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Glander International Bunkering highlights regulations driving up bio bunker fuel uptake

Increased regulations in shipping means biofuel use is heavily incentivised in the short term as use of conventional fuels becomes more constrained by regulatory costs, says firm.

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Global bunker trading firm Glander International Bunkering, which recently received ISCC EU and ISCC Plus certificates for its biofuel operations in Norway and Geneva offices, continued its guide on what to look out for when procuring biofuel bunkers, focusing on volumes as well as regulations in this article:

Biofuels have rapidly emerged as one of the most popular alternative marine energy choices over the past few years as the shipping industry bears down on its greenhouse gas emissions.

The advantages of using biofuels are clear: they work as a drop-in alternative to conventional bunkers, with little or no changes needed to ships’ engines or delivery infrastructure to use them, and result in net reductions in GHG emissions based on their full lifecycle assessment when produced from second or third generation (sustainable) feedstocks.

Biofuels already help buyers today meet their ESG targets and will soon be one of the solutions to meet the mandatory blend-in requirements as set out in the FuelEU Maritime Regulation, starting in 2025.

Bunker buyers can take on these fuels immediately, without significant up-front investment or any long-term commitment to them.

Biofuel volumes

Demand for these fuels has grown rapidly during the past months. Rotterdam saw 791,000 mt of sales for biofuel/marine fuel blends last year, up by 163% from 2021, while Singapore kicked off biofuel sales in 2022 with 140,000 mt of blended product sold in total. The main products in ARA are B30 and in Singapore B24, which means 30% respectively 24% of biofuel blended with conventional marine fuel. The fuels are already available at a wide range in other ports, and volumes can be expected only to climb in the coming years.

These sales initially came in the course of trials from shipping companies looking to try out the fuels in their engines on a one-off basis, but regular sales are now increasingly being seen.

The first thing to note about biofuels in the marine fuel space is that when we talk about them, it’s almost always blends being referred to, typically with up to about 30% biofuel content mixed with VLSFO, HSFO or MGO. Higher ratios of biofuel content, even up to 100%, have been shown to work in conventional engines but are as yet rarely used.

Regulations driving biofuel uptake

There is no doubt that one of the main drivers for the shipping industry’s transition towards carbon neutrality is the increasing and rapidly developing regulatory requirements.

Firstly, IMO has now set a firm target for reaching net-zero greenhouse gas emissions from international shipping approaching the year 2050.The target includes checkpoints for 2030 and 2040 of 20 and 70% respectively absolute reductions (striving for 30% and 80%). In addition, the uptake of zero or near-zero fuels are to represent at least 5% by 2030. Consequently, the shipping industry cannot just wait until 2050, but will be working on reaching these targets already now. The targets of absolute emissions reductions can only be reached by transitioning from traditional to alternative fuels.

Secondly, the CII regulations has now entered into effect. From this year all vessels larger than 5,000 GT will have calculated for them a CII rating based on historical data submitted to the IMO. The rating is a calculation of the CO2 the vessel emitted per unit of cargo capacity per nautical mile.

The rating will come as a letter between A and E, with A at the top of the scale, and ratings will be determined on an annual basis. Ships receiving a D rating for three years or an E rating for a single year will need to implement a corrective action plan as part of the ship energy efficiency management plan (SEEMP) setting out their plans to improve their performance and rating. Alternative fuel such as biofuel will have a significant positive impact on the rating.

Finally, IMO is set to adopt further regulation – such as a price on carbon emissions as well as a green fuel standard – in the coming years to further drive the transition.

But separately from the global effort on decarbonisation led by the IMO, the European Union has also been pursuing its own regulatory agenda.

Last year the EU came to a deal on including shipping within the union’s emissions trading system (ETS). All ships over 5,000 GT in size will be included in the ETS, covering 100% of CO2 emissions from intra-EU voyages and 50% of emissions from voyages between EU ports and the rest of the world. In practice, this means that all vessels calling a European port will be affected by the EU ETS.

The system will be phased in starting in 2024 with 40% of emissions covered, 70% in 2025 and 100% from 2026 onwards. Shipping companies will be required to buy an equivalent number of “EU Allowances” (representing one tonne of CO2 emissions) to match their annual total fleet emissions, and deliver these to the authorities each year.

Europe also has a separate regulation called FuelEU Maritime, which will require shipping firms to gradually incorporate renewable fuels in their bunker purchases in order to lower the GHG intensity of the fuel burned. Like the ETS it is a gradually phased in system with the same coverage in terms of ship size and geographical scope. Meanwhile, the FuelEU Maritime sets requirements not only for CO2, but for other greenhouse gases as well.

These regulatory drivers are just the start; further developments can be expected from the IMO in the coming years, and over the longer term the US and China may also seek to impose their own rules if they are dissatisfied with the global regulations.

All of this will mean biofuel use is heavily incentivised in the short term as the use of conventional fuels becomes more constrained by regulatory costs.

Related: Glander International Bunkering provides guide on buying bio bunker fuels

Photo credit: Glander International Bunkering
Published: 28 August, 2023

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Environment

Singapore, Indonesia and Malaysia conduct table-top exercise to strengthen oil spill response

Exercise focused on several aspects including collaboration between government agencies and oil spill response firms to optimise oil spill response resources for incidents in Straits of Malacca and Singapore.

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The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF. As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS). The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS. The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026. Photo credit: Maritime and Port Authority of Singapore Singapore, Indonesia and Malaysia conducts table-top exercise to strengthen oil spill response

The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. 

The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF.

As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. 

The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS).

The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS.

The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 12 February, 2025

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LNG Bunkering

South Korea’s HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping.

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South Korean HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction (HJSC) has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping. 

The contracted vessel is a large-scale LNG bunkering ship measuring 144 meters in length, 25.2 meters in width, and 12.8 meters in depth. It is capable of supplying up to 18,000㎥ of LNG in a single operation to LNG-fuelled ships. 

Equipped with two independent LNG tanks certified by the International Maritime Organization (IMO), the vessel features a dual-fuel propulsion system that allows it to operate on both eco-friendly LNG and marine diesel oil. This advanced system ensures both stability and operational efficiency while effectively reducing carbon emissions.

Yoo Sang-cheol, CEO of HJSC, said, “As global LNG demand and supply continue to grow, the LNG bunkering vessel market will see steady expansion.” 

“We will focus on strengthening our expertise in building eco-friendly, high-value-added ships, securing a competitive edge that aligns with our legacy as a leader in shipbuilding.”

This achievement follows the company's success in 2014 when it built the world’s first 5,100㎥ LNG bunkering vessel for Japan’s NYK Line.

“This accomplishment also reinforces South Korea’s shipbuilding industry's efforts to enhance competitiveness by securing high-efficiency, environmentally friendly vessels in the global market,” HJSC said. 

“Notably, with the anticipated expansion of oil and natural gas drilling and the resumption of LNG exports under the second Trump administration in the US, the market for crude oil carriers, LNG carriers, and LNG bunkering vessels is expected to see significant growth.”

“This trend is likely to benefit the country’s highly competitive shipbuilding industry.”

 

Photo credit: HJ Shipbuilding & Construction
Published: 12 February, 2025

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Bunker Fuel

AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Firm announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay of South Africa.

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AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Marine services provider AMSOL recently announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay in South Africa.  

“Now flying the South African flag and an important platform for the ongoing training and development of tanker-endorsed South African seafarers, the Uhambo has commenced offshore bunkering operations in Algoa Bay, delivering locally refined marine fuel on behalf of its oil industry client,” the company said in a statement shared with Manifold Times

In November 2024, the South African Revenue Services (SARS) released new protocols including amendments under sections 21, 60, and 120 of the Customs and Excise Act. Some amendments pertain to the storage of imported bonded fuel goods in designated customs and excise storage warehouses.

SARS' move was anticipated to facilitate bunkering to resume off Algoa Bay, which has been shut down since September 2023

AMSOL’s Chief Commercial Officer Graham Dreyden, said: “Our ability to comply with stringent operating regulations and legislation as well as international maritime and marine standards underpins AMSOL’s track record.”

“This is the case for operations in Algoa Bay and we have worked closely with authorities and relevant stakeholders to ensure all legislative requirements for offshore bunkering operations are met.”

AMSOL’s CEO Dan Ngakane said he is positive about the growth of the company and its broader impact. 

“We have acquired five vessels in the last 4 years in order to meet the needs of our clients in the region for reliable and professional, risk managed marine solutions,” he said.

“In leading growth in the South African maritime sector, we remain committed to meeting the highest standards for environmental protection, safety and compliance whilst developing the talent required to keep our industry growing and moving forward.”

AMSOL said it is the only marine services business operating in the region with a proven track record in effective management of risk-mitigated fuel transfers through a portfolio of services that include in-port bunker delivery, offshore bunkering, ship-to-ship fuel transfer services and offshore terminal management.

Related: ENGINE: SARS releases final rules for South Africa’s offshore bunkering
Related: SARS seeks public comments on amendments to bonded bunker fuel storage regulations
Related: South African Revenue Service issues media statement on detention of bunkering vessels
Related: ENGINE: Algoa Bay bunkering at a standstill as authority detains barges – sources
Related: ENGINE: Algoa Bay closure spurs surge in bunker calls at nearby ports

 

Photo credit: AMSOL
Published: 12 February, 2025

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