Port & Regulatory

Glander International Bunkering dives into Carbon Intensity Indicator

Published

6 days ago

November 26, 2024

Admin

Global bunker trading firm Glander International Bunkering on Monday (18 November) published an article tackling Carbon Intensity Indicator (CII) and gives five reasons to prioritise CII:

The Carbon Intensity Indicator (CII) from the International Maritime Organization is a vital yet under-discussed regulation for decarbonizing the shipping industry that warrants more attention.

The regulation was first drawn up in 2018 and came into effect at the start of 2023, as part of the so-called short-term measures following IMO’s initial greenhouse gas strategy.

All vessels larger than 5,000 GT are assigned a CII rating based on historical data submitted to the IMO. The rating reflects the vessel’s CO2 emissions per unit of cargo capacity (DWT) per nautical mile.

Ratings range from A to E, with A at the top of the scale, and will be determined on an annual basis. Ships receiving a D rating for three consecutive years or an E rating for a single year will need to update the Ship Energy Efficiency Management Plan (SEEMP) to include corrective actions aimed at improving performance.

Achieving a higher rating makes the vessel more attractive to companies and cargo owners focused on minimizing GHG emissions. Below are five reasons to prioritize CII, even as other regulations capture more attention.

Action not Reaction

CII is a regulation where proactive planning pays the biggest dividends.

If a ship is performing at an E-grade level for most of a year, trying to get that up to an A before the year ends will yield little in the way of results, but earlier action can have a large impact.

Every shipowner should be paying careful attention to their vessel’s trade patterns, the type of fuel it uses, and which energy-saving technologies could be installed on it. Conducting this analysis early and formulating a plan to improve CII scores will yield multiple long-term benefits.

Business Competitiveness

The main reason for shipping companies to pay attention to CII is to improve their bottom line. Charterers and cargo owners with targets to lower GHG emissions may favor ships with a good CII grade, as the use of these vessels will reflect well on their own environmental performance. Equally, ships trending towards a failing grade are likely to be seen as less efficient.

A good CII score could also result in better financing options as vessels that trade more efficiently experience less idle time. Further, financial institutions focused on GHG reductions may offer favorable terms for vessels deemed more efficient with better CII scores.

Beyond this, CII is largely an indication of fuel efficiency, which should be a prime concern in any case; bunker costs are the largest expense for most shipping companies, and lowering these bills in any way possible will mean higher profitability in the long run.

CO2 Compliance

The main purpose for the CII regulation is to encourage the reduction of CO2 emissions. Decarbonization has emerged as a priority for the shipping industry, and companies that fail to keep pace with this agenda will increasingly be perceived as lacking a strategic vision for the future.

Installing energy-saving technologies, using voyage optimization tools and burning biofuel blends will all contribute to reduced CO2 emissions and better CII scores.

Decreased Costs

Prioritizing CII scores is expected to result in overall cost savings for shipping companies. This is potentially due to vessels having less idle time and trading more efficiently, which cuts bunker bills.

Steps towards compliance with CII will also assist in addressing other regulations such as the EU ETS, FuelEU Maritime and any carbon taxation the IMO may choose to impose in future. Each of these regulations comes with a cost, and early work on CII will reduce these costs in time.

ESG Focus

Finally, formulating a strong strategy on CII can play an important role in advancing your company’s environmental, social and governance (ESG) agenda.

Having a fleet with consistently high CII scores sends a message that your company is planning well for the future, recognizing its role within the energy transition and taking ESG seriously. Banking and insurance counterparties are likely to take a keen interest in ESG plans, and your work on these issues may also feed into your customers’ own ESG strategy.

Photo credit: Glander International Bunkering
Published: 26 November, 2024

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Methanol

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

Korean firm’s MoU with AE Risinājumi will see construction of Latvia’s first commercial-scale green methanol production plant, which will supply green methanol to ships in EU’s maritime fleet.

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December 2, 2024

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PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

South Korean clean energy firm PLAGEN on Friday (29 November) signed an MOU with Latvian company, AE Risinājumi, for the production of green methanol in Latvia at the “2024 Latvia-Korea Business Forum” hosted by the President of Latvia.

The agreement will result in the construction of Latvia's first commercial-scale green methanol production plant, which will supply green methanol to ships in the EU's maritime fleet, contributing to the reduction of greenhouse gas emissions from maritime transportation.

PLAGEN's MoU aims to produce 20,000 metric tonnes (mt) of green methanol per year and will begin feasibility studies in the first half of 2025, and full-scale production will begin in 2028.

With 53% of Latvia's land area covered by forests, timber production and wood processing make a significant contribution to Latvia’s economic production, which generates a large amount of forest residues and wood wastes. In addition, Latvia also has an abundance and low price of renewable electricity from wind power.

Latvia is one of the most competitive countries in the European Union, as it can produce clean methanol at a competitive price by using abundant wood waste as a raw material and renewable electricity from cheap wind power.

The use of abundant forest residues and wood wastes as a feedstock and cheap renewable electricity from wind power makes it possible to produce green methanol with a competitive price, making Latvia is one of the most competitive countries in the EU.

In the European Union, the European Emissions Trading Scheme (EU-ETS) will come into effect in 2025, requiring shipping companies to purchase carbon credits for their greenhouse gas emissions.

In addition, the EU is implementing FuelEU Maritime, which aims to reduce greenhouse gas emissions by 2% below the 2020 average by 2025 and 80% by 2050. This is expected to result in an energy transition to green methanol.

In July 2023, the International Maritime Organization (IMO) adopted a revised strategy that calls for reducing greenhouse gas (GHG) emissions from ships to net-zero by or around 2050, and plans to introduce full-scale regulations from 2027, and shipping companies have begun ordering methanol-powered ships fueled by green methanol, a carbon-neutral fuel.

“We expect to start producing green methanol in Latvia in 2028, which will reduce greenhouse gas emissions from EU maritime transport vessels and contribute significantly to the revitalization of the Latvian economy and national energy security,” said John Kyung, CEO of PLAGEN.

In November 2024, PLAGEN completed the purchase of an industrial complex and received a government permit for the construction of the country's first green methanol plant in Dongjeom Industrial Complex in Taebaek City, Gangwon-do.

The project, which will produce 10,000 mt per year, is scheduled to begin construction in the first half of 2025 and begin production in the second half of 2027.

Photo credit: PLAGEN
Published: 2 December, 2024

LNG Bunkering

Molgas commences LNG bunkering operations in United Kingdom

Firm successfully completed the first LNG bunkering of “MV Glen Sannox” since the ship was handed over to CalMac Ferries Limited last week.

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Molgas commences LNG bunkering operations in United Kingdom

Molgas Group on Friday (29 November) said it successfully completed the first LNG bunkering of the MV Glen Sannox since the ship was handed over to CalMac Ferries Limited last week, marking its entry into the United Kingdom.

“We would like to thank CalMac Ferries Limited and Ferguson Marine (Port Glasgow) Limited for their trust and long-term collaboration,” the firm said in a social media post.

“This project not only represents a significant step forward in the adoption of cleaner fuels in the maritime industry of the United Kingdom but also for the expansion of our Pan-European Supply Network for the Marine Segment to receive (bio)LNG via various supply assets across multiple countries and ports.”

Photo credit: Molgas Group
Published: 2 December, 2024

Methanol

GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 38.6 to 39.9 Mt by 2030

Information shared by the Methanol Institute meant to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Published

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GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 38.6 to 39.9 Mt by 2030

The Methanol Institute recently shared with Manifold Times the renewable and low-carbon methanol project pipeline November 2024 release produced by Finland-based GENA Solutions Oy (Green Energy Analytics).

Information from the release is meant to provide the bunkering publication’s readers with insight on renewable methanol availability, and to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Key highlights of the November 2024 release are as follows:

The renewable methanol project pipeline increased from 30.5 Mt in October to 31.8 Mt in November (+1.3 Mt). The total renewable and low-carbon methanol project pipeline grew from 38.6 Mt to 39.9 Mt.
As of November 2024, GENA tracks 113 e-methanol plants and projects with total capacity of 18.7 Mt (+0.6 Mt), 77 biomethanol plants and projects with total capacity of 13.1 Mt (+0.7 Mt), and 14 low-carbon methanol plants and projects with total capacity of 8.1 Mt.
Eight projects were added in the November release: four in China, three in Europe and one in Africa. One project was excluded from the Project Navigator due to a change in the final product.
One e-methanol project has started construction in the last month. One small-scale e-methanol plant has started production. Currently, 2.6 Mt of renewable methanol facilities are either operational or under construction.
We estimate that renewable methanol capacity by 2030 could reach 7–14 Mt (22–44% of the project pipeline). However, a lack of long-term off-take agreements and insufficient state support may result in a lower capacity range of 3–7 Mt.