” shared Holloway.

“There are a few minor suppliers that are supplying biofuel by truck where you can purchase biodiesel [i.e. B5, B15, etc] but in the interim we can say demand for biofuels have not picked up in the main stream bunker business.

“There is availability for biofuel but not on the scale that is probably needed at this time. However, I am sure the trading companies will supply when demand hits and especially when EU regulations bite from 2024 onwards.”

Mideast/Bahri Ship Management – Adopting a ‘wait-and-see’ approach towards biofuels 

Hendrik Atsma, Snr Manager, Mideast/Bahri Ship Management, noted the company has currently applied a wait-and-see approach towards the adoption of biofuels as bunkers for its fleet.

Though certain countries have been implementing subsidies to assist local shipowners in adopting biofuels for their fleets, Atsma felt biofuels do not present a complete solution towards decarbonisation due to potential environmental issues such as deforestation. So, footprint and fingerprint of biofuels sources will be important.

“We do our research for biofuels and are also in talks with engine makers and bunker suppliers,” he said.

“At some point, we even had the idea of starting a trial although unfortunately we decided not to go ahead because of liability issues. We will wait and see what some of the other major players are doing.”

VPS – Biofuel carriage misalignment of flag states, port authorities present hurdle 

Captain Rahul Choudhuri, Managing Director for Asia, Middle East & Africa (AMEA) at VPS, who was moderating the session, called attention to the current misalignment of biofuel policies between flag states and port authorities as a hurdle for its adoption as a marine fuel.

IMO’s Marine Environment Committee in June 2022 approved a new Unified Interpretation (UI) on the application of regulation 18.3 MARPOL Annex VI in relation to biofuels, allowing biofuel blends up to B30 be regarded in the same way as regular oil-based fuels.

“The current MARPOL Annex II allows carriage of up to 24% FAME; however in principle, if you’re above that limit, then as a bunker tanker or bunker barge, you can’t carry it unless you have a chemical tanker notation,” explained Captain Choudhuri.

“Whereas for example, Singapore has implemented a biofuel standard called the WA 2:2022 which allows carriage of up to 50% FAME. 

“That brings the position of flag states into play because at the moment vessels, owners and operators need flag state approval before they carry and burn biofuel. This means though Singapore is fine with its bunker tankers and flagged vessels burning biofuels, the other flags might not be agreeable.

“There’s a need for MARPOL, port authorities and flag states to align respective policies, including the Life Cycle Assessment (LCA) & CII (Carbon Intensity Indicator) on the carriage of biofuels because this difference will be a potential hurdle when the product becomes a mainstream bunker fuel.”

Related: VPS to hosts round table meet on biofuel bunkers and its challenges in Greece in March
Related: Singapore: VPS panel discussion presents a masterclass in shipping’s biofuel bunker adoption issues to the deck
Related: GCMD-led consortium completes trials of sustainable biofuel bunker supply chains
Related: VPS: Shipowners turn to ‘highly reactive’ Cashew Nut Shell Liquid (CNSL) biofuel blends for marine fuel
Related: VPS organises seminar on biofuel bunkers in Singapore
Related: VPS launches APS-BIO offering biofuels protection service against potential damage

 

Photo credit: VPS
Published: 22 March, 2023

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Biofuel

Chimbusco and SPG complete first biofuel bunkering operation in Northern China

Chimbusco’s “DA YUAN YOU 8” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes of B24 biofuel at Qingdao Port.

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Chimbusco and SPG achieves first biofuel bunkering operation in Northern China

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) and Shandong Port Group (SPG) recently said they successfully completed the first B24 biofuel bunkering operation in Northern China on 14 June.

Chimbusco’s “DA YUAN YOU 8 ” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes (mt) of B24 biofuel at Qingdao Port.

Chimbusco said the successful bunkering operation not only marks a milestone in the bonded biofuel bunkering business for international voyage vessels in northern China but also represents a critical milestone in the green and low-carbon transformation of the shipping industry around the Bohai Sea and throughout northern China. 

B24 biofuel is a blend of 24% waste cooking oil and 76% high-sulphur fuel oil. Authoritatively certified, the company said this fuel can significantly reduce carbon emissions from vessel operations by up to 20%, providing shipowners with an efficient and convenient low-carbon solution to comply with increasingly stringent International Maritime Organization (IMO) emission reduction regulations. 

Since the beginning of this year, Chimbusco said it has achieved top records of bunkering volumes in the green fuel sector. From the first successful operation at Ningbo-Zhoushan Port in eastern China to subsequent bunkering operations in Shenzhen, Xiamen, and other major ports across the country, the company has further consolidated its regular supply capabilities. 

During this in-depth cooperation with SPG’s Qingdao Port, Chimbusco’s “Green Energy Label” made its debut at the operation site. 

“This further confirms that Chimbusco is deploying green fuel bunkering services to help Chinese ports accelerate the construction of a maritime green energy supply network,” the company said. 

 

Photo credit: Shandong Port Group
Published: 20 June, 2025

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Ammonia

Korea to develop global standards for discharge of toxic effluent from ammonia-fuelled ships

KR and major Korean shipyards such as HD Hyundai Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Samho and Samsung Heavy Industries will be part of the group.

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Korea to develop global standards for discharge of toxic effluent from ammonia-fuelled ships

Classification society Korean Register (KR) said it has launched a joint working group to establish international standards for the safe discharge of toxic ammonia effluent generated from ammonia-fuelled ships.

Major Korean shipyards such as HD Hyundai Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Samho, Samsung Heavy Industries, Hanwha Ocean, and the Korea Testing & Research Institute (KTR) will be part of the group. 

KR said ammonia is attracting attention as an eco-friendly alternative fuel that does not emit carbon dioxide, a greenhouse gas, but due to its strong toxicity and concerns about marine pollution, it is essential to establish separate safety standards. 

In particular, ammonia effluent generated from wet treatment systems currently has no clear treatment standards, which causes considerable technical and operational uncertainty in ship design and operation.

Accordingly, the group aims to establish international standards related to the storage, treatment, and discharge of ammonia wastewater generated from ships and to officially propose this to the International Maritime Organization (IMO) through the Korean government.

The launch of this consultative body is a follow-up measure to a proposal by KR and the Korean government to the IMO in 2024 for the need to establish safety standards for ammonia effluent, which was officially approved at the 83rd IMO Marine Environment Protection Committee (MEPC) in April 2025. The group plans to propose a draft standard to the IMO in 2026 and lead international discussions.

Kim Tae-seong, Head of the KTR headquarters, said: “We will provide reliable scientific data to establish ammonia wastewater management guidelines and treatment standards. We will actively cooperate to secure the international competitiveness of the domestic shipbuilding and shipping industries.”
Kim Kyung-bok, Vice President of KR, said: “This consultative body is a symbolic case of our shipbuilding and shipping industries joining forces to lead the establishment of international safety standards based on our country’s advanced technologies.”

“KR will continue to support the development of alternative fuel safety standards and international standardisation efforts together with our government.”

 

Photo credit: Korean Register
Published: 20 June, 2025

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Alternative Fuels

Fratelli Cosulich and IINO Lines to collaborate on alternative bunker fuels

Fratelli Cosulich Marine Energy and IINO Lines signed a MoU, setting a foundation for further collaboration in the areas of methanol, LNG, and ammonia bunkering.

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Fratelli Cosulich Marine Energy and IINO Lines on Thursday (19 June) announced a strategic cooperation that reinforces their shared commitment to the decarbonisation of the maritime industry.

The two companies have signed a Memorandum of Understanding (MoU) to explore new business opportunities in the alternative marine fuels sector. 

“This agreement marks a significant step in the long-standing relationship between the two companies and sets the foundation for further collaboration in the areas of methanol, LNG, and ammonia bunkering,” Fratelli Cosulich said. 

Through the MoU, the parties will engage in joint initiatives, exchange market insights, and facilitate connections with potential suppliers and stakeholders in the alternative fuels space. 

“We are proud to announce the partnership with Fratelli Cosulich for initiatives in alternative marine fuels. Both companies have extensive history in the shipping industry,” said Yusuke Otani, President of IINO Lines. 

“The joint development will enable a holistic approach for building a supply chain of alternative marine fuels.”

“As we navigate the energy transition, partnerships like the one we announce today with IINO Lines are essential in shaping the future of sustainable shipping,” said Timothy Cosulich, CEO of Fratelli Cosulich Group. 

“By combining our expertise and resources, we aim to drive the adoption of cleaner marine fuels and contribute to the decarbonization of global shipping.”

 

Photo credit: Scott Graham
Published: 20 June, 2025

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