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ENGINE on The Week in Alt Fuels: Trump doctrine could favour blue hydrogen

Trump’s recent executive orders are unlikely to impact existing tax incentives for low- and zero-emission fuel production in the US, but they may redirect focus from green to blue fuels.

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Trump’s recent executive orders are unlikely to impact existing tax incentives for low- and zero-emission fuel production in the US, but they may redirect focus from green to blue fuels.

US President Donald Trump recently issued an executive order to pause all unspent federal funding tied to the Inflation Reduction Act (IRA). Federal agencies now have 90 days to report how these funds align with the administration's broader energy goals to the Office of Management and Budget and the National Economic Council.

This order has raised questions about its potential impact on the US low- and zero-emission fuel production sector. But some experts suggest that the move is unlikely to harm the existing tax subsidies for clean fuel production under the IRA.

"All spending on Inflation Reduction Act and IIJA (Bipartisan Infra Law) ordered to be stopped by Trump Executive Order. I assume this applies to unspent discretionary grants and loans like most (all?) of DOE LPO and GDO, but not tax credits,” said Rob Gramlich, president of power-grid consultancy Grid Strategies. He added that stopping mandatory grants would venture into legal complexities under the impoundment law, which requires such funds to be spent unless overridden by the Supreme Court.

IRA tax credits like 45V for green hydrogen and 45Q for carbon capture promote the production of green and blue hydrogen-based fuels in the US by reducing the production cost of these fuels.

These subsidies could benefit several green and blue fuel projects in the US that could produce hydrogen-based fuels for the bunker market. For instance, Methanex and Woodside Energy are developing green methanol and blue ammonia production in Beaumont. HIF Global is building an e-methanol plant in Matagorda County, and LSB Industries has plans for a blue ammonia plant near the Houston Ship Channel.

Removing tax credits will raise low-carbon fuel production costs and contribute to keep price gaps with fossil fuels wide.

But since they are already enacted, removing them would require further congressional action, which could “prompt legal challenges,” according to Robert Moczulewski, senior director at tax advisory firm Baker Tilly.

Gerben Hieminga, senior energy sector economist at ING, believes that “hydrogen and CCS tax credits can survive and continue to play a crucial role in reducing costs” under the Trump administration. In fact, they may even see “loosened eligibility criteria,” which can help to reduce costs, he added.

He also noted that the freeze could impede funding for green hydrogen technologies such as electrolysers, but Trump's focus on natural gas and carbon capture and storage (CCS) might boost blue hydrogen production.

“Blue hydrogen is likely to dominate green hydrogen, allowing the industry to grow more significantly due to the larger scale of blue hydrogen projects,” he said, estimating US blue hydrogen production could reach 4.8 million mt/year by 2030, compared to only 1.2 million mt/year of green hydrogen.

While tax credits may survive Trump's presidency, Hieminga cautions that uncertainties around “tax credit guideline finalisation, non-credit funding, and government-enabled hydrogen development programmes can slow down project development.”

In other news this week, Spanish project developer Reolum plans to build a plant to produce 140,000 mt/year of e-methanol for bunkering and other industries. The plant will be located in the Castilla y León region of northwestern Spain and is expected to become operational by 2027.

Swedish e-fuel company Liquid Wind plans to build another 100,000 mt/year e-methanol production plant in Finland. The fuel produced will primarily be supplied to the maritime and aviation sectors. Commercial operations are expected to begin in 2029.

Global marine fuels supplier Monjasa will start supplying biofuel bunker blends in the Panama Canal area. Monjasa will offer ISCC-certified B30-VLSFO blends in Panama, the company said in a social media post. It expects to supply about 5,000-7,000 mt/month.

By Konica Bhatt

 

Photo credit: Venti Views on Unsplash
Published: 27 January, 2025

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Methanol

CMA CGM, SIPG and Shanghai Electric Group join forces on green methanol bunkering

Companies signed a long term supply cooperation deal to develop a fully integrated green methanol value chain, which is expected to propel Shanghai into a regional green methanol bunkering hub.

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CMA CGM, SIPG and Shanghai Electric Group join forces on green methanol bunkering

French shipping giant CMA CGM on Friday (21 March) said it has signed a green methanol long term supply cooperation agreement with SIPG Energy and Shanghai Electric Group on 20 March to develop a fully integrated green methanol value chain. 

The agreement is expected to accelerate Shanghai Port's development into a regional green methanol bunkering hub, securing its first-mover advantage in the low-carbon transformation of shipping and further consolidating Shanghai's leadership in global maritime trade.

“This collaboration underscores CMA CGM's leadership in maritime decarbonisation and strengthens our partnership with major Chinese partners,” the company said. 

Under the agreement, Shanghai Electric Group will provide mid-to-long-term green methanol fuel supply for CMA CGM. In partnership with SIPG, green methanol will be transported via land-sea combined logistics from Shanghai Electric’s production base in Taonan to Shanghai Port, the world's largest container port. 

Shanghai Electric said the agreement will form a complete “production-transportation-bunkering” chain. The company further elaborated that its Taonan project is an important foundation for it in the field of hydrogen-based green fuels. 

CMA CGM, SIPG and Shanghai Electric Group join forces on green methanol bunkering

Firmly committed to the energy transition in shipping and  its use of alternative marine fuels, CMA CGM said it has set a Net Zero-Carbon target for 2050.

Last month, CMA CGM IRON, the group's first dual-fuel methanol made its maiden call in Singapore. With a container capacity of 13,000 TEUs, it is the first in a series of 12 new dual-fuel methanol vessels for CMA CGM.

“At CMA CGM, we address the challenges related to the availability of clean fuels. Our partnership strategy drives us to implement innovative and sustainable solutions to achieve our energy transition objectives,” said Farid Trad, Vice President of Bunkering & Energy Transition of CMA CGM Group. 

“Our landmark collaboration with SIPG and Shanghai Electric Group marks a new milestone and shows our commitment to Net Zero-Carbon by 2050.”

 

Photo credit: CMA CGM
Published: 21 March, 2025

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Events

China: Speaker lineup revealed for Green ShipTech Innovation Asia Summit 2025

Key issues that will be discussed at event include low-carbon ship construction and transformation, latest green technology equipment, alternative marine fuel selections and supply status.

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Green ShipTech Innovation Asia Summit 2025 to be held in Shanghai on 16 May

Shine Consultant, the organiser of Green ShipTech Innovation Asia Summit 2025, on Thursday (20 March) announced the line-up of speakers for the event to explore the new trends in the shipping industry. 

With over 300 attendees expected to attend, the Green ShipTech Innovation Asia Summit 2025 will be held in Shanghai, China, on 16 May. 

Themed Diversified Innovation for Sustainable Green Transformation, the summit will host a main forum called Green Development Strategies and Pioneer Practices Towards Zero Carbon Goals and two sub-forums, Green Shipbuilding and Retrofitting Forum and Green Shipping Ecosystem Cooperation Forum. 

It will focus on key issues such as low-carbon ship construction and transformation, the latest green technology equipment, alternative marine fuel selections and supply status and digital ship management technology. 

Speakers for the summit include:

  • Li Zhengjian, Chief Expert/Senior Engineer, the Chinese Society of Naval Architects and Marine Engineers
  • Karim Fahssis, Decarbonization China Head, Maersk
  • Lu Yanhui, Vice President, COSCO Shipping Heavy Industry Co., Ltd
  • Liu Jianfeng, Chief Technologist, Shanghai Waigaoqiao Shipbuilding Co., LTD.
  • Li Zhonggang, Vice President, China Ship Design & Research Center Com.,Ltd.(CSDC)
  • Bo Cerup-Simonsen, CEO, Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping
  • Keiichiro Nakanishi, Managing Executive Officer, MOL(Mitsui O.S.K. Lines, Ltd.)
  • Sun Haihua, Deputy Director of Shanghai Arbitration Commission, Deputy Chairman and Secretary-General of Shanghai International Shipping Center Development and Promotion Organization
  • Yan Wei, Vice President, Shanghai Maritime University
  • Ye Mao, Deputy President of the Design Research Institute, Wuchang Shipbuilding Industry Group Co., LTD.
  • Wee Meng Tan, Chief Projects Officer, Global Centre for Maritime Decarbonisation
  • Yuan Chao, General Manager of Equipment, CSSC (Hong Kong) Shipping Company Limited
  • Zhang Yunxing, Head of the Ballast Water Convention Research Office, Hebei Maritime Safety Administration
  • Zhang Yong, Vice President, Shanghai Academy of Development & Reform
  • Gou Yingdi, Director of Sustainable Development and General Manager of the Technology and Development (Innovation) Center, Seacon Shipping Group
  • Zhao Cuiyun, Deputy Director of the Institute for the Construction of the Shipping Center and Director of the Green Shipping Research Office, Shanghai International Shipping Institute
  • Cao Xianfeng, Deputy Chief Digital Planner, COSCO Shipping (Qidong) Offshore Co., Ltd

Conference Framework

May 16 (am) 

Plenary Session: Green Development Strategies and Pioneer Practices Towards Zero Carbon Goals

May 16 (pm)

Sub-Forum I: Green Shipbuilding and Retrofitting Forum
Sub-Forum II: Green Shipping Ecosystem Cooperation Forum

Key Topics

  • Maritime regulatory focus under policy guidance towards zero-carbon goals
  • Global green ship type product key technologies and applications
  • Analysis of paths to improve the efficiency of existing ships
  • How shipping companies can achieve sustainable green transformation
  • Innovative design methods for green ship types
  • Development and design of methanol dual-fuel ship types
  • Innovation and application of ship engines and propulsion systems
  • Technological application and outlook of wind energy as auxiliary power for ships
  • Prospects and challenges of ammonia fuel application
  • Innovation in new marine fuels and supply systems
  • Upgrading of ship battery systems to meet shipping emission reduction
  • Fluid power energy-saving technology and practice to promote the green and low-carbon development of the shipping industry
  • Green ship repair, intelligent painting and VOCs management in ship and marine engineering
  • Exploration and practice in digital transformation and intelligent upgrading of the ship repair and modification industry
  • Practice of ship energy consumption data analysis and carbon intensity management
  • SCR technology innovation for NOx reduction in ship diesel engines
  • The latest technological applications of "carbon capture" in the shipping industry
  • Ballast water management systems in line with international standards
  • Shore power systems combined with green electricity to assist shipping decarbonization
  • Supply status and choice analysis of the marine green fuel market

Host:

  • Shanghai International Shipping Center Development and Promotion Organization

Co-organisers:

  • Shanghai Maritime University 
  • Shanghai Institute of Navigation
  • Jiangsu Association of Shipbuilding Industry
  • Jiangsu Society of Naval Architects And Marine Engineers

Supporting Organisations:

  • Shanghai Port Association
  • Hubei Association of Shipbuilding Industry
  • Shanghai International Shipping institute

Interested parties may contact:

Yulia Zhang
T: (+8621) 6095 7179
M:(+86) 158 3615 6079 (Also on WeChat)
E-mail: [email protected] 

Note: More information on the summit, including registration, can be found here

 

Photo credit: Shine Consultant
Published: 21 March, 2025

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Alternative Fuels

Molgas commences bio-LNG bunkering operations in Port of Zeebrugge

First deliveries of bio-LNG started in January, with multiple operations running smoothly through its logistics network and more deliveries are expected in the coming weeks, says Molgas.

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Molgas commences bio-LNG bunkering operations in Port of Zeebrugge

Madrid-headquartered Molgas Energy Group on Thursday (20 March) said it has started the supply of bio-LNG at the Port of Zeebrugge. 

The first deliveries of bio-LNG started in January, with multiple operations running smoothly through its logistics network. 

“More deliveries are already scheduled in the coming weeks,” it said in a social media post. 

The company said the expansion marked a significant step forward in its commitment to delivering sustainable and low-carbon energy solutions across Europe. 

“The Port of Zeebrugge as a key hub for bio-LNG fuelled vessels dealing with FuelEU Maritime, enabling us to serve the marine customers efficiently,” it said. 

“Through our Multi Truck to Ship (MTTS) process, we successfully manage deliveries of 200-300 tonnes simultaneous to the vessels operation (SIMOPS), demonstrating our operational excellence and flexibility.”

 

Photo credit: Molgas Energy
Published: 21 March, 2025

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