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Hexagon Energy and Oceania ink MoU on low-emissions ammonia bunkering in Pilbara region

Under the MoU, Hexagon and Oceania will work together in demonstrating feasibility of supply of low-emissions ammonia as a bunker fuel for iron ore bulk carriers via ship-to-ship transfer.

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Hexagon Energy and Oceania ink MoU on low-emissions ammonia bunkering in Pilbara region

Hexagon Energy Materials Limited (Hexagon) on Monday (13 May) announced that it has signed a Memorandum of Understanding (MoU) with Oceania Marine Energy Pty Ltd (Oceania) regarding the potential development of a low-emissions ammonia bunkering business at Dampier, in the Pilbara region of Western Australia.

While the primary market for the WAH2 Project’s low-emissions ammonia remains substitution of coal in thermal power generation in Japan and South Korea, ammonia bunkering has the potential to be a valuable, additional, domestic market. 

“This would involve the supply of low-emissions ammonia as a fuel for the bulk carriers that ship iron ore exports from Australian producers to customers across Asia,” Hexagon said in an announcement on the Australian Securities Exchange. 

“This collaboration has the potential to create a new Australian business that uses locally-produced low-emissions ammonia to help decarbonise Australia’s iron ore exports.”

Under the MoU, Hexagon and Oceania have committed to work together with the intention of:

  • Demonstrating the feasibility of the supply of low-emissions ammonia as a bunker fuel for iron ore bulk carriers via ship-to-ship transfer;
  • Confirming demand for ammonia bunkering and potential commercial terms;
  • Defining an appropriate development plan; and
  • Engaging with government and other stakeholders.

Hexagon and Oceania will jointly engage with stakeholders (including ship owners, fuel traders, iron ore producers, port authorities and government) to complete their market assessment, develop an appropriate business model and development plan and pursue preliminary offtake agreements for low-emissions ammonia as a bunker fuel. It is envisaged that this work will be completed in Q4 2024.

The MOU has a two-year term to allow for subsequent collaboration past the anticipated final investment decision for Hexagon’s WAH2 Project.

Hexagon’s target remains WAH2 front end engineering design (FEED) entry in mid-2024 following completion of planned technical work and finalisation of conditional commercial agreements for key aspects of the project (noting that a bunkering offtake agreement is not considered a pre-requisite for FEED entry, rather an opportunity to add incremental value during FEED). Confidential negotiations continue and Hexagon intends to have the key agreements in place to support the start of FEED in Q3 2024.

Chief Executive Officer Stephen Hall, said: “This Memorandum of Understanding with Oceania Marine Energy represents another significant step for Hexagon’s WAH2 low-emissions ammonia project.

It offers the opportunity to establish a new bunkering industry in Western Australia that could play a leading role in decarbonising Australia’s iron ore exports for the benefit of Australia and its trading partners in Asia. This opportunity offers market diversity, requires no additional capital expenditure and is complementary to Hexagon’s primary objective of exporting low-emissions ammonia from WAH2 to help decarbonise power generation in Asia.”

“I look forward to making further announcements as Hexagon continues to progress confidential negotiations with key input providers, potential off-takers and strategic partners.”

 

Photo credit: Hexagon Energy
Published: 14 May, 2024

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Alternative Fuels

DNV: Use of ammonia as a bunker fuel among highlights in IMO MSC 109

Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted and interim guidelines for the general use of ammonia as fuel were approved during session.

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RESIZED CHUTTERSNAP on Unsplash

Classification society DNV on Saturday (7 December) shared a statutory news article that provides a summary of the 109th session of the International Maritime Organization’s (IMO) Maritime Safety Committee (MSC 109) including adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel and approved draft interim guidelines for ammonia as a marine fuel.

The following is an excerpt from the news update relating to bunker fuels:

The 109th session of the IMO’s Maritime Safety Committee (MSC 109) was held from 2 to 6 December 2024. Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted, and interim guidelines for the general use of ammonia as fuel were approved. The IGF Code was amended to improve the safety of ships using natural gas as fuel. MSC 109 further approved draft SOLAS amendments to enhance the safety of pilot transfer arrangements and progress was made on the new safety code for Maritime Autonomous Surface Ships.

Meeting highlights

  • Adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel
  • Adopted amendments to the IGF Code for ships using natural gas as fuel
  • Approved draft interim guidelines for ammonia as fuel
  • Approved draft amendments to SOLAS Regulation V/23 and the related performance standards to improve the safety of pilot transfer arrangements
  • Advanced the non-mandatory Code on Maritime Autono- mous Surface Ships (MASS)

Amendments to mandatory instruments 

Ammonia cargo as fuel (IGC Code) MSC 109 adopted amendments to Paragraph 16.9.2 of the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) to enable the use of ammonia as fuel on ammonia carriers.

An MSC circular to encourage the voluntary early implementation of the amendments to Chapter 16 was approved. 

The amendments will enter into force on 1 July 2026.

Safety of ships using natural gas as fuel (IGF Code)

MSC 109 adopted amendments to the International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code), based on experience with the code since its entry into force in 2017.

The amendments include:

  • Clarified application provisions
  • Alignment with the IGC Code on suction wells for fuel tanks extending below the lowermost boundary of the tank
  • Alignment with the IGC Code on discharge from pressure relief valves to discharge to tanks under certain conditions
  • Clarified requirements to fire insulation for deck structures in relation to fuel tanks on open deck
  • Clarified requirements for hazardous ducts through non-hazardous spaces and vice versa
  • Updated requirements for the hazardous zone radius for fuel tank vent mast outlets, increasing to 6 metres for zone 1 and 4 metres for zone 2

The amendments will enter into force on 1 January 2028.

Goal-based new ship construction standards

Goal-based standards (GBS) for the new construction of bulk carriers and oil tankers are, conceptually, the IMO’s rules for class rules. Under the GBS, IMO auditors use guidelines to verify the construction rules for bulk carriers and oil tankers of class societies acting as Recognized Organizations (Resolution MSC.454(100)).

Initial GBS verification of Biro Klasifikasi Indonesia (BKI) BKI has requested GBS verification of their ship construction rules for bulk carries and oil tankers. MSC 109 agreed that the BKI rules comply with the GBS, provided non-conformities and observations are rectified and verified in a new audit.

North Atlantic wave data (IACS Recommendation No. 34, Revision 2) MSC 109 noted that IACS is currently undertaking a review of its Common Structural Rules (CSR) for bulk carriers and oil

tankers to reflect advances in data, materials, technologies and calculation methodologies. The CSR are implemented in the individual class rules of the IACS members, which are subject to compliance with the GBS.

MSC 109 further noted that IACS has now issued a revision of the North Atlantic wave data to ensure more scientific data as a basis for the rule formulas in the CSR. The new scatter diagram in Revision 2 of IACS Recommendation No. 34 shows the probability of occurrence of different sea states and is based on wave data from advanced hindcast wave models combined with ships’ AIS data for all SOLAS vessels in the period from 2013 to 2020.

MSC 109 agreed that an observation from the initial CSR audit in 2015, that the scatter diagram in Revision 1 of IACS Recommendation No. 34 was based on past statistics, was now considered addressed.

MSC 109 further invited IACS to provide more information about the assumptions, modelling and technical background for Revision 2 of IACS Recommendation No. 34, and agreed that the GBS audit of the revision to follow should be carried out in conjunction with the consequential rule changes in the CSR.

New technologies and alternative fuels 

Identification of gaps in current IMO instruments MSC 109 continued its consideration of potential alternative fuels and new technologies to support the reduction of GHG emissions from ships from a safety perspective. The intention is to identify safety obstacles, barriers and gaps in the current IMO instruments that may impede the use of the various alter- native fuels and new technologies.

MSC 109 agreed to add “swappable traction lithium-ion battery containers” to the list of alternative fuels and new technologies. The list already includes fuels and technologies such as ammonia, hydrogen, fuel cell power installations, nuclear power, solar power, wind power, lithium-ion batteries and supercapacitor energy storage technology.

Recommendations to address each of the identified barriers and gaps in the IMO regulatory framework will be considered in a Correspondence Group until MSC 110 (June 2025). Application of the IGF Code

MSC 109 agreed on draft amendments to SOLAS to clarify that the IGF Code applies to ships using gaseous fuels, whether they are low-flashpoint or not. The term “gaseous fuels” was added to the definitions in SOLAS Regulation II-1/2 and to the application provisions of SOLAS Regulations II-1/56 and 57.

The draft amendments are expected to enter into force on 1 January 2027, subject to adoption by MSC 110 (June 2025).

Carriage of cargoes and containers

Ammonia as fuel

MSC 109 approved draft interim guidelines for the safety of ships using ammonia as fuel.

Ships carrying liquefied gases in bulk (IGC Code)

MSC approved draft amendments to the IGC Code to incorporate the large number of Unified Interpretations developed since the latest major review of the code, which entered into force in 2016. The primary objective of the draft amendments is to remove ambiguity and promote the consistent implementation of the IGC Code requirements.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 9 December, 2024

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Events

Argus Media organises Green Marine Fuels Asia Conference in Singapore

Conference will explore Argus’ global analysis on alternative bunker fuels, LNG benefits in the net zero pathway, global clean fuel policy and regulation, and growing demand of biofuels in the region.

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Argus Media organises Green Marine Fuels Asia Conference in Singapore

Independent global energy and commodity market intelligence provider Argus Media is organising the Argus Green Marine Fuels Asia Conference on 18 to 19 February in Singapore.

The event will be held at the PARKROYAL COLLECTION Marina Bay, 6 Raffles Boulevard, Singapore 039594.

With Argus’ expertise in the biofuels, methanol, ammonia, hydrogen and LNG sectors – the conference will bring together key players from across these value chains to meet with port authorities, shipowners, charterers, technology, finance, regulators, storage and terminals.

Over 40 experts and key industry stakeholders will be offering diverse insights into the competitive and progressively complex global marine fuels market in this key region.

Key speakers for the event include Kenneth Lim, Assistant Chief Executive (Industry & Transformation), Maritime and Port Authority of Singapore (MPA); Torben Nørgaard, Chief Technology Officer - Energy & Fuels, Maersk Mc-Kinney Moller Center; Jerid Soo, Assistant General Manager (Global Sustainability and ESG), Pacific International Lines; Kazuki Yamaguchi, General Manager and Head, Maritime Energy Solution, Energy Transformation Business Group, Sumitomo Corporation; and Mahua Chakravarty, Editor, Marine Fuels (Asia), Argus.

The conference’s agenda will include as Argus’ global analysis on alternative bunker fuels, LNG benefits in the net zero pathway, global clean fuel policy, incentives and regulation, perspectives by shipowners and charterers on new fuels investments and the growing demand of biofuels in the region.

The event will offer plenty of opportunities for networking including extended coffee and lunch breaks, networking drinks reception and using the networking platform and app to schedule meetings with attendees in advance.

Note: More information on the Argus Green Marine Fuels Asia Conference can be found here including an early bird rate if registrations are completed by 10 January. 

 

Photo credit: Argus Media
Published: 3 December, 2024

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Alternative Fuels

DNV: Alternative-fuelled newbuilding orders slow down in November

Although results show a slowdown of new orders for alternative-fuelled vessels in November, this follows the strongest month ever in October and the overall trend remains strong, says Jason Stefanatos.

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DNV: Alternative-fuelled newbuilding orders slow down in November

Latest figures from classification society DNV’s Alternative Fuels Insight (AFI) platform saw that a total of 27 new orders for alternative fuelled vessels were placed in November 2024.

LNG continues to be the main driver, accounting for 23 vessels, with most of these (15) coming from the container segment. A strong month also for the car carrier segment, with six new LNG-fuelled vessels added to the orderbook.

Four new orders for ammonia-fuelled vessels were also registered.

DNV: Alternative-fuelled newbuilding orders slow down in November

DNV: Alternative-fuelled newbuilding orders slow down in November

DNV: Alternative-fuelled newbuilding orders slow down in November

Although this was a slightly slower month for new orders for alternative-fuelled vessels, it follows a record-breaking month in October, and a strong surge in activity since the summer months. 

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “Although these results show a slowdown of new orders for alternative-fuelled vessels in November, this follows the strongest month ever in October, and the overall trend remains strong.

“LNG remains the headline story with exceptional activity since the summer months. This is clearly being driven by the container segment, where the vast majority of new orders in 2024 have been for alternative-fuelled vessels.”

Related: DNV: October marks strongest month ever for alternative-fuelled newbuild orders

 

Photo credit: DNV
Published: 3 December, 2024

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