Biofuel

Interview: Monjasa gearing up for an increase in biofuel bunkering in Singapore

Morten Østergaard Jacobsen, Managing Director Asia, elaborates on Monjasa’s next steps in alternative marine fuels following its inaugural biofuel bunkering in Singapore, amongst others.

Published

5 months ago

August 28, 2024

Admin

In an exclusive interview with Singapore-based bunkering publication Manifold Times, Morten Østergaard Jacobsen, Managing Director Asia of international bunkering firm Monjasa, recently highlighted the company’s next steps in biofuel and other alternative marine fuels following its inaugural biofuel bunkering in Singapore as well as the importance of International Sustainability & Carbon Certification (ISCC) EU certificate and Proof and Sustainability:

MT: Could you share with us your recent biofuel delivery milestone in Singapore?

Monjasa supplied 2,000 metric tonnes (mt) of B24 to container vessel YM Wonderland on 24 July 2024. The supply was organised and supplied by Monjasa using barge MT Radiance, which is one of three barges controlled by Monjasa in the Port of Singapore.

MT: Following Monjasa's inaugural biofuel bunkering operation at Singapore port on 24 July, what long term plans does the firm have to expand its biofuels bunkering foothold at the world's largest bunkering port?

We are pleased to have successfully sourced, shipped and delivered biofuels in the Port of Singapore for the first time. An important milestone for our seafarers, trading and operations departments towards enabling the low-carbon fuel mix.

Looking at the overall biofuels landscape in Singapore, we expect to see more and more inquiries, not least because of our global operations and 15 offices which enables us to organise biofuels supplies on a string of supply locations across the Americas, Europe, the Middle East and Asia.

MT: Why is it necessary for bunkering firms to obtain ISCC EU certification and Proof and Sustainability (PoS) documents for biofuel bunkering operations worldwide?

We believe that there are several advantages of being ISCC-certified and able to issue a PoS along with a biofuel delivery. The PoS is for shipowners the first step towards compliance with maritime decarbonisation legislation, as it provides a credible and verified account of the emission savings associated with the biofuel product.

MT: Do scenarios exist where biofuel bunkering operations can be conducted without the above credentials? And what are the risks shipowners take when they lift a biofuel bunker stem without these credentials?

It is not a legal requirement to be ISCC-certified or issue a PoS with a biofuel delivery. At the end of the day, it is the responsibility of the shipowner to document savings, which is not possible without a PoS. The risks linked to delivering a non-certified product is that the product does not live up to expected standards.

In the biofuels feedstock market, products can easily be claimed to be sustainable, but it is the PoS that ensures the product is in fact sustainably produced, sourced, etc. This is why the ISCC system brings value by verifying the supply chain.

MT: Aside from PoS documents, what other checks does Monjasa conduct to ensure biofuels supplied comes from legitimate sustainable sources?

In addition to the ISCC, Monjasa conducts internal due diligence with respect to our ISO standards, including HSEQ and compliance evaluations. We also conduct prior checks of suppliers on certification alignment with the ISCC database.

MT: Even though palm-based biofuel is not recognised by the EU as a sustainable energy source, the product may still be useful as a bunker fuel for ships travelling outside EU. Will Monjasa consider including palm-based biofuel within its product portfolio for clients plying non-EU routes? And what are the commercial benefits in doing so?

In general, Monjasa will deliver the product requested by a customer, but if the feedstock is not RED-compliant, we are not able to issue a PoS along with the delivery.

MT: Since biofuels are produced from a variety of sources, how does Monjasa balance interests between clients choosing biofuels produced from particular feedstocks given limited avails while ensuring quality in these cases?

Monjasa seeks to establish supply chains, where there is availability and demand, for it to make commercial sense. Yes, there is limited availability of certain types of biofuels, which means we sometimes have to source from multiple suppliers to establish one delivery and meet customer requirements.

ISCC does not ensure quality. This is ensured through other standards, such as the ISO 8217. Currently, there is no universal reference to an industry standard, but we are hopeful that the recently issued ISO8217:2024 can become a commonly referred to standard for biofuels within the industry. Until then, we continue to observe market developments on biofuel quality standards as well as conduct tests on the products delivered in alignment with the standard preferred by the customer.

MT: Besides biofuels, does Monjasa have any plans to introduce other alternative fuels to the Singapore bunker market?

Our ambition is to remain a relevant trading partner and offer the full fuel mix requested by the shipping industry. Right now, our focus is on educating our colleagues on the new fuel types to ensure that Monjasa is ready to supply these products once a more liquid low-carbon fuels market emerges. But it’s not up to the bunkering industry alone.

We need to work together, shipping companies, suppliers and authorities to establish a viable way forward. Right now, I believe that we are all awaiting further regulation to push demand up and ensure the green shipping transition in due time.

MT: With SIBCON 2024 around the corner, are there any exciting announcements/plans that Monjasa will be sharing on its operations in Singapore and Asia?

We have recently added a third barge, the newbuild MT Zale, to our supply operations in the Port of Singapore, which already consists of MT Zmaga and MT Radiance. As a direct result, we are servicing more customers than ever and seeing a substantial increase in volumes compared to previous years.

Looking at the wider Asian region, we are ready to size new opportunities when the timing is right. Just like we did when expanding to Ho Chi Minh City and Shanghai during the recent years.

Photo credit: Monjasa
Published: 28 August, 2024

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Bunker Fuel

Singapore: KPI OceanConnect, partners deliver first renewable diesel to cruise industry

Delivery of bunker fuel from Neste was made at Singapore Cruise Terminal, with the fuel sourced from Vopak Penjuru Terminal and transported to a cruise ship via barge “Maple”, operated by Global Energy.

Published

5 days ago

January 9, 2025

Admin

Singapore: KPI OceanConnect, partners deliver first renewable diesel to cruise industry

Global provider of marine energy solutions KPI OceanConnect on Wednesday (8 January) said it partnered with Neste and Global Energy on the first successful delivery of renewable diesel, also known as HVO100, for the cruise industry in Singapore.

The landmark delivery of Neste MY Renewable Diesel™ took place in November 2024 and marked a significant milestone for the Asia-Pacific marine sector.

Neste MY Renewable Diesel™ is made from 100% renewable raw materials and is a direct replacement for fossil diesel, helping the industry meet its sustainability goals.

The use of this renewable diesel can result in up to 90% greenhouse gas (GHG) emissions reduction over its lifecycle compared to fossil diesel.

The fuel is a drop-in solution and is suitable for all diesel-powered engines without the need for additional investment or modification to engines or fuel infrastructure.

The delivery of renewable diesel from Neste was made at the Singapore Cruise Terminal, with the fuel sourced from Vopak Penjuru Terminal and transported to the cruise ship via bunker barge Maple, operated by Global Energy.

KPI OceanConnect facilitated the successful delivery of the renewable diesel, working closely with the vessel's technical team to ensure engine compliance. KPI OceanConnect collaborated with Neste to source the fuel and with Global Energy for operational agreements in Singapore waters.

Ee Pin Lee, Head of Commercial APAC, Renewable Products at Neste, said: "This first supply of Neste MY Renewable Diesel to the marine sector in Asia-Pacific is a significant milestone and demonstrates the versatility of the product across a wide range of applications where it can replace fossil diesel. It is an effective solution for enabling the marine sector to be more sustainable."

Chow Munee, Group Business Manager, Global Energy, added: “Partnering with Neste and KPI OceanConnect to supply renewable diesel to the marine sector in Singapore is an important step in helping our clients reduce their environmental impact. By providing seamless and reliable delivery of HVO, we are supporting the industry’s transition without compromising operational efficiency. We’re proud to play a role in driving these crucial efforts within the maritime sector.”

Jesper Sørensen, Head of Alternative Fuels and Carbon Markets at KPI OceanConnect, said: “We are proud to be industry first movers in sourcing and delivering HVO for our clients, helping them reduce their carbon footprint and achieve their environmental goals. By working closely with Neste and Global Energy, we were able to offer high-quality biofuel to our client, laying the groundwork for further fuel uptake and decarbonisation progress. This successful delivery is a testament to how partnerships can help advance the industry’s green transition.”

Photo credit: KPI OceanConnect
Published: 9 January, 2025

Biofuel

CTI-Maritec: Why accurate testing of energy content is essential for bio bunker fuels

Owing to the composition of bio-marine fuels, accurate measurement of NSE / Net Heat of Combustion to correctly gauge energy content of bio-marine fuels is key for efficient fuel management onboard ships.

Published

5 days ago

January 9, 2025

Admin

Marine environmental services and fuel testing solutions company CTI-Maritec on Wednesday (8 January) shared on why one of the most important testing parameters or properties of bio-marine fuel is energy content.

Owing to the composition of bio-marine fuels, the accurate measurement of Net Specific Energy (NSE) / Net Heat of Combustion to correctly gauge energy content of bio-marine fuels is key for efficient fuel management onboard ships:

Introduction

Bio-marine fuel is widely adopted as a drop-in fuel to achieve the current emission requirements in the shipping industry. ISO 8217:2024 specification allows bio-marine fuels to contain up to 100% fatty acid methyl ester (FAME). The major production route of FAME is transesterification of vegetable oils, animal fats or used cooking oils with methanol using alkaline catalysts. The ISO 8217:2024 version has included additional test parameters to measure FAME content, energy content and oxidation stability for bio-marine fuels.

Accurate Net Specific Energy (NSE) assists with efficient fuel consumption management

In this newsletter article, we review why one of the most important testing parameter or property of bio-marine fuel is Energy Content. Accurate measurement of NSE for energy content of bio-marine fuels is essential for efficient fuel management onboard ships with respect to:

Fuel consumption
Voyage planning
Operating cost
Machineries or equipment performance
Emission & environmental implications

Why accurate testing of Energy Content is an essential test parameter for Bio-marine fuel

Marine fuel containing FAME typically has lower energy content compared to conventional marine fuels.

The heating value of a fuel is the total energy released as heat when a fuel undergoes complete combustion with oxygen under standard conditions. The chemical reaction is typically a hydrocarbon reacting with oxygen to form carbon dioxide, water and heat as shown in the equation below:

Hydrocarbon + Oxygen à Carbon Dioxide + Water + Heat Released

Conventionally, NSE of marine fuels (which consist of predominantly hydrocarbons from petroleum sources) is calculated using a formula specified in Annex of ISO 8217 (Annex J of ISO 8217:2024) with acceptable accuracy. For marine fuels containing FAME, the NSE cannot be calculated using the formula specified in Annex J of ISO 8217:2024 and shall be measured using ASTM D240 method. FAME molecules contain the Carbonyl group and Ester bonds as shown in Figure 1 below and do not consist purely of carbon and hydrogen atoms.

Figure 1: An Ester of a Carboxylic Acid

The density of potential energy of a hydrocarbon is determined by the number of carbon to hydrogen bonds that can be replaced by oxygen to carbon (CO2) and oxygen to hydrogen bonds (H2O), in other words, the amount of energy released is dependent on the oxidation state of the carbons in the hydrocarbon. For marine fuel containing FAME, the FAME molecule itself contains oxygen atoms in the Carbonyl group and Ester bond. The Ester group of FAME has a carbon forming 3 bonds with oxygen atoms, this means esters are more oxidised than hydrocarbons and esters release less energy content when compared to hydrocarbon since higher oxidation reactions are needed for hydrocarbons.

The paragraphs above explain the reasons marine fuel containing FAME typically have lower energy content compared to conventional marine fuels, which consist of predominantly hydrocarbons and the calculated formula for NSE is not applicable to marine fuel containing FAME.

According to ASTM D240 test method, heat of combustion is determined by burning a weighed sample in an oxygen bomb calorimeter under controlled conditions. The heat of combustion is computed from temperature observations before, during, and after combustion, with proper allowance for thermochemical and heat transfer corrections. The average of gross specific energy (GSE) or gross heat of combustion, and NSE or net heat of combustion of MGO, VLSFO, HSFO and Bio-marine Fuels are tabulated in Table 1 below:

Why accurate testing of Energy Content (Net Heat of Combustion) is essential for Bio-Marine Fuels

Note: The average GSE and NSE for each of the fuel types was obtained from at least 50 samples.

Based on Table 1, bio-marine fuel B30 has 8% lower energy content when compared to MGO. The energy content of bio-marine fuel will become lower when the FAME content is higher.

Energy content of marine fuel containing FAME shall be determined by ASTM D240 method and cannot be calculated using the current NSE formula, which is commonly used for the conventional marine fuels.

Note: The full article by CTI-Maritec can be found here.

Photo credit: Louis Reed from Unsplash
Published: 9 January, 2025

Bunker Fuel

Revitalising JCT Oil Bank will be key to unlock Sri Lanka potential in bunkering

Dr. Prabath Weerasinghe, a Senior Lecturer at University of Ruhuna, says analysts predict the country can generate about USD 5 billion annually from bunker fuel operations by 2030 if improvements are made to JCT Oil Bank.

Published

5 days ago

January 9, 2025

Admin

Dr. Prabath Weerasinghe, a Senior Lecturer of the Department of Electrical and Information Engineering Faculty of Engineering at University of Ruhuna, shared that analysts predict the country can generate about USD 5 billion annually from bunker fuel operations by 2030 with a focused investment and improvements to Jaya Container Oil Bank Terminal (JCT Oil Bank):

Sri Lanka, strategically positioned on one of the busiest maritime routes in the world, holds immense potential to become a leading regional bunkering hub. Experts suggest that with targeted infrastructure upgrades and strategic policy initiatives, the country can generate nearly USD 5 billion annually from bunker fuel operations by 2030. The key lies in revitalising the Jaya Container Oil Bank Terminal (JCT Oil Bank) to match regional standards and meet the growing global demand for efficient bunkering services.

The Jaya Container Oil Bank Terminal, once seen as a critical asset for Sri Lanka’s maritime economy, has faced years of neglect, underutilisation, and inadequate capacity expansion. Despite its strategic location adjacent to the busy Port of Colombo, the terminal operates well below its potential. Competitors like Singapore, Fujairah, and Indian ports have surged ahead, offering large-scale fuel storage facilities, efficient refuelling systems, and world-class operational infrastructure.

The lack of consistent investment, outdated technology, and limited storage capacity at JCT Oil Bank has deterred major shipping lines and bunker operators from considering Sri Lanka as their preferred choice for refuelling.

The USD 5 Billion Vision

With global shipping volumes projected to grow steadily, the demand for bunker fuel is expected to rise exponentially. Analysts predict that with focused investment in the JCT Oil Bank Terminal, Sri Lanka could capture a significant share of the Indian Ocean bunkering market, generating approximately USD 5 billion annually by 2030.

Key improvements required to achieve this goal include:

Increased Storage Capacity: Expanding storage facilities to accommodate both conventional and sustainable fuels like LNG and biofuels.
Enhanced Distribution Networks: Modernising fuel delivery systems to reduce refuelling times and increase efficiency.
Policy and Regulatory Clarity: A transparent and investor-friendly policy framework to attract global players.
Technological Upgrades: Adoption of digital systems to streamline inventory management and improve transaction transparency.

Regional Competition: The Need for Urgency

Regional competitors like Singapore have set benchmarks in bunker fuel supply, handling nearly 50 million metric tons of bunker fuel annually. Ports in India, UAE, and Malaysia are also scaling up their bunkering capacities with substantial government backing. If Sri Lanka delays infrastructure upgrades, it risks losing market share to these emerging competitors.

Government and Private Sector Collaboration

Achieving this ambitious target requires strong collaboration between the government and private sector stakeholders. Private investment in storage infrastructure, technology integration, and distribution systems will play a crucial role. Simultaneously, the Sri Lanka Ports Authority (SLPA) must ensure that red tape is minimised, and strategic policies are implemented effectively.

The International Maritime Organisation (IMO) has set strict emission targets for the shipping industry. As a result, the demand for clean fuels like LNG, biofuels, and green ammonia is expected to rise significantly. If Sri Lanka can position the JCT Oil Bank Terminal as a hub for sustainable fuel distribution, it will secure a long-term competitive advantage in the global bunkering market.

The Roadmap to 2030

Short-term (2024-2026): Immediate expansion of storage capacity and improvement of refuelling facilities.
Medium-term (2026-2028): Adoption of advanced technologies and digital systems for seamless operations.
Long-term (2028-2030): Integration of sustainable fuel infrastructure and establishment of global partnerships.

Sri Lanka stands at a critical juncture. The Jaya Container Oil Bank Terminal is not just a piece of infrastructure—it represents a multi-billion-dollar economic opportunity. With the right mix of policy direction, strategic investment, and sustainable practices, Sri Lanka can re-establish itself as a leading bunkering hub in the Indian Ocean.

If the government prioritises the revival and expansion of the terminal, the country could unlock an annual revenue stream of USD 5 billion by 2030, boosting foreign exchange reserves, creating employment opportunities, and driving long-term economic stability. The time to act is now—delays will only allow regional competitors to widen the gap further.

Photo credit: Chathura Anuradha Subasinghe on Unsplash
Published: 9 January, 2025