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Hong Kong: Banle Energy completes its first B24 biofuel bunkering operation, commits to decarbonisation

Company partnered with ASB Biodiesel and Seven Seas Oil for the operation with Saybolt monitoring the whole process in order to ensure both quality and quantity, it tells bunkering publication Manifold Times.

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Banle Energy International Limited, a subsidiary of CBL International Limited (NASDAQ: BANL), on Friday (14 July) completed its very first B24 biofuel bunkering operation in Hong Kong.

The company partnered with ASB Biodiesel (Hong Kong) Limited and Seven Seas Oil (Hong Kong) Limited for the operation, with Saybolt as an international independent inspection and testing service provider to monitor the whole process in order to ensure both quality and quantity.

“Our company has taken the initiative to support our efforts towards the 2023 IMO Greenhouse Gas Strategy, which was adopted at the Marine Environment Protection Committee (MEPC 80) in early July,” Banle Energy said in a statement.

“The Strategy sets ambitious targets for the shipping industry to reduce the total annual greenhouse gas (GHG) emissions from international shipping by at least 20% and 70%, with a goal of achieving 30% and 80% by 2030 and 2040 respectively, compared to 2008 levels. In line with our direction focusing on ESG, we are committed to promote biofuel, an ESG related product, in an effort to reduce GHG emissions.”

Banle Energy First Biofuel Operation in HK 2

The company added biofuels were being promoted as one of the low-carbon alternatives to the existing fossil oils as they could help to reduce GHG emissions and the related climate change impact from the shipping industry.

“A proactive culture is part of our DNA, even back in 2019, our Company was one of the first movers in promoting and supplying very low sulphur fuel oil (VLSFO) to our clients, ahead of the IMO 2020 regulation that was implemented in 2020. Today, we again have taken the initiative in introducing B24 biofuel bunkering in Hong Kong,” it elaborated. 

Teck Lim Chia, Chief Executive Officer and Chairman of CBL International Limited, said: “B24 biofuel bunkering operation in Hong Kong is a significant step forward for our contribution to environmental sustainability and for the shipping industry's efforts to reduce carbon emissions. This sets the stage for the Hong Kong bunkering industry to use biofuels as a means to play its part for decarbonisation.”

Related: Banle Group makes its first move outside Asia Pacific to Istanbul and Antwerp

Photo credit: CBL International Limited
Published: 17 July, 2023

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Alternative Fuels

GCMD, BCG survey highlights three maritime decarbonisation archetypes

Survey identified three decarbonisation archetypes within the shipping industry, differentiated in their outlook, investment appetite and the challenges faced.

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RESIZED Venti Views on Unsplash ship vessel

The Global Centre for Maritime Decarbonisation (GCMD) and Boston Consulting Group (BCG) conducted an industry survey to take stock of shipowners and operators’ progress in establishing six elements needed for the shipping industry to reach net zero, according to BCG on Wednesday (27 September). 

The survey saw strong participation from 128 shipowners and operators across vessel types, fleet sizes and geographies, which collectively own or operate 14,000 merchant vessels, and account for USD500 billion in revenue.

The duo found high decarbonisation ambitions: Most respondents viewed net zero as a strategic priority, and 77% had already set concrete decarbonisation targets. The industry has also mobilised resources to decarbonise: respondents are investing 2% of their revenues into green initiatives, and 87% have personnel working toward green objectives.

The path to net zero for shipowners and operators requires six elements:

  • A robust strategy and roadmap
  • Four specific decarbonisation levers to reduce emissions: operational efficiency, technological efficiency, fuel transition, and shipboard carbon capture
  • Enablers such as dedicated sustainability teams, strategic investments in green initiatives, internal carbon prices, and digitalization

While the industry has made some progress in adopting mature and cost-effective efficiency levers, adoption of complex or nascent levers remains low. Drop-in green fuels are constrained by costs and supply-side gaps, and optimism for future cleaner fuels is yet to translate into firm commitment.

The industry is now at a pivotal point, with many shipowners and operators ramping up their decarbonisation efforts. Three-quarters of respondents plan to increase investments in green initiatives. Stakeholders can build on this momentum with a variety of supportive actions. But to be effective, they need to tailor their interventions to address the specific challenges that shipowners and operators face at each stage of decarbonisation.

Three Decarbonisation Archetypes

GCMD and BCG saw three archetypes, differentiated in their outlook, investment appetite, and the challenges faced.

Frontrunners have the greatest ambitions and are willing to invest heavily. They are pushing boundaries, adopting even nascent decarbonisation levers, such as wind propulsion and air lubrication. A majority plan to pilot shipboard carbon capture solutions by 2025. Frontrunners are also planning to adopt methanol and ammonia as early as 2026 and 2029 respectively, and the availability of fuels and bunkering infrastructure will be critical to enabling adoption.

Followers believe in decarbonising their fleets, but have tighter investment thresholds and a near-term outlook. They have kept pace with Frontrunners in adopting mature and cost-effective efficiency levers, such as main engine improvements and slow steaming, but are behind in the adoption of nascent levers, such as wind propulsion and air lubrication.

Conservatives are still early in their decarbonisation journey, likely due to a lack of awareness and familiarity with the various decarbonisation levers, and the capabilities to assess and deploy them. They are best supported by measures that increase their familiarity with the levers and help contextualise them to their specific fleets and operational requirements.

The research highlights five key actions for stakeholders:

Conduct technical pilots and facilitate data sharing, especially for nascent levers

  • Create innovative financing mechanisms to de-risk adoption of less mature levers
  • Raise awareness, contextualize levers, and build capabilities, especially among Conservatives
  • Start to build out future fuels infrastructure at ports
  • Develop mechanisms to equalize and share the costs of levers across the ecosystem
  • Maritime decarbonization is a complex, critical endeavor. The successful implementation of these five key actions demands a whole-of-value-chain approach. By working together, stakeholders can transform the maritime sector into a beacon of environmental stewardship, and set a course for a greener future where decarbonization and commercial success go hand in hand.

Note: The GCMD-BCG Global Maritime Decarbonisation Survey report can be downloaded here.

Photo credit: Venti Views on Unsplash
Published: 28 September, 2023

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Ammonia

Itochu enters MoU with firms for study of ammonia bunkering safety for container carrier

Through this cooperation, several companies and organisations will come together to discuss and study safety issues during ammonia bunkering of a container carrier that uses ammonia as a bunker fuel.

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Itochu enters MoU with firms for study of ammonia bunkering safety for container carrier

Tokyo-based Itochu Corporation on Tuesday (22 September) said it has executed a Memorandum of Understanding for a joint study of ammonia bunkering safety for an ammonia-fuelled container carrier among eight companies and organisations with the aim of implementing the use of ammonia as a bunker fuel in shipping industry. 

Through this cooperation, several companies and organisations will come together to discuss and study safety issues during ammonia bunkering of a container carrier that uses ammonia as a main fuel.

“This MOU for Ammonia Bunkering Safety for Container Carrier is an important milestone for social implementation of the use of ammonia as marine fuel on a global scale, and also a necessary step toward the realisation of the Integrated Project consisting of the construction of a global ammonia supply chain and the development of ammonia-fuelled ships by ITOCHU and its partner companies,” the firm said in a statement. 

A joint study that will be carried out under the MOU is a successive phase of the existing Joint Study Framework launched in 2021 by 34 companies and organizations including ITOCHU and Joint Study Framework for Ammonia Bunkering Safety launched in 2022 by 16 companies and organizations including ITOCHU, and focused on discussion and study of safety issues of ammonia bunkering to ammonia-fueled container carriers among experts from port authorities, container liner operators, bunkering related players and shipping company. 

A key subject of the joint study under this MOU for Ammonia Bunkering Safety for Container Carrier is the safety assessment for simultaneous operations of container cargo operations and ammonia bunkering in a container terminal, which is generally required for container carriers to achieve operational efficiencies.

ITOCHU said it is promoting a development of ammonia-fueled container carriers with potential partners following the development of ammonia-fuelled bulk carrier, which obtained Approval in Principle in 2022. ITOCHU will accelerate the development of an ammonia-fueled container carrier based on findings of this MOU for Ammonia Bunkering Safety for Container Carrier and plans to bring it to the international shipping market in late 2020s.

ITOCHU will accelerate the development of sustainable energy systems through these initiatives and ensure its contributions to the SDGs and improvement of related efforts, one of the basic policies laid out in its new medium-term management plan, as the company pursues a low-carbon society.

The eight companies and organisations are; Algeciras Bay Port Authority, Spain; Port of Rotterdam, Netherlands; CMA CGM, France; A.P.Moller Maersk A/S, Denmark; Mitsui O.S.K. Lines, Japan; Pavilion Energy Singapore, Singapore; TotalEnergies Marine Fuels, Singapore; and ITOCHU. 

Related: Itochu-led joint study of ammonia as an alternative marine fuel expands to 34 players
Related: 23 industry players participate in joint study of ammonia as an alternative marine fuel
Related: Singapore: Pavilion Energy, MOL, Total join Itochu and Vopak ammonia bunker fuel study
Related: Spain: Itochu, Peninsula enter MOU for joint development of ammonia bunkering in Gibraltar Strait
Related: Japan: “K” Line, ITOCHU and partners receive ClassNK AiP for ammonia-fuelled bulk carrier

Photo credit: Itochu Corporation
Published: 28 September, 2023

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Alternative Fuels

Singapore signs MoUs with China partners to advance maritime collaboration 

One of the MoUs was with CCS to explore collaborations to reduce GHG emission through use of zero or near-zero emission bunker fuels and marine battery technology, amongst others.

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Singapore signs MoUs with China partners to advance maritime collaboration

The Maritime and Port Authority of Singapore (MPA) on Tuesday (26 September) said it has signed three Memorandum of Understanding (MoU) with regional maritime administrations and partners in China to advance collaboration on digitalisation, decarbonisation, talent development, and information exchange. 

The MoUs were signed at the Port Authorities Roundtable 2023 hosted in Shanghai and at the sidelines of 3rd Global Sustainability Transport Forum in Beijing.

MPA-China Classification Society           

MPA signed an MoU with the China Classification Society (CCS) on 25 September 2023 on the sidelines of Global Sustainability Transport Forum in Beijing at the CCS Conference of Green and Intelligent Technologies for a Sustainable Shipping Industry. The MoU was signed by Mr Teo Eng Dih, Chief Executive of MPA and Mr Sun Feng, Chairman and President of CCS.

Under the MoU, MPA and CCS will explore collaborations to reduce greenhouse gas emission through the use of zero or near-zero emission bunker fuels and marine battery technology; co-innovate smart ships technologies with researchers, industry, and maritime startups through platforms such as PIER71™; and support the development of maritime talent and training through maritime scholarship programme and internship opportunities. Headquartered in Beijing, CCS is a full member of the International Association of Classifications Societies with over 120 offices worldwide.

MPA-Shanghai Municipal Transportation Commission

The MoU between MPA and the Shanghai Municipal Transportation Commission was announced on 22 September 2023 at the North Bund Forum in Shanghai, and signed on 24 September 2023 at the Port Authorities Roundtable 2023. The MoU was signed by Mr Teo Eng Dih, Chief Executive of MPA, and Mr Yu Fulin, Director General of Shanghai Municipal Transportation Commission.

The MoU aims to strengthen port and maritime ties between two of the world’s largest ports to foster mutual learning through information exchange on port and shipping developments, maritime policies and regulations, as well as training and research. The MoU also aims to co-develop digitalisation and decarbonisation solutions for shipping and port development. Given its role in the development of the Yangtze River delta, Shanghai is also one of China’s key transshipment centres.

MPA-Tianjin Port and Shipping Authority

An MoU between MPA and Tianjin Port and Shipping Authority (TPSA) was signed on 26 September 2023 on the sidelines of 3rd Global Sustainability Transport Forum. The MoU was signed by Mr Teo Eng Dih, Chief Executive of MPA, and Mr Wang Honghai, Director General of TPSA.

Under the MoU, MPA and TPSA will discuss issues relating to maritime digitalisation and decarbonisation; exchange information and experiences on development on shipping and regulatory framework, port developments, and maritime training; and facilitate maritime talent exchanges and collaborative opportunities in areas such as maritime research and development. 

Located in the Bohai Bay Rim Region, Tianjin Port is one of the largest ports in Northern China and one of the fastest growing Chinese ports in terms of annual container throughput.

Photo credit: Maritime and Port Authority of Singapore
Published: 27 September, 2023

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