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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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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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