Connect with us

Alternative Fuels

GCMD-led consortium to establish supply chain of green marine fuels

With 18 industry partners including BHP Singapore, this pilot will help to shape national and international standards of biofuels bunkering, amongst others.

Admin

Published

on

MT pix 25 july 2022 2 1

The Global Centre for Maritime Decarbonisation (GCMD) on Tuesday (26 July) said it is leading a consortium of 18 industry partners to launch a drop-in biofuels pilot project with a combined contribution of USD 18 million in cash and in-kind to establish an assurance framework for ensuring the supply chain integrity of current and future green marine fuels, bringing genuine benefits to end-users and the climate.

On the launch of this pilot project Professor Lynn Loo, CEO of GCMD, said: “GCMD is leading this route-based pilot to help align stakeholders in the supply chain for the adoption of biofuels. By facilitating and creating an optimised drop-in green fuels supply chain, this pilot will help to shape national and international standards of biofuels bunkering and lower the barrier for their wider adoption to reduce greenhouse gas (GHG) emissions from a lifecycle perspective. In curating and executing this first-of-its-kind drop-in biofuels pilot, GCMD is positioned to address stakeholder pain points in the complexities of the supply chain of green marine fuels in a meaningful way.”

Addressing the gap for the maritime industry

To meet the International Maritime Organisation’s (IMO) 2030 and 2050 decarbonisation targets, shipowners as well as cargo owners and charterers are exploring the purchase and use of green bunker fuels. Biofuels can be a near-term measure to reduce GHG emissions as they are available today, and they can be deployed in the same way as marine fuels with minimal changes to the existing distribution infrastructure, shipboard technologies, and operational norms of ships. However, there is no industry-wide assurance framework that addresses concerns on the quantity, quality and GHG emissions abatement of biofuels, nor one that safeguards their premium and value. 

To address this gap, the GCMD-led pilot aims to establish an assurance framework that ensures supply chain transparency of drop-in biofuels, whose applicability can be extended to future drop-in fuels, such as bio-LNG, biomethanol and green ammonia, when they become available in meaningful quantities.

Recent IMO decisions to eliminate the need to apply for waivers for using fuel blends with up to 30% biofuels (B30) for propulsion, and to allow the use of B30 in accordance with MARPOL Annex VI, have lowered regulatory hurdles for adopting biofuels. To this end, the assurance framework that will be the outcome of this pilot will increase stakeholder confidence in the full value of the premium paid for such green fuels, and further lower the barrier to wider adoption of biofuels in the maritime industry by addressing concerns on the integrity of the biofuels supply chain.

The vessels in this pilot are all equipped with MAN ES’s two-stroke engines. In response to participating in this pilot, Bjarne Foldager, Senior Vice President and head of Two Stroke Business, said: “This is a very important initiative by GCMD, and we are honoured to contribute. At MAN Energy Solutions we believe several solutions are required to decarbonise shipping, however all solutions needs to be verified and their scalability tested. This is best done in partnerships aligning the various actors in projects like this where we can share knowledge and build transition strategies together.”

Supporting the green corridors framework

GCMD is undertaking a bottom-up approach by convening like-minded partners across the maritime industry to participate in this pilot. Altogether, the ship owners, charterers and operators participating in this pilot project represent approximately 2,300 vessels across the container, tanker and bulker segments, and are responsible for transporting 8.4 million TEUs or 80.6 million DWT globally. With 12 vessels bunkering at three ports across three continents, the learnings from these route-based pilots will support the green corridors framework that was put forth by the Clydebank Declaration at COP26 in October 2021, of which 24 states are signatories including Singapore, the Netherlands and the US where bunkering ports for this pilot project reside.

Targeting the complex supply chain of green fuels

A first-of-its-kind in extent and complexity, the pilot aims to optimise the entire supply chain of bunker fuels by building on the learnings of past shipboard trials involving biofuels. Designed through the lens of the shipowner, piloting will start with fuel blends involving existing biofuels, such as hydrotreated vegetable oil (HVO) and fatty acid methyl esters (FAME) blended with either very low sulphur fuel oil (VLSFO), high-sulphur fuel oil (HSFO) or marine gas oil (MGO) in blends up to 30% biofuels (B30).

“There are so many good elements in this pilot,” said Unni Einemo, Director of the International Bunker Industry Association (IBIA)

“A variety of biofuels and biofuel blends have already been successfully tested, but this comprehensive pilot can help address remaining uncertainties about how these fuels work in practice by getting extensive enduser operational experiences with products involving FAME and HVO, and hopefully also crude algae oil.”

Using BunkerTrace’s digital and synthetic DNA tracing products to track marine fuels from production to vessel propulsion, the pilot will validate the authenticity of sustainable biofuels through molecular verification tests conducted on fuel samples that are collected at numerous identified points along the supply chain. Hence, the pilot will address traceability of drop-in biofuels from production, distribution, transportation, storage, and bunkering to shipboard application, providing end-to-end supply chain transparency.

Einemo continued: “The tracing element in this pilot is also really exciting. Biofuels have the potential to help the existing fleet meet IMO’s GHG reduction targets by taking lifecycle emissions into account, but one of the challenges will be certification of product origin as the sustainability of biofuels can vary significantly depending on production pathways. Biofuels can be blends coming from feedstock with different sustainability profiles, so it will be interesting to see if the DNA tracing will show mainly single-source origin products or biofuels of multiple origins. This could give us some really useful insights into the complexities of documenting the full supply chain of fuels, which will become increasingly important.”

Testing laboratories will play a crucial role in evaluating the biofuels and biofuel blends. Strategically located in Singapore, the world’s largest bunkering hub and second largest container port, GCMD also participates in the work of the Singapore Standards Council’s Chemical Standards Committee (CSC) in developing national standards for the bunkering industry. 

On this GCMD pilot, Capt. Rahul Choudhuri, Chairman of the CSC’s Technical Committee for Bunkering (Ambient Liquid Fuels), said: “GCMD’s project scope involves a detailed quality assessment of biofuels, including ascertaining their shelf life and long-term stability. As such, the involvement of global laboratory services companies in this project will provide such information that will strengthen the efforts of the Technical Committee’s Working Group on Marine Fuel Specifications and contribute to developing acceptable industry standards and practices for the use of biofuels in Singapore and eventually elsewhere.”

Adding to the pilot’s complexity is coordinating the sailing schedules of participating vessels. The aggregation of demand for biofuels at ports will result in cost savings for shipowners and fuel purchases through optimised use of land-side storage facilities and bunkering vessels and facilitate assessments of GHG emissions abatement on a well-to-wake basis of individual vessels and across fleets. Furthermore, testing these fuel blends across the container, tanker and bulker segments travelling on fixed and tramp routes and bunkering at the ports of Singapore, Rotterdam, and Houston under business-as-usual conditions will demonstrate the compatibility and stability of these biofuels in actual operating environments, thereby strengthening the overall robustness of the assurance framework.

Calling for crude algae oil supply

In an effort to further accelerate biofuels adoption as a near-term measure to reduce GHG emissions, GCMD will be leveraging this project to be the first in trialling and assessing the use of crude algae oil (CAO) as a marine fuel. CAO is a third-generation biofuel that promises substantially reduced carbon footprint, but unlike HVO and FAME, its utility has not been tested nor its supply chain established. For this part of the pilot, GCMD has assembled fuel purchasers who are committed to trialling CAO, and is inviting CAO producers with existing commercial production capacities to participate by reaching out to [email protected] by 22 August. GCMD will link up CAO fuel producers with pre-identified fuel suppliers to test and provide CAO for this pilot on a commercial basis.

In the run-up to the launch of this pilot project, GCMD is finalising the agreement details with the 18 project partners. The pilot will commence on 1 August 2022, and is expected to take 12 to 18 months to complete. 

GCMD industry partners for this project are:

  • Anglo American
  • Astomos Energy Corporation
  • Boston Consulting Group
  • BHP Singapore Pte Limited
  • BunkerTrace Limited
  • Chevron Corporation
  • CMA CGM S.A.
  • Eastern Pacific Shipping Pte. Ltd.
  • Hapag-Lloyd AG
  • MAN Energy Solutions SE
  • Nippon Yusen Kabushiki Kaisha
  • Ocean Network Express Pte. Ltd.
  • Pacific International Lines (Pte) Ltd.
  • Saybolt (Singapore) Pte Ltd
  • Stena Bulk AB
  • Swire Bulk Pte. Ltd.
  • VG (Viswa Group)
  • VPS

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 26 July, 2022

Continue Reading

LNG Bunkering

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

After departing from Saijo Shipyard, LNG fuel will be supplied directly to “Verde Heraldo” through shore-to-ship bunkering at Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

Admin

Published

on

By

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

Mitsui OSK Lines (MOL) on Friday (18 April) said the naming and delivery ceremony for the LNG-fuelled Capesize bulker, which MOL ordered for JFE Steel Corporation, was held at the Saijo Shipyard of Imabari Shipbuilding. 

The vessel was named the Verde Heraldo, which means “Green Pioneer” in Spanish, by JFE Steel President and CEO Masayuki Hirose. MOL executives including President & CEO Hashimoto were also on hand for the ceremony.

After departing from Saijo Shipyard, LNG fuel will be supplied directly to the vessel through shore-to-ship bunkering at the Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

The Verde Heraldo will sail under long-term transport contracts to supply raw materials for JFE Steel's mills, providing both reduced environmental impact and safe and reliable marine transport services.

About Verde Heraldo

LOA: 299.99 m
Breadth: 50.00 m
Draft: 18.436 m
Deadweight tonnage: 210,321 tonnes
Shipyards: Imabari Shipbuilding and Nihon Shipyard 

 

Photo credit: Mitsui OSK Lines
Published: 22 April, 2025

Continue Reading

Alternative Fuels

Indonesia and HDF Energy partner to study hydrogen solutions for maritime decarbonisation

Agreement between HDF Energy, Indonesia’s Ministry of Transportation, PLN and ASDP outlined a joint study to decarbonise Indonesia’s maritime sector using locally produced green hydrogen.

Admin

Published

on

By

Indonesia and HDF Energy partner to study hydrogen solutions for maritime decarbonisation

PT HDF Energy Indonesia, a subsidiary of French hydrogen infrastructure developer HDF Energy, recently signed a Memorandum of Understanding (MoU) with Indonesia’s Ministry of Transportation (MoT), state-owned electric utility PT PLN (Persero) and ferry operator PT ASDP Indonesia Ferry (Persero). 

The agreement outlined a joint study to decarbonise Indonesia's maritime sector using locally produced green hydrogen. The study will be conducted in collaboration with, and co-funded by, the International Maritime Organization (IMO).

The MoU was signed during the Global Hydrogen Ecosystem Summit on April 15, 2025 in Indonesia. 

The study will focus on Eastern Indonesia, a region with plenty of sun and home to many of ASDP's strategic ferry routes. HDF Energy is currently developing 23 Renewstable® hydrogen power plants in the region. These facilities combine a solar park with substantial on-site energy storage in the form of green hydrogen to provide non-intermittent, stable and 100% clean electricity to the grid, day and night.

By generating surplus green hydrogen at a competitive marginal cost, Renewstable® plants also pave the way for the supply of green hydrogen to decarbonise maritime transport. The hydrogen produced will be used to power the high-power fuel cells developed and manufactured by HDF Energy in France, a modular, reliable solution tailored to the conversion of maritime fleets.

With this project, HDF Energy is deploying an integrated approach: producing competitive green hydrogen locally and offering a zero-emission maritime vessels' propulsion solution based on its fuel cells.

ASDP, which operates one of the world's largest ferry networks, plays a critical role in connecting Indonesia's remote islands. As a key player in the maritime sector's energy transition, the company will contribute to the study to identify opportunities for converting its fleet and port infrastructures. The aim is to replace traditional diesel engines with solutions based on green hydrogen and renewable electricity, in order to significantly reduce emissions.

PLN has already taken a proactive role in launching hydrogen pilot projects across the country. The company previously signed an MoU with HDF Energy to accelerate the deployment of Renewstable® hydrogen power plants as a green alternative to diesel-based power — a collaboration representing potential investments of up to USD 2.3 billion, supported by international development institutions including the U.S. International Development Finance Corporation (DFC).

On the same occasion, HDF also signed an MoU with PT Pelayaran Bahtera Adhiguna (PT BAg), a national shipping company specialising in sea transportation services for primary energy distribution across Indonesia. The partnership reflects a joint commitment to assessing hydrogen as a clean alternative to power auxiliary systems on large vessels.

Mathieu Geze, HDF Energy's Director for APAC and President Director of PT HDF Energy Indonesia, stated: “We are proud to reaffirm our commitment to a Net Zero emission future through this strategic collaboration. Working together with PLN, ASDP, the Ministry of Transportation, and with PT Bag, we aim to place Indonesia at the forefront of green hydrogen innovation in the Asia-Pacific. Our fuel cells represent a decisive step forward in the decarbonization of maritime transport in the Indonesian archipelago, as well as a formidable showcase for French innovation on the international stage.”

On a regional scale, this partnership in Indonesia is part of HDF Energy's development drive in Southeast Asia. 

On 11 April, in the Philippines, HDF signed a MoU with the Department of Transportation to harness green hydrogen—produced by HDF's Renewstable® power plants currently under development—to power the next generation of hydrogen-fuelled maritime vessels. 

The following day in Vietnam, HDF entered into a strategic partnership with ACST, an organisation affiliated with the Ministry of Construction, to advance green hydrogen solutions, including the retrofitting of diesel ferries with HDF's hydrogen fuel cells.

 

Photo credit: HDF Energy
Published: 22 April, 2025

Continue Reading

Biofuel

Argus Media: IMO incentive to shape bio-bunker choices

IMO proposal for ship owners who exceed emissions reduction targets to earn surplus credits will play a key role in biofuel bunkering options going forward.

Admin

Published

on

By

resized argusmedia

An International Maritime Organization (IMO) proposal for ship owners who exceed emissions reduction targets to earn surplus credits will play a key role in biofuel bunkering options going forward.

22 April 2025 

The price of these credits will help determine whether B30 or B100 becomes the preferred bio-bunker fuel for vessels not powered by LNG or methanol. It will also influence whether biofuel adoption is accelerated or delayed beyond 2032.

At the conclusion of its meeting earlier this month the IMO proposed a dual-incentive mechanism to curb marine GHG emissions starting in 2028. The system combines penalties for non-compliance with financial incentives for over-compliance, aiming to shift ship owner behavior through both "stick" and "carrot" measures. As the "carrot", ship owners whose emissions fall below the IMO's stricter compliance target will receive surplus credits, which can be traded on the open market. The "stick" will introduce a two-tier penalty system. If emissions fall between the base and direct GHG emissions tiers, vessel operators will pay a fixed penalty of $100/t CO2-equivalent. Ship owners whose emissions exceed the looser, tier 2, base target will incur a penalty of $380/t CO2e. Both tiers tighten annually through 2035.

The overcompliance credits will be traded on the open market. It is unlikely that they will exceed the cost of the tier 2 penalty of $380/t CO2e. Argus modeled two surplus credit price scenarios — $70/t and $250/t CO2e — to assess their impact on bunker fuel economics. Assessments from 10-17 April showed Singapore very low-sulphur fuel oil (VLSFO) at $481/t, Singapore B30 at $740/t, and Chinese used cooking oil methyl ester (Ucome), or B100, at $1,143/t (see charts).

If the outright prices remain flat, in both scenarios, VLSFO would incur tier 1 and tier 2 penalties, raising its effective cost to around $563/t in 2028. B30 in both scenarios would receive credits putting its price at $653/t and $715/t respectively. In the high surplus credit scenario, B100 would earn roughly $580/t in credits, bringing its net cost to about $563/t, on par with VLSFO, and more competitive than B30. In the low surplus credit scenario, B100 would earn just $162/t in credits, lowering its cost to approximately $980/t, well above VLSFO.

At these spot prices, and $250/t CO2e surplus credit, B100 would remain the cheapest fuel option through 2035. At $70/t CO2e surplus credit, B30 becomes cost-competitive with VLSFO only after 2032. Ultimately, the market value of IMO over-compliance credits will be a major factor in determining the timing and extent of global biofuel adoption in the marine sector.

By Stefka Wechsler

Scenario 1, $70/t surplus credit $/t

Scenario 1, $70/t surplus credit $/t

Scenario 2, $250/t surplus credit $/t

Scenario 2, $250/t surplus credit $/t

 

Photo credit and source: Argus Media
Published: 22 April, 2025

Continue Reading
Advertisement
  • Aderco Manifold Website Advert EN
  • Consort advertisement v2
  • EMF banner 400x330 slogan
  • v4Helmsman Gif Banner 01
  • RE 05 Lighthouse GIF
  • SBF2
  • Sea Trader & Sea Splendor
  • Zhoushan Bunker

OUR INDUSTRY PARTNERS

  • HL 2022 adv v1
  • Singfar advertisement final
  • Triton Bunkering advertisement v2
  • MFT 25 01 E Marine Logo Animation
  • SEAOIL 3+5 GIF


  • Auramarine 01
  • PSP Marine logo
  • NW Logo advertisement
  • Golden Island logo square
  • Victory Logo
  • Trillion Energy
  • Synergy Asia Bunkering logo MT
  • MFA logo v2
  • Mokara Final
  • Energe Logo
  • Advert Shipping Manifold resized1
  • VPS 2021 advertisement
  • LabTechnic

Trending