South Korea’s Ministry of Oceans and Fisheries and Korea Ocean Business Corporation recently held a launch ceremony in Seoul for a KRW 1 trillion (USD 696 million) infrastructure fund that will be used to support the development of storage facilities for green marine fuels and bunkering vessels. 

Out of the KRW 1 trillion, KRW 600 billion will be invested to build port storage facilities capable of supplying LNG, methanol, and ammonia, and the remaining KRW 400 billion will be invested in constructing four new LNG and ammonia bunkering vessels by 2030. 

The move is expected to meet growing demand for green bunker fuels for domestic vessels and ensure reliable fuel supplies for foreign ships calling at domestic ports.

The ministry also announced that the Ulsan Hyundai Liquid Cargo Terminal Expansion Project was selected as the new fund’s first project to support the demand for methanol bunker fuel for domestic and foreign vessels. The total cost of the project is KRW 240 billion, of which KRW 130 billion will be provided by the infrastructure fund. 

In addition, the government plans to strengthen LNG supply capabilities through the Yeosu Myodo LNG Hub Terminal Project scheduled as the second project to be supported by the fund. 

Minister of Oceans and Fisheries Kang Do-hyung, said: “Through the infrastructure fund, the government will flexibly expand the eco-friendly ship fuel supply infrastructure in line with future demand so that our ports can continue to secure a competitive edge as a global hub port.”

Photo credit: Ministry of Oceans and Fisheries of South Korea
Published: 22 January, 2025

United European Car Carriers (UECC) on Monday (20 January) said it has been able to eliminate surcharges for its customers under FuelEU Maritime as proactive adoption of green fuels has drastically reduced its financial exposure to the newly implemented regulation.

Currently, switching to low-carbon biofuels is generally seen as the most effective route to achieve compliance with progressively tighter carbon intensity reduction targets and thereby avoid penalties under FEUM, which is designed to promote uptake of alternative fuel technologies towards the goal of net zero.

However, this approach will typically entail higher fuel costs for shipping companies given that biofuels - which can deliver respective reductions of 85% and 100% in well-to-wake and tank-to-wake emissions - cost between 50-150% more than conventional fossil fuels, while there is also limited feedstock supply.

An additional ‘Energy Surcharge’ levied on shippers to compensate for this price differential can be as much as 2-5% with the use of biofuel, according to UECC’s Energy & Sustainability Manager Daniel Gent.

But he said: “UECC will change absolutely nothing about its pricing structure in relation to FEUM.”

Gent explained this is largely due to the fact that UECC has already achieved significant reductions in carbon intensity by expanding the use of biofuels across its 15-vessel fleet since 2020. 

It has also adopted liquefied biomethane (LBM) on its five dual and multi-fuel LNG Pure Car and Truck Carriers under the Sail for Change sustainability initiative launched last year that is supported by several major vehicle manufacturers.

“Consequently, we are already running a compliance surplus in relation to FEUM with our current energy mix and this is expected to extend into the early 2030s,” he says.

“We have previously informed our customers that their support for our investment in multi-fuel LNG vessels would insulate them against regulatory penalties and this is exactly what is happening here. This demonstrates the clear benefits of being ahead of regulation, investing in progressive technology and in the process of generating savings for our customers.”

UECC’s fleet decarbonisation effort has focused on investments in eco-friendly newbuilds - with two more multi-fuel LNG battery hybrid PCTCs currently on order - as well as piloting alternative fuels, in addition to operational efficiencies and technical measures such as waste heat recovery and hull anti-fouling.

The company has rigorous fuel selection criteria based on sustainability, technical suitability and commercial viability. Its bio-products are compliant with Renewable Energy Directive (RED) criteria and sourced from Annex 9 feedstocks in line with regulatory requirements, while all fuels used are ISCC-certified.

Through a proactive fuel procurement strategy, UECC has secured volumes of alternative fuels for the longer term through agreements with suppliers like Titan Clean Fuels for LBM and ACT Commodities for biofuels to promote green fuel bunkering infrastructure. It is also diversifying its sources of supply, such as through a recent first truck-to-ship LBM refuelling operation with Naturgy in Spain.

“LBM from certain feedstocks or including carbon capture are the ‘heavy lifters’ on our decarbonisation journey and we see huge potential in these fuels,” Gent says.

UECC is firmly on track to achieve a minimum 45% reduction in carbon intensity by 2030 to surpass the IMO target, while it is also set to exceed the required FEUM reduction of 31% by 2040 versus a 2020 baseline of 91.16 grams of CO2 equivalent per megajoule.

This means that UECC will have a sufficient compliance surplus to provide a pooling opportunity for third-party vessels under FEUM “so that all stakeholders can benefit from our investments”, according to Gent. But he says the company is not resting on its laurels and intends to make further alternative fuel investments with the aim of phasing out oil-based fossil fuels by 2040.

“As we are going ‘above and beyond’ in terms of our commitment to alternative fuels such as LBM and biofuel, we expect to have a significant compliance surplus under FEUM. With the investments we are planning in such fuels, UECC will never be in a position of needing to buy or borrow compliance units,” Gent concluded.

Related: UECC wraps up first truck-to-ship bio-LNG bunkering operation in Spain
Related: JLR joins UECC bio-LNG initiative to decarbonise maritime transport
Related: Titan to supply biomethane bunker fuel to UECC multi-fuel ships with new deal
Related: UECC and Titan team up on bio-LNG bunkering operations in Port of Zeebrugge

Photo credit: United European Car Carriers
Published: 22 January, 2025

Safetytech Accelerator on Tuesday (21 January) said it has successfully completed three technology feasibility studies as part of its flagship Methane Abatement in Maritime Innovation Initiative (MAMII). 

The studies were done in collaboration with Chevron, Carnival Corporation, Shell and Seapeak.

The results of these feasibility studies showed strong potential to cut fugitive methane emissions in the maritime industry.

MAMII is exploring options to advance these research projects to on-ship trials as soon as possible. 

While methane slip - unburnt methane released during the combustion process - remains the largest source of methane emissions on ships, emissions across the LNG supply chain, from loading to engine delivery, are also a concern. 

These fugitive emissions are often unintended and short-lived, but identifying, quantifying, and mitigating them is essential to achieving industry-wide decarbonization goals.  

Xplorobot, Sorama and framergy were selected by MAMII to help address the vital need to detect, measure and capture fugitive methane emissions from LNG-fuelled ships.

Each provider selected for the trials brings expertise in a different technology, including: 

• Xplorobot: Provides a handheld device and AI-powered platform to detect and measure fugitive methane on ships using computer vision to pinpoint leak locations, overlay real-time emission rate data, and integrate seamlessly with existing systems for quick issue resolution without requiring specialised training. 
• Sorama: Develops acoustic cameras that detect fugitive gas by visualizing sound and vibration fields in 3D. Integrated AI and onboard software identify anomalies and classify sounds, enabling direct leak localization without complex analysis. 
• framergy: Specialises  in adsorbents and catalysts for methane emission management. Their product, AYRSORB™ F250GII, captures and stores fugitive methane by selectively filtering methane from the air, leveraging its ultra-high surface area and coordination chemistry. 

Feasibility Study Results Show Promise For Methane Abatement 

Xplorobot conducted a detailed evaluation of their Methane Compliance Solution, focusing on its efficacy in detecting and quantifying methane emissions on LNG carriers and LNG-powered vessels. 

The study targeted emissions from the warm side of the gas fuel line and both planned and unplanned venting events. Utilising comparable on-land data, this desktop analysis assessed how the technology would perform in maritime settings. 

The technology demonstrated accuracy levels of +/-30% for emissions over 500 grams per hour and +/-50% for emissions between 100 and 500 grams per hour, thanks to a refined neural network algorithm calibrated through controlled release experiments. Xplorobot's solution promises to reduce inspection time dramatically with the ability to inspect 50 to 100 components in under an hour—sometimes as quickly as 10 minutes. 

This efficiency, combined with automated digital emission tracking and compliance reporting, make the solution cost-effective. The next step is to deploy the kit in the field to further validate and optimise the technology for widespread adoption across the maritime industry.  

Photo credit: CHUTTERSNAP from Unsplash
Published: 22 January, 2025