Hapag-Lloyd increases amount of bunkered biofuel blend to 213,000 mt in 2023

German container shipping firm Hapag-Lloyd on Tuesday (19 March) said it increased the volume of biofuel during the reporting period to around 213,000 metric tonnes (mt) of bunkered biofuel blend in 2023.

According to its Sustainability Report 2023, the firm consumed 120,500 mt of biofuel in the previous year. This has helped Hapag-Lloyd reduce the absolute greenhouse gas emissions of its fleet by 0.8 million tonnes in 2023 compared to the previous year. 

The firm said it has increasingly been using biofuels since 2022 in order to achieve its emission reduction targets. 

“Our objective here is to obtain these fuels using sustainable raw materials such as used cooking oil – from which fatty acid methyl ester (FAME) is manufactured – that is mixed with fossil VLSFO2 in varying proportions. Greenhouse gas emissions from biofuels are over 80% lower compared to standard fuels,” it noted in the report. 

During the reporting period, 45 vessels in the fleet were refuelled with biofuel. 

This occurred mostly in Rotterdam, but also increasingly in Singa- pore, and, for the first time, in Genoa, Barcelona and Jebel Ali. In Antwerp, ultra low sulphur biofuel was also used for the first time instead of very low sulphur biofuel, which has been typically used up until now. 

Hapag-Lloyd also noted that there was still no ISO standard for biofuels. The new ISO standard is expected in 2024. 

“However, the availability of biofuels has improved significantly in the meantime. Other bunker ports are being examined, including in South Korea, West Africa, South Europe and on the west ​​coast of the USA,” it said.

“Volume contracts have been concluded with major biofuel suppliers to create security of supply.”

Although the firm sees fossil LNG primarily as a bridging fuel, it said propulsion technology using liquefied gas is viable for the future since LNG-powered vessels can also be operated with biological or synthetic methane as an alternative in the mid-term. 

“They then have the potential to be operated with greatly reduced emissions. We are currently keeping a close eye on relevant developments. In this context, Hapag-Lloyd is already working with potential producers of biological and synthetically produced methane,” it said. 

An initial project design for synthetic methane is currently in development.

“We expect to be able to bunker the first quantities from 2026. For the current year 2024, we have planned a pilot bunkering programme with biomethane.”

“When exactly it will be possible to use synthetic methane on our dual-fuel vessels is still unclear at the current time.”

“An advantage of synthetic methane is that methane slip during manufacture is a great deal less than with the production of fossil LNG. It can also be monitored more effectively.

To further promote the use of biomethane, the firm is  part of a consortium for a Green & Digital Corridor between Rotterdam and Singapore. The consortium aims to reduce CO2 emissions on this main trading route by 20% to 30% by 2030. 

Hapag-Lloyd is part of the biomethane track and is working towards a pilot bunkering programme in Singapore in 2024. 

Note: The full ‘Sustainability Report 2023’ can be viewed here. 

Photo credit: Hapag-Lloyd
Published: 21 March 2024