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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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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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