Connect with us

Business

FUJCON 2021: Panelists in showdown on relative costs of clean bunker fuels

‘LPG is underrated…but I think the fact that we’re making decisions and implementing them rather than just reporting on sustainability is important,’ said CEO BW LPG.
Admin

Published

5 years ago

on

Screen Shot 2021 04 05 at 2.01.35 PM

Panelists representing respective interests in ‘future’ marine fuels on Wednesday (24 March) shared their perspectives and experience to date with liquified natural gas (LNG), hydrogen, liquified petroleum gas (LPG), methanol and biofuels at the 12th Fujairah International Bunkering and Fuel Oil Virtual Forum (FUJCON 2021).

While most of the first half of the session was regarding the sustainability of these fuels Vivek Chandra of LNG Entrepreneur pointed out it is important to discuss the relative costs of these fuels.

“I understand LPG a great deal, I understand that it’s easily available, it’s a simple fuel […] I have an LPG tank in my backyard for my barbecue right now and it’s very easy to get filled. My point is, it is not that cheap,” states Chandra.

“It’s actually a very expensive fuel and I would venture to say in most parts of the world, it’s a lot more expensive than LNG and of course a way more expensive than any low sulphur oils. So how do you get over that?”

Anders Onarheim, Chief Executive Officer, BW LPG agreed that LPG is “quite expensive” but was positive of its long term gains. 

“There’s no question today that LPG is quite expensive relative to when we made the decision […] but I think if you look at forward prices we still see a nice payback over five to six years, when you look at the price,” replies Onarheim.

“Obviously we think LPG is underrated but I also think the fact that we’re actually making decisions and implementing them rather than just writing in our annual report that we care about sustainability. That to me is important.”

Gary Hubbard, Chief Commercial Officer, Neutral Fuels Company meanwhile was confident his company which provide biofuels in India and in Bahrain will be able to meet the price points required by the markets; however, he pointed out the product faces a challenge.

“The challenge for us, as with any fuel is the feedstock […] and as an organisation we don’t believe in government subsidies or handouts or bailouts or anything like that,” shares Hubbard.

“The more that can be done […] to optimise our waste into usable biofuels, then the cheaper the fuel becomes. Ultimately that makes it operationally sustainable, financially sustainable, and absolutely environmentally sustainable.”

Chris Chatterton, COO, Methanol Institute explains all fuels will become more expensive if they are cleaner and methanol is a highly pure product.

“Methanol’s energy content is considerably more than ammonia and substantially more than hydrogen, so it’s a fuel that can take us well into the future even to be used in fuel cells,” states Chatterton.

Lars Liebig, Managing Director, Uniper Energy DMCC believes all fuels which require a lot of CAPEX and new investments will always become a challenge; and suggests for the shipping industry to start with a drop-in fuel. 

“So, let’s start with a drop-in fuel. The price point for the biofuel blend we are offering now in Fujairah together with Gary [Neutral Fuels Company] is a 10% reduction in CO2 emissions for roughly 15% more on the total price,” adds Lars Liebig, Managing Director, Uniper Energy DMCC.

“That’s not bad. Basically everybody can immediately cut 10% of emissions by paying 15% more. Additionally, the ultimate price point for each of the goods delivered is very minimal. So, we can achieve a lot immediately if we start. So I think that’s what we need to focus on, and then the rest will come gradually, I’m sure.”

Saunak Rai, General Manager, FueLNG, had some concluding remarks to contribute.

“The way I see it, the future fuel scape is not one fuel or two fuels, it’s a fuel mix, and all of the fuels we discussed today have a special role to play,” he says.

“Somewhere LNG makes sense because of its global availability or because of the price or because of its safety standards. 

“Some places will utilise hydrogen, others ammonia or methanol, and together, this will make up the global fuel mix. Each ship, each trade, each part of the world would have a solution and the ratios of this fuel mix would be different.”


Photo credit: FUJCON 2021
Published: 5 April, 2021

Related Topics:
Continue Reading

Incident

MPA: 25 crew rescued after abandoning “MSC HERMES III” east of Vietnam

MRCC Singapore coordinated the rescue after receiving a distress alert at about 8.45am as the vessel was within Singapore’s Maritime Search and Rescue Region.

Admin

Published

6 hours ago

on

September 23, 2026

By

RESIZED bunker tanker singapore

The Maritime and Port Authority of Singapore (MPA) on Tuesday (22 September) said all 25 crew members from the Liberia-registered container vessel MSC HERMES III were rescued on 22 September 2026. 

The Maritime Rescue Coordination Centre (MRCC) Singapore coordinated the rescue after receiving a distress alert at about 8.45am (Singapore Time). 

“The vessel was within Singapore’s Maritime Search and Rescue Region (MSRR), about 300km east of Vietnam,” MPA said in a statement. 

MRCC Singapore immediately issued a broadcast requesting vessels in the vicinity to render assistance. Three vessels responded, and MSC RUBY recovered all 25 crew members after they had abandoned MSC HERMES III in a lifeboat. 

“All 25 crew members are safe, with no injuries reported,” MPA said. 

“MRCC Singapore is coordinating with the Vietnamese MRCC on arrangements for the rescued crew members to return safely to shore.”

 

Photo credit: Manifold Times
Published: 23 September, 2026

Continue Reading

Alternative Fuels

GCMD, Equinor to combine expertise on alternative bunker fuels, decarbonisation solutions

Equinor brings extensive experience to partnership as a vessel charterer and marine fuel supplier, including chartering dual-fuel LNG and methanol tankers, testing biofuels and supplying methanol.
Admin

Published

7 hours ago

on

September 23, 2026

By

GCMD, Equinor to combine expertise on alternative bunker fuels, decarbonisation solutions

The Global Centre for Maritime Decarbonisation (GCMD) and Equinor on Tuesday (22 September) announced a five-year Impact partnership.

The partnership brings together GCMD’s capabilities in conducting real-world maritime pilots with Equinor’s experience as a charterer, energy provider and developer of low-carbon solutions.

Together, the organisations will leverage their complementary expertise to help address technical and operational gaps in scaling alternative marine fuels and supporting the development and uptake of other maritime decarbonisation solutions.

GCMD’s work on alternative fuels, including biofuels, ammonia and methanol, focuses on two critical aspects of deployment: operational safety and robust monitoring, reporting and verification (MRV). Its pilots and studies are generating operational data to support safe bunkering and handling of these fuels. 

At the same time, its assurance work seeks to strengthen confidence in quantity, quality and GHG emissions abatement.

“Equinor brings extensive experience as a vessel charterer and marine fuel supplier. This includes chartering dual-fuel LNG, LPG and methanol tankers, testing and using biofuels and supplying methanol to the maritime sector,” GCMD said.

Equinor is also piloting the use and supply of ammonia as a marine fuel, contributing to the development of associated safety, regulatory and bunkering arrangements.

Combining these perspectives can help address practical barriers to alternative fuels deployment while strengthening assurance across emerging marine fuel value chains.

Beyond alternative fuels, GCMD is working to accelerate the adoption of solutions that can reduce emissions from the existing fleet, including energy efficiency technologies (EETs) and onboard carbon capture and storage (OCCS).

GCMD’s work on EETs includes quantifying real-world fuel savings from technologies such as wind-assisted propulsion systems and developing financing mechanisms to scale their adoption. In OCCS, Project CAPTURED demonstrated an end-to-end value chain for onboard captured and liquefied CO₂, generating evidence that contributed to the recognition of captured CO2 under the EU ETS and in-principle support at the IMO for recognising carbon mineralisation as permanent storage.

Equinor brings decades of experience in offshore CO₂ storage, including its role in the development and operation of Northern Lights, the world’s first cross-border CO2 transport and storage facility, where liquefied CO₂ is transported by ship to an onshore receiving terminal before it is sent by pipeline for permanent geological storage beneath the North Sea.

Through the partnership, GCMD and Equinor will explore opportunities to combine their respective capabilities and experience to support the deployment and scaling of maritime decarbonisation solutions.

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 23 September, 2026

Continue Reading

Decarbonisation

Wah Kwong NatPower, AREL partner on maritime electrification in Hong Kong

Collaboration will examine opportunities to deploy shore power facilities, vessel charging infrastructure and battery energy storage solutions, alongside the development of electric vessels.
Admin

Published

7 hours ago

on

September 23, 2026

By

Wah Kwong NatPower, AREL partner on maritime electrification in Hong Kong

Wah Kwong NatPower (WK NatPower) on Tuesday (22 September) said it has signed a Memorandum of Understanding (MoU) with Aberdeen Restaurant Enterprises Limited (AREL) to explore the electrification of piers, vessels and supporting energy infrastructure in the Aberdeen area of Hong Kong.

Against the backdrop of the HKSAR Government’s latest policy direction to advance green shipping, smart port development and shore power infrastructure, WK NatPower and AREL will explore the development of an integrated marine electrification ecosystem in the Aberdeen and Shum Wan areas. 

The collaboration will examine opportunities to deploy shore power facilities, vessel charging infrastructure and battery energy storage solutions, alongside the development of electric vessels for future transport and tourism services.

The initiative supports Hong Kong to become a leading hub for sustainable maritime innovation while contributing to the revitalisation of one of the city’s most iconic waterfront communities. As an initial phase of the collaboration, the two parties will explore the opportunity for the construction of a series of electric vessels and transport vessels. 

The initiative will also examine the potential deployment of the ApliAber® electric vessel fleet as a new benchmark for sustainable waterfront mobility and hospitality experiences in Hong Kong.

Vincent Ni, General Manager of WK NatPower, said: “This MoU marks an important step in supporting Hong Kong’s marine energy transition. Aberdeen has long been an iconic part of Hong Kong’s maritime heritage, and we are delighted to explore opportunities to develop integrated shore power and vessel electrification solutions that can support a cleaner and more sustainable future for the harbour.”

Wong Tai Yu, Director of AREL, said: “Through this collaboration, we look forward to exploring practical ways to introduce cleaner energy, electric vessels and sustainable waterfront experiences, while supporting the revitalization of Jumbo Kingdom® for future generations.”

 

Photo credit: Wah Kwong NatPower
Published: 23 September, 2026

Continue Reading

Trending