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Future-proofing shipping: The decarbonization game-changer

DNV, BHP, and AET panellists note the maritime industry is still not moving fast enough towards decarbonization at the recently held event.

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20220126 Live from SG Panel 2 MT

The global maritime industry might efficiently move 90% of goods around the world, but it’s also responsible for around 3% of global emissions of greenhouse gases.

Committed to decarbonization, the industry is still not moving fast enough, according to industry panelists who took part in a “Live from Singapore” webinar on 25 January. Organized by classification society DNV, the panel discussion caught the interest of more than 1,100 registrants mainly from the South East Asia, Pacific and India region.

While the maritime industry is under increasing pressure to decarbonize, panellists drew attention to what’s being done, and what more can be done, to speed up the process.

Moderator Yvonne Chan, presenter and former CNA News Anchor, asked panellists as to how far shipping has progressed on the decarbonization journey.

Rashpal Singh Bhatti, Vice President of Maritime & Supply Chain Excellence, BHP, one of the largest bulk charterers in the world, was quick to say: “We’re only at the start!”

He admitted that momentum is very good, as is global awareness, “but we’ve only just started on the journey to decarbonization”.

Mr Bhatti also strongly feels that “innovation will drive regulation”, and that it will not only be regulation that solely drives change. The International Maritime Organisation (IMO) is doing what it can, but 2023 is too late for a material change in carbon regulation, he said, pointing out that BHP has 150 vessels in the water at any one time.

It is an imperative that the industry sets the pace, he argued, as BHP has done with the commissioning of five LNG fuelled Newcastlemax bulk carriers this year.

He gave examples of how ship operators can improve performance and cut emissions through innovations, like adding wind rotors on vessels, painting hulls of vessels to reduce friction, as well as using biofuels, like used cooking oil, which has been adopted as a bunkering fuel in Singapore.

It was also noted that BHP, for one, is supporting the Global Maritime Forum’s Call to Action to fully decarbonize shipping by 2050 and is a founding member of the Global Centre for Maritime Decarbonisation (GCMD) in Singapore, too.

Johan Munir, Global Director, Corporate Strategy & Planning for leading tanker owner and operator AET, was optimistic about progress towards decarbonization.

Mr Munir told the webinar audience, “The shipping industry has made some progress to create awareness on the decarbonization issue as compared to when AET first pioneered dual-fuel solutions in 2017.”

He thinks the industry has already progressed 25% of the way towards the goal of decarbonization. However, we need to build on the momentum as much more has to be done.

AET is one industry player which has set new standards of eco-efficient shipping to meet IMO 2030 aspirations. As an early adopter, AET has invested over the past five years a total of around USD 2bn in new, more eco-efficient assets, including around 50% in dual-fuel vessels.

“We own nine dual-fuel vessels including five of the world’s first VLCCs to be delivered in 2022 and 2023 and we are not stopping there.” Mr Munir added, “Having a progressive Board is important to address the sustainability and decarbonization challenges.”

Cristina Saenz de Santa Maria, Regional Manager responsible for DNV’s Maritime operations in South East Asia, Pacific & India, sees that some industry members are ahead of the game and making very good progress, while others are trying to figure out how they fit in the decarbonization puzzle.

“But I like to see it this way: We are 100% committed to decarbonization. We have a clear goal to reach carbon zero. But we need to share, and we need to collaborate. It’s a team sport and not a race.”

Ms Saenz de Santa Maria also insists that there is no time to waste. “We only have this decade to get on track if we want to reach net zero by 2050. We have to not only reward first movers, but to incentivize investors to commit funds to the decarbonization process. Regulatory certainty is as well a must to reach the IMO goals.”

“We like to think of ourselves as trailblazers, as we see that DNV as a classification society has an important role to play to help the maritime industry navigate complex challenges,” she added.

The panellists were asked to elaborate on strategies to future-proofing shipping fleets.

With increasing regulatory uncertain ties, changing transportation needs, technological progress and alternative fuels, moderator Yvonne Chan asked how can ships of the future remain competitive and choose the best way forward?

Mr Bhatti said BHP was already working with industry partners to future proof its fleet. He gave the example of how some vessels designed and built for LNG can be easily retrofitted to consume new alternative fuels, like ammonia and hydrogen.

“We must also take waste out of the supply chain”, he said, indicating that it’s possible to achieve 15 to 20% savings by optimizing energy and other resources through more efficient operations in port and at sea.

Ms Saenz de Santa Maria reinforced the importance of energy efficiency. “We can also reduce energy emissions through ship design, as well as by better managing ship operations.”

She drew attention to steps being taken now to design ships that have built in “fuel flexibility” capabilities with “fuel ready” class notations,

Mr Munir made it clear that ships are designed for a lifetime of 20 to 25 years, hence they must also be future-proofed. In October 2021, AET invested in a climate tech start-up in methane abatement technologies to support the development and deployment of technology to transition the maritime sector to net-zero.

“Longer-term solution for decarbonization sees multiple pathways and we will select the most effective long-term solution for zero carbon vessels. Our company’s sustainability strategy incorporates profit but also takes account of people and the planet,” he said.

Shifting the focus to safety and recognizing that shipping has seen an improvement in this area over the last ten years, panellists were asked how new fuel technologies, for example, posed new challenges and risks.

Mr Bhatti was the first to insist that decarbonization and safety go hand in hand.

He pointed to the importance of maintaining “seafarer safety” in general. He credited hundreds of thousands of seafarers around the world who have shown that they are “essential workers” during these pandemic years, maintaining supplies of essential goods and services.

The other panellists agreed that safety must continue to be a prime consideration with the introduction of decarbonization, particularly when it comes to bringing new alternative fuels on board.

That’s why extensive fuel trials and pilots are necessary, and Ms Saenz de Santa Maria felt that Singapore is one of the best places for this, noting that safety is a prime consideration in assessing the suitability of new fuels, like ammonia and hydrogen.

In conclusion, panellists agreed that it was important for “business to come first” to drive the maritime industry towards decarbonization, but they would be wise to work together as so much more can be achieved through collaboration.

Access to the full recording of the hour-long webinar is provided by DNV Maritime from this link:  https://www.dnv.sg/maritime/webinars-and-videos/on-demand-webinars/future-proofing-shipping-jan-2022.html

 

Photo credit: DNV
Published: 28 January, 2022

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Bunker Fuel

Singapore: Bunker fuel sales down by 9.1% on year in January 2025

4.46 million mt of various marine fuel grades were delivered at the world’s largest bunkering port in January, a drop from 4.91 million mt recorded during the similar month in 2024, according to MPA data.

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Singapore: Bunker fuel sales down by 9.1% on year in January 2025

Sales of marine fuel at Singapore port decreased by 9.1% on year in January 2025, according to Maritime and Port Authority of Singapore (MPA) data.

In total, 4.46 million metric tonnes (mt) (exact 4,461,710 mt) of various marine fuel grades were delivered at the world’s largest bunkering port in January, a drop from 4.91 million mt (4,906,100 mt) recorded during the similar month in 2024.

Deliveries of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in January (against on year) recorded respectively 1.66 million mt (zero from 1.66 million mt), 2.43 million mt (-15% from 2.86 million mt), 900 (+100% from zero), 3,100 mt (-77% from 13,500 mt) and zero (from zero).

Singapore: Bunker fuel sales down by 9.1% on year in January 2025

Bio-blended variants of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in January (against on year) recorded respectively 16,000 (+100% from zero), 92,000 mt (+103% from 45,300 mt), zero (from zero), zero (from zero) and zero (from zero).

LNG and methanol sales were posted respectively at 6,600 mt (-36.5% from 10,400) and zero (from zero).

A complete series of articles on Singapore bunker volumes by Manifold Times in 2024 can be found below:

Related: Singapore: Bunker fuel sales down by 5.2% on year in December 2024
Related: Singapore: Bunker fuel sales gain by 4.6% on year in November 2024
Related: Singapore: Bunker fuel sales gain by 10.8% on year in October 2024
Related: Singapore: Bunker fuel sales continue to increase by 2.8% on year in September 2024
Related: Singapore: Bunker fuel sales increase by 7.2% on year in August 2024
Related: Singapore: Bunker fuel sales up by 3.3% on year in July 2024
Related: Singapore: Bunker fuel sales gain 8.7% in June 2024
Related: Singapore: Bunker fuel sales increase by 6.7% in May 2024
Related: Singapore: Bunker fuel sales down by 0.6% on year in April 2024
Related: Singapore: Bunker fuel sales increase by 6.4% on year in March 2024
Related: Singapore: Bunker fuel sales up by 18.8% on year in February 2024
Related: Singapore: Bunker fuel sales up by 12.1% on year in January 2024

 

Photo credit: Maritime and Port Authority of Singapore
Published: 14 February, 2025

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Bunker Fuel

Singapore-based Straits Bio-LNG aims to deliver 250,000 mt of bio-LNG bunker fuel per year

Firm is currently in advanced stage of testing breaking down Empty Fruit Bunch through an established biological process with high enzyme concentration in its R&D facility in Malaysia to produce bio-LNG.

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Singapore-based Straits Bio-LNG aims to deliver 250,000 mt of bio-LNG bunker fuel per year

Straits Bio-LNG, a privately owned supplier of bio-LNG, is aiming to deliver 250,000 metric tonnes (mt) of bio-LNG per year in Singapore, according to SEA-LNG on Thursday (13 February).

The Singapore-based company, led by SK Tan as CEO, is doing so in response to the growing demand for LNG. LNG bunkering volumes have grown significantly in key bunkering hubs as more LNG-fuelled vessels have entered into operation. 

The Maritime and Port Authority of Singapore (MPA) saw a dramatic four-fold increase in 2024 to almost 340,000 mt, SEA-LNG said in a statement announcing Straits Bio-LNG joining the coalition. 

Headquartered in Singapore, the company boasts a growing team led by SK Tan as CEO.  

Yiyong He, Director at Straits Bio-LNG, said: “We’re firmly convinced in the viability of the LNG pathway to decarbonise the shipping industry. With its very low carbon intensity and improving commerciality, liquified biomethane will be a critical piece of the puzzle for decarbonising the sector.”

“By joining SEA-LNG, we’re proud to be part of a collection of first movers making real strides to make the LNG pathway a tangible reality today.”

Straits Bio-LNG aims to reach its bio-LNG supply goal by using pioneering methods. It is currently in the advanced stage of testing breaking down Empty Fruit Bunch (EFB) through an established biological process with high enzyme concentration in its R&D facility in Malaysia. 

Both Palm Oil Mill Effluent (POME) and EFB are sustainable biomass resources listed in the “List of Materials Eligible for ISCC EU Certification” and are therefore compliant with the European Union’s Renewable Energy Directive (RED).

Peter Keller, chairman of SEA-LNG, added: “The Port of Singapore is the largest global bunkering hub. As seen in our View from the Bridge report, 2024 saw record growth in LNG and liquified biomethane bunkering, but we need more fuel to meet upcoming demand.”

“The use of liquefied biomethane as a marine fuel can reduce GHG emissions by up to 80% compared to marine diesel on a full well-to-wake basis. When produced from the anaerobic digestion of waste materials, such as manure, POME or EFB, methane that would otherwise be released into the atmosphere is captured, resulting in negative emissions of up to -190% compared with diesel."

An independent study by the Maritime Energy and Sustainable Development Centre of Excellence at Nanyang Technical University in Singapore found that pure bio-LNG could cover up to 13% of the total energy demand for shipping fuels in 2050, rising to 63% for a 20% blending ratio. 

SEA-LNG added MPA has firmly established itself as a leader in the LNG pathway, with suppliers such as Straits Bio-LNG reinforcing this position. 

Recently, the port launched an Expression of Interest (EOI) to explore scalable solutions for sea-based LNG reloading to complement the existing onshore LNG bunkering storage and jetty capacities and the supply of e/bio-methane as marine fuel in the Port of Singapore.

“Straits Bio-LNG will play a critical role in furthering the expansion of liquified biomethane at scale to meet the demand and continuing to showcase the LNG pathway as a practical and realistic solution for shipowners to decarbonise their operations, starting today,” it said. 

Related: Singapore: MPA launches EOI to expand LNG bunkering services amid growing demand

 

Photo credit: Straits Bio-LNG
Published: 14 February, 2025

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Alternative Fuels

South Korea to invest USD 154 million into construction of environment-friendly ships

Government, local governments, and public institutions plan to invest approximately KRW 222.3 billion (USD 154 million) to support the building or conversion of 81 environment-friendly ships.

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RESIZED Lauren Seo on Unsplash

The Ministry of Oceans and Fisheries (MOF) Tuesday (11 February) announced that it has prepared the 2025 Implementation Plan for Environment-Friendly Ship Distribution in accordance with the first Master Plan for Environment-Friendly Ship Development and Distribution (2021-2030).

The government enacted the Act on the Promotion of Development and Distribution of Environment-Friendly Ships in December 2018 to mandate the public sector to build environment-friendly ships and provide the private sector with a legal basis to reduce acquisition taxes and provide subsidies when converting into environment-friendly ships. 

As a result, 199 ships were converted into environment-friendly ships as of last year.

This year, the government, local governments, and public institutions plan to invest approximately KRW 222.3 billion (USD 154 million) to support the building or conversion of 81 environment-friendly ships.

The public sector plans to build a total of 34 environment-friendly vessels, including electric-powered or hybrid ships, to reduce greenhouse gas emissions. Additionally, 15 operating ships will be equipped with diesel particulate filters (DPF) to reduce fine dust emissions.

In the private sector, support will be provided for building 20 ships in keeping with the demand for transitioning to environment-friendly vessels. Financial assistance such as secondary financing will continue to be offered as well for 12 vessels for installing environment-friendly equipment.

Meanwhile, applications for the 2025 First Phase of the Certified Environment-Friendly Vessel Supply Support Project will be accepted from 31  January 31 to 27 March to support the construction of environment-friendly vessels by small and medium-sized coastal shipping companies operating in domestic ports.

Eligible applicants include coastal shipping companies that order certified environment-friendly vessels such as electric-powered or liquefied natural gas (LNG)-fuelled ships. Selected applicants can receive subsidies of up to 30% of the ship's construction cost depending on the certification grade and vessel construction expenses.

“We will make generous investments in small and medium-sized shipping companies to convert into environment-friendly ships, drastically reduce greenhouse gases in the shipping industry, and proactively respond to strengthening international decarbonization regulations,” Minister Kang Do-hyung said.

 

Photo credit: Lauren Seo on Unsplash
Published: 14 February, 2025

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