Biofuel

GCMD and NYK to launch six-month trial of continuous bio bunker fuels use on vessel

Project will trial continuous use of a biofuels blend comprising of 24% FAME and VLSFO onboard a short-sea vehicle carrier that will call at multiple ports to address concerns of long-term use of biofuels.

Published

7 months ago

May 9, 2024

Admin

GCMD and NYK to launch six-month trial of continuous bio bunker fuels use on vessel

The Global Centre for Maritime Decarbonisation (GCMD) on Thursday (9 May) said it has teamed up with NYK Line to launch Project LOTUS, which stands for long-term impact of continuous use of biofuels on vessel operations.

This six-month project will trial the continuous use of a biofuels blend, comprising of 24% Fatty Acid Methyl Esters (FAME) and very low sulphur fuel oil (VLSFO), onboard a short-sea vehicle carrier that will call at multiple ports.

The use of a vessel plying short-sea routes will allow regular access to fuels stored onboard for sampling and testing during frequent port calls.

FAME, a readily available biofuel derived from second-generation feedstocks, like used cooking oil and palm oil mill effluent, presents a promising fuel alternative for immediate GHG emissions reduction in the shipping industry.

“While its compatibility with existing engines and bunkering infrastructure makes it an attractive ‘drop-in’ green fuel, concerns about the impact of its extended use on vessel operations remain,” GCMD said in a statement.

GCMD and NYK to launch six-month trial of continuous bio bunker fuels use on vessel

Unlike conventional marine fuels, one of the challenges with FAME is that it can be more susceptible to chemical degradation and microbial growth, the by-products of which can corrode shipboard engine systems and/ or clog fuel delivery systems.

As a preventative measure, engine Original Equipment Manufacturers (OEMs) and classification societies have thus recommended increasing the frequency of maintenance when using biofuels and its blends compared to using conventional marine fuels.

Despite a promising surge in biofuel bunkering volumes at key hubs, like Singapore and Rotterdam, with sales rising from negligible levels in 2020 to 1 million MT in 2023, their use still only represents 1.7% of total bunker sales at these hubs. With stricter regulations in force, the use of biofuels in shipping is likely to rise significantly in the coming years.

“To fully understand the opportunity FAME presents to the shipping sector, a thorough investigation of the impact on its long-term use and an evaluation of the total cost of adoption is critical,” GCMD added.

The past decade has seen trials of various biofuels onboard vessels; these have primarily focused on their combustion characteristics and the extent of emissions abatement. Data on the impact of long-term and continuous use of biofuels on engine performance and fuel delivery system operations remain limited.

Project LOTUS aims to address this knowledge gap by establishing industry guidelines for monitoring engine and equipment performance when using biofuels. This pilot will also evaluate the total cost of ownership of using biofuels, covering the cost of fuel and additional maintenance costs associated with its use. Additionally, it will identify potential challenges, e.g., corrosion of engine systems and valve failures, related to continuous biofuels use, and recommend mitigation strategies.

The quantitative findings from Project LOTUS offer an opportunity to contribute complementary real-world data to the upcoming revision of ISO 8217:2024, which includes specification of standards for a wider range of FAME-based blends up to B100.

Further, these learnings will be crucial for shipowners and operators who are considering biofuels use to meet vessel compliance with regulations, like the Carbon Intensity Indicator (CII) and the FuelEU Maritime Standards.

Scope of the pilot and industry participation

Project LOTUS will be conducted with the appointed vessel under commercial operations to capture real-world challenges and ensure that the learnings are extensible to the industry. The pilot will involve comprehensive tracking of fuel quality and lubricant efficacy, as well as monitoring engine and fuel delivery system performance over the course of the trial.

Leveraging its experience from three successful supply chain trials with four vessels for its drop-in green fuel assurance framework, GCMD will lead Project LOTUS in collaboration with industry partners. NYK Line, a co-sponsor, will contribute the vessel and manage fuel procurement. VPS will handle fuel and lube oil analyses and Gard will support GCMD as an insurance and risk assessment consultant on the project.

Professor Lynn Loo, CEO of GCMD, said, “Project LOTUS will provide valuable insights into how extended biofuels use affect engine performance and shipboard operations. This knowledge will empower stakeholders across the ecosystem, from shipowners and charterers to biofuels producers and regulators – to make more informed business and policy decisions. Ultimately, this pilot will lead to greater confidence for biofuels use at scale, accelerating progress towards decarbonising the maritime industry.”

Nobuhiro Kashima, Senior Managing Executive Office of NYK Line, said, “We released the “NYK Group Decarbonization Story” in November 2023, declaring a new target to reduce the NYK Group’s GHG emissions by 45% from the fiscal 2021 level by fiscal 2030. To achieve this goal, from fiscal 2024 we started conducting full-scale trials of the long-term use of biofuels in navigating existing heavy oil-powered vessels. We are delighted to launch Project LOTUS together with reliable partners, like GCMD. We believe the knowledge gained through this project will help us achieve our GHG reduction targets and eventually contribute to the decarbonisation of the maritime industry.”

Photo credit: Global Centre for Maritime Decarbonisation
Published: 9 May 2024

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Biofuel

GCMD, VPS provide innovative means to detect fraud in sustainable biofuel supply chain

Newly developed, unique proprietary test method from VPS, which can be applied to all FAME-based biofuels, both 100% (B100) and blends, helps to determine if the FAME is produced from a sustainable source.

Published

3 days ago

December 11, 2024

Admin

Marine fuels testing company VPS on Tuesday (10 December) shared more on a newly released paper on FAME bio bunker fuel from its latest collaboration with Global Centre for Maritime Decarbonisation (GCMD):

The Biofuel Detectives - The Proof is in the Testing

Sustainability is fast becoming a common term within today’s society, certainly when linked to global decarbonisation. The world’s population has become increasingly more aware of the human carbon-footprint and the need to reduce green-house gas emissions.

As an industry, world shipping is not exempt and levels of environmental legislation and directives being placed upon this sector are rapidly multiplying in order to achieve net-zero-carbon dioxide (CO2) pollution. Due to this increasing drive to reduce shipping’s global emissions, the move away from the use of traditional fossil fuels is gathering momentum and heading towards using alternative low-to-zero carbon fuels.

One such fuel type is biofuel and in particular FAME-based biofuel. Whether it be 100% FAME, or blends of FAME with traditional marine fossil fuels, FAME, or Fatty Acid Methyl Esters, to give the full name, provides an immediate option to reduce shipping’s CO2 emissions.

However, how can it be proven that the bio-component of the biofuel, is truly sustainable?

A newly released paper detailing ground-breaking, innovative research and development through a collaboration between the Global Centre for Maritime Decarbonisation (GCMD) and the world’s leading Maritime Decarbonisation Testing and Advisory Services company, VPS, provides the solution.

The paper, entitled Rapid Forensic Analysis of FAME-based Biofuels is now available on the GCMD’s website.

The paper highlights how VPS’ extensive experience in marine fuel analysis and considerable expertise in the use of the high-end forensic analytical technique, gas chromatography (GC), can be utilised to identify the true source of the bio-component (the oil). This newly developed, unique proprietary test method from VPS, can be applied to all FAME-based biofuels, both 100% (B100) and blends, eg B30. This identification helps to determine whether or not, the FAME is produced from a sustainable source.

It should be noted that not all FAME-based Biofuels have the same properties and since suppliers do not indicate the source oil, testing is so important to understand these properties. This is becoming increasingly important as the availability of FAME is driving suppliers to source FAME-based biofuels from an increasingly wide variety of exotic source oils.

VPS is now in a position to offer this unique and vital service to its customers, as a further means to support shipowners and operators in their drive to be compliant with both global and regional environmental legislation and ensure traceable sustainability of their operations.

The GCMD-VPS collaboration is proving to be a partnership which is delivering key solutions to the maritime sector, as shipping moves to becoming a truly sustainable industry.

Photo credit: VPS
Published: 11 December, 2024

Biofuel

Glander and SK Trading arrange for B24 bio bunker fuel supply in Singapore

Both arranged for the successful delivery of 250 metric tonnes of B24 biofuel blend in Singapore; delivery was made possible through SK Trading International, a supplier in Korea and Singapore

Published

4 days ago

December 10, 2024

Admin

Glander International Bunkering (Glander) on Monday (9 December) said it arranged the successful supply of 250 metric tonnes (mt) of B24 biofuel blend with SK Trading International in Singapore.

Glander said the collaboration marked an important step toward reducing carbon emissions in the maritime industry.

The delivery was made possible through SK Trading International, a supplier in Korea and Singapore. The delivery aligns with SK Trading International strategy, which aims to position the company as a global leader in the energy transition.

Dimitris Mertikas, Key Account Manager at Glander International Bunkering, said, “In this landscape, our Key Accounts team has positioned itself next to our customers, supporting them with the help of our trusted suppliers on the journey to new fuels every step of the way – from trial to adoption, one ship at a time. We will continue working closely with both our suppliers and clients to achieve our mutual environmental goals.”

Currently, Glander International Bunkering is capable of supplying second-generation biofuels in more than 100 ports worldwide.

“As the shipping industry increasingly prioritises decarbonisation, collaborations like this are expected to grow, solidifying Glander International Bunkering’s position as a leader in the transition to new fuels,” the firm added.

Photo credit: Manifold Times
Published: 10 December, 2024

Alternative Fuels

ENGINE on Fuel Switch Snapshot: LNG-VLSFO premiums double in a month

LNG premiums have soared; Singapore’s LNG up to premium over B24-LSMGO; bio-bunker prices drop in key bunker ports.

Published

4 days ago

December 10, 2024

Admin

ENGINE on Fuel Switch Snapshot: LNG-VLSFO premiums double in a month

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

9 December 2024

LNG premiums have soared
Singapore’s LNG up to premium over B24-LSMGO
Bio-bunker prices drop in key bunker ports

While VLSFO-equivalent prices for LNG and B24-VLSFO have shown little change over the past week, they have shifted sharply in the past month. LNG, which previously traded at a discount to B24-VLSFO, now commands a substantial premium in major ports like Rotterdam and Singapore.

Rotterdam’s LNG holds a significant $70/mt premium over its B24-VLSFO HBE price, compared to a $61/mt discount last month. Similarly, Singapore’s LNG has flipped from a $52/mt discount to an identical $52/mt premium over its B24-VLSFO UCOME price in the past month.

Singapore’s LNG has even climbed to a narrow $1/mt premium over its B24-LSMGO grade, a reversal from its $20/mt discount last week and $89/mt discount last month.

Meanwhile, LNG now stands at a whopping $228/mt premium over pure VLSFO in Rotterdam. In Singapore, LNG is $208/mt more expensive than pure VLSFO. LNG's premiums have jumped by more than $100/mt in a month.

VLSFO

VLSFO prices in Singapore and Rotterdam have remained almost unchanged in the past week. Rotterdam has seen a $3/mt gain, while Singapore has witnessed a $4/mt drop.

Availability of VLSFO remains tight in Singapore, where 10 days of lead time is recommended.

Supply pressures have eased slightly across VLSFO, LSMGO and HSFO grades in the ARA this week, a trader told ENGINE. VLSFO availability has returned to normal in the past week, with lead times of 3-5 days advised for the grade.

Biofuels

Singapore’s B24-VLSFO UCOME price has shed $3/mt in the past week, while its B24-LSMGO UCOME price has decreased by a sharp $15/mt. The bigger drop in the B24-LSMGO price is partly because of a $19/mt decline in the underlying ENGINE conventional LSMGO price.

The strengthening of used cooking oil (UCO) prices in China has exerted upward pressure on UCOME export prices, PRIMA Markets said.

Rotterdam biofuel benchmarks have almost mirrored the declines seen in Singapore. The B30-VLSFO HBE price in Rotterdam has edged down by $3/mt, while the B30-LSMGO HBE price has declined by a sharp $17/mt.

LNG

Rotterdam's LNG bunker price has dropped by $8/mt to $877/mt in the past week. The downward trend reflects a corresponding decrease in the underlying Dutch TTF Natural Gas contract. While European gas prices have dipped, colder-than-average temperatures across Northern Europe are expected to limit further price drops.

Singapore's LNG bunker price has gained by $6/mt in the past week, tracking gains in the NYMEX Japan/Korea Marker (JKM) contract. Despite a forecast for colder weather in Northeast Asia next week, demand prospects remains subdued for the near term.

By Konica Bhatt, Nithin Chandran and Debarati Bhattacharjee

Photo credit and source: ENGINE
Published: 10 December, 2024