Alternative Fuels
Interview: IRClass answers key questions on alternative bunker fuels
Mr. P.K. Mishra of Indian Register of Shipping, goes into details on new bunker fuels including challenges they pose on classification societies and expertise IRClass offers to overcome them.
Published
3 weeks agoon
By
AdminSingapore-based bunkering publication Manifold Times recently interviewed Mr. P.K. Mishra, Managing Director of Indian Register of Shipping (IRClass), on alternative bunker fuels including challenges they pose on classification societies and expertise IRClass offers to overcome them.
He also touched on the viability of nuclear for commercial maritime:
MT: Can you describe the new challenges IMO2030/2050 bring for classification societies, specifically in approving the new breed of vessels using alternative bunker fuels?
The IMO climate goals bring several challenges for classification societies, particularly in approving vessels using alternative fuels. One of the main challenges is ensuring the safety, reliability, and environmental compliance of these fuels, such as hydrogen, ammonia and methanol. Each alternative fuel has unique properties and hazards, requiring updated safety protocols, risk assessments, and design standards.
Classification societies are working towards developing new rules and guidelines for the construction, operation, and maintenance of vessels utilising such alternate fuels.
Another challenge is ensuring global uniformity and consistency in safety standards while addressing regional regulatory differences, which requires extensive collaboration with stakeholders, including shipowners, shipyards, equipment manufacturers, and regulatory bodies.
Sustainability is another aspect – though taken up at IMO level, the classification society has to provide the correct input/understanding to the ship owners and ship operators with regards to its compliance/usage on board and also about the benefits on CII and other incentives as will be decided at IMO.
MT: What are the expertise and solutions IRCLASS offers to overcome these challenges, and how do they differ from the competition?
Indian Register of Shipping brings a wealth of expertise in addressing the challenges posed by the new fuel ecosystem. Our approach is characterized by a deep understanding of both traditional and emerging technologies, while addressing specific needs.
We provide comprehensive services that include risk assessment, feasibility studies, and technical guidance for the integration of alternative fuels into vessel design and operations. Our unique differentiation lies in our commitment to innovation and our proactive approach to developing guidelines and rules for new technologies. IRS invests extensively in research and development to stay ahead of industry trends and regulatory requirements.
Additionally, our global presence combined with local expertise allows us to offer customized support, ensuring compliance with both international and regional regulations. This dual advantage of global reach and local presence, along with our strong industry partnerships, sets us apart from our competitors.
MT: In your opinion, which alternative bunker fuel offers the best solution for shipowners in meeting future IMO2030/2050 and FuelEU/EU ETS requirements? What are its pros and cons?
There isn't a one-size-fits-all answer when it comes to the best alternative fuel for meeting decarbonisation goals. However, each fuel option has its own advantages and disadvantages:
- LNG (Liquefied Natural Gas) is currently the most mature and widely available alternative fuel, with an existing bunkering infrastructure. It offers a significant reduction in CO2 emissions and virtually eliminates sulphur oxides (SOx) and particulate matter.
However, LNG still emits methane (a potent greenhouse gas) during extraction and transport, which poses environmental concerns. It is also a fossil fuel, which may limit its long-term viability under future decarbonization goals and therefore may be considered as a transitionary fuel. - Hydrogen has the potential for zero-emission shipping when produced from renewable sources. It is versatile and can be used in fuel cells or internal combustion engines.
The storage and handling of hydrogen pose significant challenges due to its low energy density and high flammability. The production of green hydrogen is also currently energy-intensive and costly. - Ammonia does not emit CO2 when burned, making it a promising zero-carbon fuel. It is easier to store and transport than hydrogen and has a well-established production and distribution network. Ammonia is however toxic and poses serious safety risks if not handled properly. The combustion process needs to be optimized to minimize nitrous oxide emissions.
- Methanol is easy to handle, biodegradable, and has a lower carbon footprint compared to conventional fuels. It can be produced from renewable sources like biomass and captured CO2. Methanol has a lower energy density than traditional fuels, which could affect ship range. It also still emits CO2, although at a reduced rate.
At this point in time when no green fuel is under production at scale and available, it is difficult to guess which future fuels will survive, or which of ammonia, hydrogen, methanol, LNG, LPG or additives-rich biofuels might dominate. Rather than one fuel, the industry will select different fuels for different types of ship, and it is important not to eliminate any of the current options too early as an industry.
MT: Taking into consideration future environmental regulations, what variables should a bunker tanker owner/operator, based in different regions around the world, take into consideration when choosing newbuilding criteria?
When choosing newbuilding criteria, bunker tanker owners/operators should consider several key variables in light of future environmental regulations:
Fuel Type and Flexibility: The choice of primary and secondary fuels is critical. Owners/operators should consider fuels that are compliant with current and anticipated future regulations, including IMO2030/2050 and regional requirements like the EU's FuelEU and ETS. Flexibility to switch between fuels could provide a competitive advantage.
Design and Technology: The vessel's design should incorporate energy-efficient technologies, such as hull optimization, advanced propulsion systems, and waste heat recovery systems. Hybrid or dual-fuel engines may provide flexibility and compliance advantages.
Operational Region: Regional regulations and fuel availability will play a significant role. Understanding the environmental regulations of the operating regions and the availability of compliant fuels and bunkering infrastructure is essential.
Lifecycle Costs: Consider the total cost of ownership, including capital expenditure (CapEx) and operating expenditure (OpEx). Investments in more sustainable technologies may have higher upfront costs but could result in lower operational costs over time due to fuel efficiency and reduced emissions penalties.
Safety and Compliance: Ensuring the vessel meets all international and regional safety and environmental regulations is paramount. This includes having the necessary certifications and adopting best practices for environmental performance.
MT: Taking into consideration future environmental regulations, what variables should a shipowner operating in different maritime sectors take into consideration when choosing newbuilding criteria?
Different maritime sectors (e.g., bulk carriers, container ships, tankers) have unique operational profiles, which impact fuel consumption and emissions. Shipowners should select designs and technologies that best align with their specific operational needs and regulatory requirements.
Fuel Type and Future-Proofing: Selecting the right fuel is critical, considering not only current but also anticipated future regulations. Ships that can operate on multiple fuel types may have a competitive advantage, providing flexibility as fuel availability and prices change.
Energy Efficiency Measures: Implementing energy-efficient technologies, such as advanced hull designs, air lubrication systems, and energy recovery devices, will help reduce fuel consumption and emissions, contributing to compliance with future regulations.
Technology and Innovation: Incorporating advanced digital tools for fuel optimization, emissions monitoring, and predictive maintenance can enhance operational efficiency and regulatory compliance.
Environmental Impact: Consideration of the vessel's overall environmental footprint, including emissions, noise pollution, and waste management, is increasingly important. Compliance with stricter environmental standards may require additional investment in technologies that reduce emissions and improve sustainability.
Cost Impact: The costing and future availability of fuel depending upon the vessel’s operating profile plays a major role in selecting a new building project.
MT: Would nuclear power ever be considered a viable solution to power commercial maritime trade? What are its technological challenges to become a mainstream energy source for powering sea-going vessels, and how could they be resolved?
Nuclear power has the potential to be a viable solution for powering commercial maritime trade due to its high energy density, zero emissions during operation, and ability to provide continuous power over long durations without refuelling.
However, there are several technological, regulatory, and societal challenges that need to be addressed for nuclear power to become a mainstream energy source for sea-going vessels. Resolving these challenges would require significant advancements in nuclear technology, robust international collaboration on safety and regulatory frameworks, and addressing public and political concerns about the use of nuclear power in commercial shipping.
The challenges also involve economic viability compared to conventional ships, infrastructure deficit such as for port infrastructure required for nuclear ships.
Photo credit: Indian Register of Shipping
Published: 23 September, 2024
Bunker Fuel
China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October
Global marine bunker development will be among main topics of discussion at the 7th International Petroleum and Natural Gas Enterprises Conference (IPEC).
Published
2 days agoon
October 11, 2024By
AdminThe 7th International Petroleum and Natural Gas Enterprises Conference (IPEC) is taking place at Zhoushan, Zhejiang province, China between 16 to 17 October.
The agenda, provided by the Zhoushan High-tech Zone Administrative Committee to foreign event media partner Singapore bunkering publication Manifold Times, is as follows:
16 October
- Registration and sign-in for participating guests
- Meetings between Zhejiang Provincial and Zhoushan Municipal leaders with VIPs
17 October
Morning
Plenary Session of the Conference (Oriental Hall, Zhoushan International Conference Center)
- Leader’s speech, guest keynote speech, signing of major projects
Discussion Topics [*17 October, 2pm to 5pm]
Focus Topic Meeting: Global marine bunker development*
Location: Haitian Hall, Haizhongzhou International Hotel, Zhoushan
14:00-14:05 - Opening of the Meeting
14:05-14:15 - Speech by Leaders
14:15-14:30 - Announcement of "Top Ten Global Bunkering Ports" and "Top Ten Global Bunkering Companies"
14:30-14:40 - Announcement of Construction Work of Northeast Asia Bonded Marine Fuel Bunkering Hub
14:40-14:50 – Launch ceremony of Zhoushan "White-list" Bunker Barge Mass Flow Meter System Pilot Certification Programme
14:50-15:10 - Signing Ceremony
15:10-16:10 - Keynote speech
16:10-16:35 - Coffee break
16:35-17:05 - Roundtable forum (Topic: Facing green and low-carbon transformation in global shipping, how do marine fuels change in response to the trend?)
17:05-17:35 - Roundtable forum (Topic: The road to develop high-quality offshore fuel bunkering metering under the new developments)
17:35-17:40 - Moderator’s summary
Utilising financial innovation, futures and spot cooperation to promote the construction of a hub for the allocation of bulk commodity resources*
Location: Putuo Hall, Zhoushan International Conference Center
Open development of global shipping trade*
Location: Donghai Hall, Hilton Zhoushan
International iron ore trade development*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan
Development of China's new chemical materials industry during the “15th Five-Year Plan”*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan
Development of non-ferrous metal mining industry*
Location: Lianhua Ocean Hall, Hilton Zhoushan
16 and 17 October
International maritime law of the free trade port (zone)
Location: Fortune Hall, Zhoushan CaiFu Hotel
Photo credit: Zhoushan High-tech Zone Administrative Committee
Published: 11 October, 2024
Alternative Fuels
SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore
‘It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,’ says Vitol’s Head of Asia Mike Muller during a panel discussion.
Published
2 days agoon
October 11, 2024By
AdminEnergy trader Vitol’s Head of Asia Mike Muller on Wednesday (9 October) said the company is anticipating being granted a LNG bunker licence in Singapore soon.
“It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,” he said.
Mike Muller made the announcement during the Viewing the Energy Transition Through the Lens panel discussion at the 23rd Singapore International Bunkering Conference (SIBCON).
“We expect to see growth in LNG use as a bunker fuel for at least another decade, and probably longer,” he added.
On the increasing uptake of biofuels, he said Vitol is seeing demand for biofuel blended bunkers in Singapore roughly doubling every year at the moment, heading for around 1 million mt this year and maybe 2 million mt next year.
“Demand for 100% biofuel from shipping customers is also starting to pick up as of this year and we have led the way in commissioning new IMO type 2 barges to fulfil this demand - indeed an important Asian customer of ours has taken three deliveries of B100 UCOME biofuel just in recent weeks here in Singapore,” Muller explained.
Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).
The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.
The time charter agreement with Avenir is for one newbuild 20,000m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total
Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.
Related: Vitol secures LNG bunker vessel trio with time charter deal and newbuilding order
Photo credit: Vitol
Published: 11 October, 2024
Methanol
Methanol Institute: Expanding global capacity and strategic developments (Week 40, 30 Sep to 6 Oct 2024)
This week was dominated by the outcome of the IMO MEPC which considered proposals for mid-term policy measures capable of driving an energy transition in international shipping down to just three options.
Published
2 days agoon
October 11, 2024By
AdminThe Methanol Institute, provides an exclusive weekly commentary on developments related to the adoption of methanol as a bunker fuel, including significant related events recorded during the week, for the readers of bunkering publication Manifold Times:
The news agenda this week was dominated by the outcome of the IMO Marine Environment Protection Committee (MEPC) which considered proposals for mid-term policy measures capable of driving an energy transition in international shipping down to just three options, with a likely greenhouse gas (GHG) reduction pathway selected next year.
A majority of IMO member states are now understood to be in favour of a levy on carbon emissions but the lack of urgency remains an issue. Observers recognised that support for such a mechanism should be optimistic based on the meeting’s outcome though no action should be expected before 2025.
Methanol marine fuel related developments for Week 39 of 2024:
CPG Bunkering Expands Mozambique Operations with New Tanker and Capacity Upgrade
Date: September 30, 2024
Key Points:
CPG Bunkering has expanded its capacity at the Port of Maputo in Mozambique by adding a new delivery vessel, the CPG Alma, under an extended agreement with the Maputo Port Development Company. The expansion allows for reliable at-berth supplies and more efficient service for increased bunker-only calls. Additionally, the company will evaluate the potential supply of alternative bunker fuels, such as biofuels, LNG, methanol, and ammonia, during the extension period to support future green fuel adoption.
ESL Shipping Emphasizes Urgency for New Fuels to Meet Decarbonization Goals
Date: October 1, 2024
Key Points:
ESL Shipping’s Managing Director, Matti-Mikael Koskinen, highlighted the urgent need for new fuel options to meet decarbonization targets, as discussed at the IMO MEPC82 meeting. ESL is committed to achieving net-zero emissions by 2040 and is exploring a range of alternative fuels including LNG, bio-gas, and methanol. The company’s approach varies based on vessel types and operational conditions, particularly in challenging ice-class routes off Finland. Koskinen stressed the importance of overcoming fuel availability and cost barriers to successfully transition to greener shipping solutions.
Vioneo to Use Green Methanol for Sustainable Plastics Production
Date: October 2, 2024
Key Points:
Vioneo, a new sister company to Maersk under AP Moller Holding, is set to produce sustainable chemicals and plastics using green methanol as a feedstock. The company will construct a 300,000 mt/year plant in Antwerp to manufacture polypropylene and polyethylene. This project marks a strategic expansion beyond methanol's use as a bunker fuel, leveraging green methanol for large-scale, fossil-free production of essential materials, reflecting Maersk's broader commitment to sustainability and innovation.
193 Alternative Fuel Ship Orders Placed in Q3, Led by LNG and Methanol
Date: October 3, 2024
Key Points:
According to the Ship & Bunker News Team, 193 new vessel orders including alternative propulsion were registered in the third quarter of 2024, with a majority focused on LNG and methanol. The container segment accounted for most of the orders, including 86 LNG-fueled and 39 methanol-fueled vessels. This growth, driven by the container and car carrier segments, highlights the industry's continued investment in alternative fuels to meet environmental regulations and future-proof fleet operations.
Peninsula to Boost Methanol Bunkering with Three New Tanker Charters from HTM
Date: October 4, 2024
Key Points:
Peninsula has entered into an agreement with Hercules Tanker Management (HTM) to charter three newly ordered 7,700 DWT methanol-capable chemical tankers, currently being built at the Jiangmen Hangtong Shipyard in China. The vessels, set for delivery in Q2 2025, will support the company's strategy to expand its alternative fuel bunkering services. This partnership enhances Peninsula’s capability to deliver biofuel blends and methanol, ensuring readiness for future green fuel demand.
IMO MEPC 82: DNV Highlights Progress on Net-Zero Framework Negotiations and Emission Control Areas
Date: October 7, 2024
Key Points:
The 82nd session of the IMO Marine Environment Protection Committee (MEPC 82) focused on advancing the development of a net-zero framework for the maritime industry. Delegates discussed strategies to achieve net-zero GHG emissions by 2050, including establishing a GHG fuel intensity standard, which would set clear emission reduction targets for vessels. The committee also considered a new GHG pricing mechanism to incentivize low-carbon fuel adoption.
Additionally, amendments to MARPOL Annex VI were adopted, designating new Emission Control Areas (ECAs) in the Norwegian Sea and Canadian Arctic, which will implement stricter emission regulations starting in 2026-2027. The session also addressed technical and operational measures to improve energy efficiency, reflecting the IMO's commitment to enhancing sustainability in shipping operations globally. DNV emphasized that while progress has been made, negotiations will continue to refine and finalize the proposed net-zero framework in upcoming sessions.
For more details, visit the full article here.
Photo credit: Methanol Institute
Published: 11 October, 2024
China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October
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