Alternative Fuels

GCMD, BCG survey highlights three maritime decarbonisation archetypes

Survey identified three decarbonisation archetypes within the shipping industry, differentiated in their outlook, investment appetite and the challenges faced.

Published

2 months ago

September 28, 2023

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The Global Centre for Maritime Decarbonisation (GCMD) and Boston Consulting Group (BCG) conducted an industry survey to take stock of shipowners and operators’ progress in establishing six elements needed for the shipping industry to reach net zero, according to BCG on Wednesday (27 September).

The survey saw strong participation from 128 shipowners and operators across vessel types, fleet sizes and geographies, which collectively own or operate 14,000 merchant vessels, and account for USD500 billion in revenue.

The duo found high decarbonisation ambitions: Most respondents viewed net zero as a strategic priority, and 77% had already set concrete decarbonisation targets. The industry has also mobilised resources to decarbonise: respondents are investing 2% of their revenues into green initiatives, and 87% have personnel working toward green objectives.

The path to net zero for shipowners and operators requires six elements:

A robust strategy and roadmap
Four specific decarbonisation levers to reduce emissions: operational efficiency, technological efficiency, fuel transition, and shipboard carbon capture
Enablers such as dedicated sustainability teams, strategic investments in green initiatives, internal carbon prices, and digitalization

While the industry has made some progress in adopting mature and cost-effective efficiency levers, adoption of complex or nascent levers remains low. Drop-in green fuels are constrained by costs and supply-side gaps, and optimism for future cleaner fuels is yet to translate into firm commitment.

The industry is now at a pivotal point, with many shipowners and operators ramping up their decarbonisation efforts. Three-quarters of respondents plan to increase investments in green initiatives. Stakeholders can build on this momentum with a variety of supportive actions. But to be effective, they need to tailor their interventions to address the specific challenges that shipowners and operators face at each stage of decarbonisation.

Three Decarbonisation Archetypes

GCMD and BCG saw three archetypes, differentiated in their outlook, investment appetite, and the challenges faced.

Frontrunners have the greatest ambitions and are willing to invest heavily. They are pushing boundaries, adopting even nascent decarbonisation levers, such as wind propulsion and air lubrication. A majority plan to pilot shipboard carbon capture solutions by 2025. Frontrunners are also planning to adopt methanol and ammonia as early as 2026 and 2029 respectively, and the availability of fuels and bunkering infrastructure will be critical to enabling adoption.

Followers believe in decarbonising their fleets, but have tighter investment thresholds and a near-term outlook. They have kept pace with Frontrunners in adopting mature and cost-effective efficiency levers, such as main engine improvements and slow steaming, but are behind in the adoption of nascent levers, such as wind propulsion and air lubrication.

Conservatives are still early in their decarbonisation journey, likely due to a lack of awareness and familiarity with the various decarbonisation levers, and the capabilities to assess and deploy them. They are best supported by measures that increase their familiarity with the levers and help contextualise them to their specific fleets and operational requirements.

The research highlights five key actions for stakeholders:

Conduct technical pilots and facilitate data sharing, especially for nascent levers

Create innovative financing mechanisms to de-risk adoption of less mature levers
Raise awareness, contextualize levers, and build capabilities, especially among Conservatives
Start to build out future fuels infrastructure at ports
Develop mechanisms to equalize and share the costs of levers across the ecosystem
Maritime decarbonization is a complex, critical endeavor. The successful implementation of these five key actions demands a whole-of-value-chain approach. By working together, stakeholders can transform the maritime sector into a beacon of environmental stewardship, and set a course for a greener future where decarbonization and commercial success go hand in hand.

Note: The GCMD-BCG Global Maritime Decarbonisation Survey report can be downloaded here.

Photo credit: Venti Views on Unsplash
Published: 28 September, 2023

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DNV, VPS, ZeroNorth and Equatorial Marine Fuel among Marine Fuels 360 Award winners

Informa Markets announced recipients to twelve open awards across four sectors – Shipping, Bunker Trade & Supply, Decarbonisation & Technology and Bunkering services – and three special awards.

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December 1, 2023

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DNV, VPS, ZeroNorth and Equatorial Marine Fuel among Marine Fuels 360 Award winners

Informa Markets on Wednesday (29 November) announced the recipients to the inaugural Marine Fuels 360 Awards 2023 at a Gala Dinner held at the Marina Bay Sands.

Twelve open awards across four sectors – Shipping, Bunker Trade & Supply, Decarbonisation & Technology and Bunkering services were conferred, evaluated by a panel of judges formed by industry thought-leaders.

The hotly contested Decarbonisation Technology Award was awarded to Anemoi Marine Technologies, with their Rotor Sails technology standing out as an innovative, safe and effective solution for reducing environmental impact of the shipping industry, as well as its potential for wide- scale adoption.

Kim Diederichsen, CEO of Anemoi Marine Technologies, said: “What we do is we bring wind technology to the market, namely rotor sails. It's an honour being here, receiving this prestigious award this night.” Reducing fuel consumption and emissions on commercial vessels through utilising wind power for auxiliary propulsion, the technology can be adapted to various vessel types and sizes from existing vessels to newbuilds, to enhance their Energy Efficiency Design Index (EEDI).

TFG Marine Pte Ltd was awarded the Physical Supplier of the Year Award. It stands out as an industry leader for its scale of operations, proactive approach to decarbonisation, investment in technology, commitment to transparency and customer service. As one of the world’s largest physical bunker suppliers, TFG has delivered more than 10 million tons to over 480 clients globally over the last financial year.

Marine Fuels 360 Conference — *Marine Fuels 360 Awards*

“TFG is very honoured to get this award and it's a recognition of the hard work and the good work we have done and also the milestones we have achieved so far for the whole of the year. We will continue to strive to provide good services and transparency to our customers, support all the alternative fuels and energy transitions across all spectrum”, said Soo Yong, Regional Bunker Sales.

Three special awards were also presented to celebrate the recognise the outstanding work and exemplary contributions to three individuals, recognising their performance in the bunkering industry – Industry Icon, CEO of the Year and Lifetime Achievement:

The Industry Icon Award goes to Mr Choong Kien Siong, President, Equatorial Marine Fuel Management Services Pte Ltd, who said: “It is a great honour to receive this prestigious award. Together withthe new generation, Equatorial Marine Fuel will continue to adapt and reinvent ourselves as we sail into the green economy.”

The CEO of the Year was presented to Mr. Russell Hardy, Group CEO, Vitol Services Ltd. Receiving the award on his behalf is Captain Rishab Bahl, Managing Director of Mansel Pte Ltd, said: “The maritime industry has committed to a major decarbonisation mission and this is not going to be without challenges. Our industry will turn to Singapore for leadership and our industry has committed to a major decarbonisation mission where we will support Singapore’s decarbonising journey.

The honorary Lifetime Achievement was also conferred to Capt. Rajesh Unni, Executive Chairman, Synergy Marine Group, who said: “If there is one thing that I have learnt, is that Singapore offersthe opportunity on the basis of meritocracy, there is hope for people to take and given their all and there is chance, so I am grateful for this country for giving us the opportunity and that I have made some impact in your life, that hopefully is my mission.

The full list of awardees as below:

Shipping

Shipping Company of the Year - Hafnia
Ship Manager of the Year – Synergy Marine Group

Bunker Trade & Supply

Physical Supplier of the Year – TFG Marine Pte Ltd
Physical Trader of the Year - Minerva Bunkering Pte Ltd
Deal of the Year - Shell North America LNG
Alternative-Fuelled Vessel Design of the Year - Eaglestar Shipmanagement (S) Pte Ltd
Supply Chain & Logistics Excellence of the Year - TotalEnergies Marine Fuels Pte. Ltd.

Decarbonisation & Technology

Decarbonisation Technology - Anemoi Marine Technologies
Digitalisation- ZeroNorth
Start-Up of the Year - Njord

Bunkering Services

Classification Society - DNV
Marine Fuel Testing & Inspection Excellence - Veritas Petroleum Services (VPS)

Special Awards

Industry Icon – Mr Choong Kien Siong, Equatorial Marine Fuel Management Services Pte Ltd
CEO of the Year - Mr. Russell Hardy, Vitol Services Ltd
Lifetime Achievement – Capt. Rajesh Unni, Synergy Marine Group

Photo credit: Informa Markets
Published: 1 December, 2023

Biofuel

Kenoil Marine Services to conduct first-ever bunkering of bio-blended LSMGO in Singapore

“Kosmos Lily” is slated to supply bio-blended LSMGO, sourced from Alpha Biofuels, representing the first-ever bunkering of bio-blended LSMGO in Port of Singapore, says Jurong Port.

Published

1 day ago

November 30, 2023

Admin

Kenoil Marine Services to conduct first-ever bunkering of bio-blended LSMGO in Singapore

Jurong Port on Wednesday (29 November) said Kenoil Marine Services Pte Ltd, a licensed bunker supplier, successfully loaded 200 metric tonnes of B24 bio-blended Low Sulphur Marine Gas Oil (LSMGO) in Singapore.

The B24 marine biofuel blend was onto Kenoil Marine’s bunker tanker Kosmos Lily.

“Kosmos Lily is slated to supply this bio-blended LSMGO, sourced from Alpha Biofuels, representing the first-ever bunkering of bio-blended LSMGO in the Port of Singapore,” Jurong Port said in a social media post.

“Jurong Port takes pride in serving as the preferred port infrastructure for biofuel bunkering, and supporting the maritime industry's energy transition toward achieving net-zero emissions.”

Separately, Allan Lim Yee Chian, Founder and CEO at Alpha Biofuels, said the firm has been working to produce, blend and supply better quality biofuels for the maritime industry for over the last two years.

“We focused a lot on traceability of the biofuels , stability of the blended product and also the cost of the product,” he said in a social media post.

“The result is a bio-bunker fuel that balances the need for decarbonisation by the industry against the cost of sustainable biofuel.”

Photo credit: Jurong Port
Published: 30 November, 2023

Newbuilding

SeaTech Solutions and partners to develop India’s first electric tug E-VOLT 50

Other partners involved are India’s GRSE, Shift Clean Energy and ABS; GRSE will build an electric tug based on the E-VOLT 50 design by Singapore-based SeaTech Solutions.

Published

1 day ago

November 30, 2023

Admin

SeaTech Solutions and partners to develop India’s first electric tug E-VOLT 50

Singapore-based marine engineering and vessel design specialist SeaTech Solutions International (S) Pte Ltd on Tuesday (28 November) on Tuesday (28 November) said it inked Memorandum of Understanding (MOU) with India’s Garden Reach Shipbuilders and Engineers (GRSE) Ltd, Shift Clean Energy and American Bureau of Shipping (ABS) on 22 November.

The collaboration aims to bring to fruition the country’s first Electric Tug E-VOLT 50, an initiative to decarbonise India’s tugboat industry by curbing carbon emissions, enhancing operational efficiency, and establishing new benchmarks for performance and environmental sustainability.

GRSE India will build an electric tug based on the E-VOLT 50 design by SeaTech Solutions International (S) Pte Ltd.

Cmde PR Hari, IN (Retd), Chairman and Managing Director, GRSE, said: “We are excited to be part of this groundbreaking collaboration that combines the expertise of GRSE and three industry-leading organisations.

“E-VOLT 50 is a bold step towards a cleaner and greener future for the maritime sector. By utilizing sustainable energy solutions and cutting-edge technology, we aim to redefine the standards of

performance, efficiency, and environmental stewardship.”

Prabjot Chopra, VP Technology at SeaTech Solutions, said, “We are delighted to work with GRSE, Shift Energy and ABS on this E-VOLT 50, India’s first Electric Tug, which will pave the way for India’s Green port operation.”

“As the collaborative efforts of GRSE, SeaTech Solutions, Shift Energy, and ABS take shape, the Electric Tugs E-VOLT 50 project stands as a testament to India's commitment to fostering a sustainable maritime industry that aligns with global environmental goals,” SeaTech Solutions added.

“This initiative reflects a pivotal moment in the evolution of green shipbuilding, marking a significant stride towards a cleaner, greener, and more efficient future for the maritime sector.”

Photo credit: SeaTech Solutions International
Published: 30 November, 2023