Business
IBIA: IMO moves closer to additional flashpoint regulations
It is clear many shipping organisations and several Member States want regulations preventing the supply of bunker fuels below the SOLAS flashpoint limit of 60⁰C.
Published
3 years agoon
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AdminThe International Bunker and Industry Association (IBIA) on Monday (7 June) published an update regarding discussions of additional flashpoint regulations at the 103rd session of the Maritime Safety Committee (MSC 103) which took place in remote sessions held between 5 to 14 May 2021.
Efforts have been underway at the IMO for some time to ensure that oil-based bunker fuels, when delivered to ships, comply with the flashpoint limit of 60⁰C stipulated under SOLAS. The subject came up during the run-up to the IMO 2020 sulphur limit, amid concerns about the potential impact on ship safety associated with the move to fuels complying with the 0.50% sulphur limit required under MARPOL Annex VI.
While MARPOL is dealt with by the IMO’s Marine Environment Protection Committee (MEPC), safety aspects are also dealt with by the IMO’s Maritime Safety Committee under an agenda item called “Development of further measures to enhance the safety of ships relating to the use of oil fuel.”
IBIA, with the assistance of our Technical Working Group, has been closely involved in these discussions at IMO meetings, in IMO working groups and in IMO correspondence groups throughout, most recently at the 103rd session of the MSC (MSC 103) in May 2021.
After a week of intense debate at MSC 103, where IBIA had an active delegation supported by industry experts from our technical working group, some elements of the additional regulations under SOLAS are now near completion and on course for approval at MSC 105, which is expected to meet toward the end of the second half of 2022. MSC 103 re-established a correspondence group (CG) to continue this work, which will report to MSC 105 as there’s not sufficient time to have the CG finalise the work prior to MSC 104, which will meet later this year.
The CG has been instructed to:
- Further develop, with a view towards finalization, draft SOLAS amendments relating to reporting of confirmed cases where oil fuel suppliers have failed to meet IMO flashpoint requirements.
- Draft SOLAS amendments on actions against oil fuel suppliers that have been found to deliver oil fuel that does not comply with minimum flashpoint requirements.
- Further develop mandatory requirements regarding the documentation of the flashpoint of the actual fuel batch when bunkering.
- Further develop guidelines for ships to address situations where indicative test results suggest that the oil fuel supplied may not comply with SOLAS regulation II-2/4.2.1 (which says that no fuel oil with a flashpoint lower than 60 degrees Centigrade shall be used, unless specifically permitted).
- Collect information on and consider possible measures related to oil fuel parameters other than flashpoint.
So where are we with all this? Will it get us closer to the aim of enhancing the safety of ships? There are conflicting views on how to best achieve the goal, which is to prevent supply of bunkers that fails to meet the SOLAS flashpoint limit or contain substances deemed to put ship and crew safety at risk.
It is clear from the desires of the many shipping organisations with consultative status at the IMO, and several Member States, that they want regulations targeting the supply side to prevent fuels below SOLAS limit from being supplied to ships in the first place, and to ensure suppliers face consequences if it still happens.
Discussions on flashpoint regulations during MSC 103
It is hard to summarise progress at MSC 103, but items which are closest to completion include a requirement for Contracting Governments (i.e. signatories to SOLAS) to report confirmed cases where oil fuel suppliers have failed to meet the requirements specified in SOLAS regulation II-2/4.2.1 (including a definition of confirmed cases) and to “take action as appropriate” against suppliers that have been found to deliver fuels that do not comply with SOLAS.
On the subject of mandatory requirements regarding documentation of the flashpoint of the actual fuel batch when bunkering, the majority view appears to support requiring that suppliers should report the actual flashpoint of the fuel delivered to the ship, similar to the MARPOL requirement for reporting the actual sulphur content on the bunker delivery note, as opposed to a declaration that the oil fuel supplied is in conformity with the SOLAS II-2/4.2.1 regulation.
IBIA has been questioning, during our input at IMO on the subject, whether this will make a difference given that suppliers already have to provide a material safety data sheet (MSDS) to the ship, which should guarantee that the fuel meets the SOLAS flashpoint limit, and because the supplier has also entered a contractual obligation to meet the flashpoint limit as fuels are largely sold against ISO 8217 specifications, which include a 60⁰C flashpoint limit.
At MSC 103, IBIA highlighted that we have yet to hear a good reason for requiring the actual flashpoint to be reported to the ship, as opposed to a statement that it meets the 60⁰C limit, because operationally the actual flashpoint should not matter; normal safety procedures still need to be applied. IBIA also explained that it is common practice during fuel testing to stop the test to determine flashpoint once the sample has been heated to 70⁰C or above, because that suggests that the 60⁰C limit has been met and no further testing is considered necessary. As such, the practical considerations and consequences do not appear to merit requiring an actual flashpoint value to be documented.
IBIA also commented on a proposal by ICS and the Cook Islands in MSC 102/6/2 to require a representative sample for the purpose of testing flashpoint to be taken at the time of delivery, which seeks to mandate the sampling location at the ship’s inlet manifold. IBIA told MSC 103: “This goes beyond the provisions for the MARPOL delivered sample, which is a guideline. The realities of bunkering operations means that it is often unsafe for a representative of the fuel supplier to come aboard the ship to witness sampling at the ship’s inlet manifold, and it is also usually impossible to monitor remotely as the ship’s inlet manifold will be completely out of sight from the bunker delivery vessel. Conversely, it is often possible to view sampling at the bunker outlet manifold from the deck of the receiving vessel, making this both safer and more practical.”
What was clear during these discussions was that there is strong desire to put more responsibility on the supply side to provide compliant fuels, but limited understanding of how testing for flashpoint actually works. Any justification for requiring an actual value to be reported as opposed a statement that it is above 60°C is vague.
Following discussion, MSC 103 endorsed an updated work plan aiming to complete measures related to the flashpoint of fuel oil at MSC 105, meaning the correspondence group will have a lot of work to do to provide fully developed draft amendments to SOLAS and associated guidelines.
How big is the problem?
Fuel testing agencies have data on flashpoint from fuels actually delivered to ships. While statistics vary a little between them, ISO/TC28/SC4/WG6, the ISO committee in charge of ISO 8217, has gathered data from most of the major testing agencies, which should give a fair overall representation.
The ISO comparative study showed that for the first half (H1) of 2020, there had been a small increase in distillate marine (DM) fuel samples with a flashpoint of below 60°C compared to during all of 2018, but it was still below 1% of all DM fuel samples. It found that 99.9% of very low sulphur fuel oil (VLSFO) residual marine samples had a flash point meeting the 60°C limit, and that 0.08% had a flash point between 55°C and 60°C. In both 2018 and H1, 2020, more than 99.5% of HSFO samples met the 60°C flashpoint limit. Overall, then, it seems VLSFOs have been no more prone to off-spec flashpoint than HSFOs, while the share of DM samples below the limit showed a small increase during 2020.
Interestingly, an information document submitted to IMO by China (MSC 102/INF.18), reporting on lessons learned from three explosions in fuel oil tanks and two explosions of components of fuel oil booster unit/systems, showed that only one of those cases related to a fuel with a flashpoint below the SOLAS limit, reportedly measured at 37°C. In the other cases, the flashpoint had been measured above, and in some cases well above, 60°C.
The paper drew a clear causal link between the fuel with the flashpoint measured at 37°C and an explosion in a fuel oil storage tank, but the explosions in the other cases were linked to other factors. In the case where the flashpoint was measured at 37°C, it was reported that there was no flame screen fixed in opening of the oil mist box, and that moving flames ignited vapour after the fuel oil in the storage tank was heated
Incidents caused by low flashpoint fuels, fortunately, appear to be very rare. IBIA has previously been informed by the fuel testing arm of Lloyd’s Register, GMT/FOBAS, that LR has no records of incidents caused by low flashpoint fuels from 1970 and up to 2010, only for auto-ignition point.
Photo credit and source: International Bunker and Industry Association
Published: 9 June, 2021
Biofuel
Argus Media: Bunkering sector needs deeper dive into B24 bio bunker fuel market
‘As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector,’ says Mahua Chakravarty of Argus.
Published
2 days agoon
October 4, 2024By
AdminAhead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:
MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?
B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.
It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.
B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).
As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.
MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?
Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.
We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.
This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.
MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?
The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.
As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.
We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.
The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.
Participants are encouraged to register for the free event via the custom link here.
Related: Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector
Photo credit: Argus Media
Published: 4 October 2024
Bunker Fuel
Brazil: Raízen launches new bunkering operation in Itaqui
Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.
Published
2 days agoon
October 4, 2024By
AdminBrazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).
The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).
“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.
In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.
Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).
Related: Brazil: Bunker One and Acelen partner to launch bunkering operation outside Port of Itaqui
Photo credit: Raízen
Published: 4 October, 2024
Business
Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer
Oberholtzer, a finance executive with over 25 years of experience, joins Infineum from Shell, where he has held various senior positions including Senior Vice President of Shell Finance for Chemicals and Products.
Published
2 days agoon
October 4, 2024By
AdminInternational fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.
Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.
Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.
During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.
In 2011, he joined Shell’s Mergers and Acquisitions team in the U.S., leading key projects such as the launch of Shell Midstream Partners and the Eagle Ford divestment. He subsequently managed finance teams in Trading & Supply, covering European Gas & Power, Global Crude, and Global Products & Operations.
Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”
Photo credit: Infineum
Published: 4 October, 2024
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