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ICCT study: China domestic low-carbon marine fuel regulation needed by 2030

Required rate of fuel carbon intensity reduction would be dauntingly high for the industry, if regulation is delayed until 2046 after expiration of mandatory energy efficiency standards.

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An International Council on Clean Transportation (ICCT) working paper published in June 2022 found it was essential for China’s coastal shipping sector to implement low-carbon marine fuel regulations no later than 2030 – in order for the country to meet its 2060 carbon neutrality goal.

To date, the world is still waiting to learn what “carbon neutralization” means for China, and what an action plan for reaching this target by 2060 will look like. 

The ICCT paper takes a first look at China’s domestic coastal shipping sector and provides recommendations for actionable long-term decarbonisation pathways designed to avoid exceeding its current share of transportation-sector CO2.

If low-carbon marine fuel regulations are delayed until 2046 after expiration of mandatory energy efficiency standards, the required rate of fuel carbon intensity reduction would be dauntingly high for the industry, said the report. 

This was one of the key findings of the study in the working paper Decarbonizing China’s coastal shipping: The role of fuel efficiency and low-carbon fuels, which was written by authors Xiaoli Mao and Zhihang Meng. 

Using 2019 CO2 emissions, energy consumption and activities as a baseline for the report, the authors projected those out to 2060 for a 2°C-aligned scenario, 1.5°C-aligned scenario and business as usual future.

ICCT study: China domestic low-carbon marine fuel regulation needed by 2030

“We considered two broad categories of policy actions in addition to adopted policies to reach the goals of 2°C-aligned and 1.5°C-aligned scenarios: improving energy efficiency and reducing the carbon intensity of shipping fuel,” said the authors in the report. 

“Finally, because fuel carbon intensity regulations (or low-carbon fuel regulations) are crucial to decarbonising the shipping industry and are currently less mature and more costly than energy efficiency improvements, we considered two different implementation schedules for each of the 2°C-aligned and 1.5°C-aligned scenarios, while keeping their targets intact.”

ICCT study: China domestic low-carbon marine fuel regulation needed by 2030

In 2019, China’s coastal shipping sector emitted about 45 million tonnes of CO2, or roughly 4.5% of total CO2 emissions from China’s transportation sector. 

“With no additional policies, CO2 emissions from China’s domestic coastal shipping would more than triple to more than 162 million tonnes in 2060,” said the report on another finding. 

With the help of mandatory energy efficiency standards as well as low-carbon fuel regulations, CO2 emissions from China’s domestic coastal shipping could peak by 2040 and fall significantly by 2060. 

As such the report proposed two possible pathways for achieving this:

  • With mandatory energy efficiency standards tightened every five years between 2025 and 2045 for newbuild ships, and with low-carbon fuel regulations slowly phasing in from 2030, CO2 emissions could peak by 2040 and decrease by 56% in 2060 relative to the 2019 baseline, which is aligned with the 2°C-target set for the transportation sector in the ICCSD report. The average carbon intensity of the fleet could fall by 79% relative to the 2019 baseline.
  • With more stringent mandatory energy efficiency standards to be implemented between 2025 and 2045, and with low-carbon fuel regulations phasing in five years earlier (beginning in 2025), CO2 emissions could peak by 2035 and decrease by 83% in 2060 relative to the 2019 baseline, which is aligned with the 1.5°C-target set for the transportation sector in the ICCSD report. The average carbon intensity of the fleet could fall by 92% relative to the 2019 baseline.

The authors noted that their model will need to be recalibrated to see if the proposed measures will be sufficient to put industry on the track to true decarbonisation, once the official action plan to reach the sector’s 2060 target is announced. 

“Although we highlighted the importance of low-carbon fuel regulations, we did not analyze the availability or cost of low carbon marine fuels in China. 

“Future work will be needed to understand the marine fuel market in China, to develop certification standards for low-carbon marine fuels, to analyze the cost of developing a fuel supply chain for them, and to identify policy options to promote first movers,” they said. 

The full working paper Decarbonizing China’s coastal shipping: The role of fuel efficiency and low-carbon fuels can be downloaded from the ICCT website here.

 

Photo credit: International Council on Clean Transportation (ICCT)
Published: 1 July, 2022

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Biofuel

GREENMARINE and Vertoro to accelerate adoption of lignin-alcohol as marine fuel

Like fossil oil, liquid lignin can be used as a platform for fuel, chemical and material applications.

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Methanol marine fuels consultancy GREENMARINE and Vertoro, a Maersk-backed Dutch start-up focused on developing liquid lignin technology which can be used as a bunker fuel, has signed an agreement to jointly accelerate the market validation and commercial roll-out of lignin-alcohol as sustainable marine fuels.

“We at GREENMARINE Group are excited to join forces with Vertoro to bring their revolutionary lignin alcohol blend fuel to market,” said Fredrik Stubner, founder and CEO of GREENMARINE Group.

“This breakthrough technology redefines sustainable maritime fuels, delivering environmental benefits and cost efficiencies, paving the way for a greener, more competitive shipping industry.”

Dr. Michael Boot Boot, co-founder & co-CEO Vertoro, replied, “GREENMARINE Group has an excellent track record as a match maker for green fuel producers with engine manufacturers and shipping companies, opening many doors for us on both the fuel validation and offtake side.”

Vertoro, founded in 2017, produces liquid lignin exclusively from sustainably sourced forestry and agricultural residues by means of a patented thermochemical process. Like fossil oil, liquid lignin can be used as a platform for fuel, chemical and material applications.

Related: Maersk invests in Dutch start-up Vertoro to develop green lignin marine fuels

 

Photo credit: CHUTTERSNAP from Unsplash
Published: 11 July 2025

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Newbuilding

Singapore: Pinnacle Marine’s first B100 fuelled utility boat starts 1,000-hour research trial

Newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.

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The 50th vessel constructed by local boat builder Pinnacle Marine (Singapore) Pte Ltd, namely President 100, is starting 1,000 hours of real-time research trials in collaboration with several parties from Wednesday (9 July) onwards, it says.

Powered by B100 biodiesel, the newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.

It will be participating in trials with Maritime Energy & Sustainable Development Centre of Excellence (MESD), Weichai Singapore, China Classification Society, Pacific International Lines (PTE) Ltd, Abo Shoten, Ltd. / 株式会社安保商店 , Abo Singapore, Wilmar International, Gulf Marine, Amspec Testing & Services, and AYK Engineering and Consulting.

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The President 100, Pinnacle Marine’s first full biodiesel utility boat, was launched on Tuesday in the presence of over 100 guests.

“Our latest vessel, President 100, merges legacy and future. Named after our first aluminium boat (“President”) and inspired by B100 biodiesel, it leads the charge for our next 50 vessels — many of which will embrace green technology,” stated Pinnacle Marine in a LinkedIn post.

“The launch was amazing, with strong turnout from across the maritime sector — authorities, shipowners, operators, agencies, chandlers, researchers, offshore engineers, and petrochemical suppliers.”

It added: “We’re excited to see how it paves the way for wider adoption of B100 biodiesel — a cleaner, sustainable path for Singapore’s harbour craft sector.”

 

Photo credit: Pinnacle Marine (Singapore) Pte Ltd
Published: 9 July 2025

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Newbuilding

BHP awards charter contracts for two ammonia dual-fuelled bulk carriers

BHP continues to work with the maritime industry to develop an ammonia bunkering plan for the two vessels when they are delivered from 2028.

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Global resources company BHP on Wednesday (2 July) signed contracts with COSCO Shipping Bulk Co., Ltd., a subsidiary of COSCO shipping Group (COSCO Shipping) for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers.

The new vessels to be built under this arrangement will be two of only a handful of vessels in the world capable of using ammonia as a bunker fuel.

The two vessels, expected to be delivered from 2028, will primarily transport iron ore from Western Australia to Northeast Asia.

When run on lower or low to zero greenhouse gas (GHG) emissions ammonia, these vessels will be capable of reducing GHG emissions by at least 50% and up to 95% on a per voyage basis compared to a conventionally fuelled voyage.

The five-year time charter contracts are expected to contribute towards a reduction in the GHG emissions intensity of BHP chartered shipping.

BHP continues to work with the maritime industry to develop an ammonia bunkering plan – the process of fuelling ships with ammonia – for the two vessels when they are delivered from 2028.

Sourcing lower and low to zero GHG emissions ammonia is subject to an ongoing tender process.

 

Photo credit: BHP
Published: 9 July 2025

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