The 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

Enterprise Singapore (EnterpriseSG), through the Singapore Standards Council (SSC), will launch a new Singapore Standard (SS) 709 Specification for Digital Bunkering Supply Chain Documentation, according to Maritime and Port Authority of Singapore (MPA) on Wednesday (9 October). 

MPA said the new standard will ensure data consistency and interoperability between digital systems and facilitate smoother transactions through trusted and verifiable digital bunkering documents. 

This comes following Amy Khor, Senior Minister of State for the Ministry of Sustainability and the Environment and the Ministry of Transport, announcing that from 1 April 2025, all bunker suppliers will be required to provide digital bunkering services and issue electronic bunker delivery notes (e-BDNs) as a default.

The move was decided following successful pilots conducted since 1 November 2023 with bunker suppliers, including the top 10 bunker players, in Singapore.

To further enhance transparency and transaction integrity in bunkering operations, MPA will also introduce a centralised e-BDN record verification facility. This enables key stakeholders to verify the e-BDN received against the information transmitted to MPA.

EnterpriseSG has also launched the revised Singapore Standard (SS) 648 Code of Practice for Bunker Mass Flow Metering to include data integrity and transmission requirements in line with this new digital standard.

In the first eight months of 2024, MPA said Singapore saw strong growth of approximately 7% in total bunker sales over the same period last year, reaching over 36 million tonnes. Biofuels and liquefied natural gas bunker sales surpassed 700,00 metric tonnes. 

To support the operationalisation of a higher mix of low-carbon alternative fuels, both EnterpriseSG and MPA are developing the Singapore standards for methanol bunkering and ammonia bunkering by 2024 and 2025 respectively. 

The standards will cover custody transfer requirements, safety procedures and crew competencies, to ensure safe bunkering operations and handling of these fuels.

MPA also announced that three major shipping lines — Hafnia, K-Line, and MOL — are in early discussions to join the Singapore - Port of Los Angeles (LA)- Port of Long Beach (LB) Green and Digital Shipping Corridor (GDSC) initiative.

Each partner would be expected to spearhead a project to advance the corridor’s decarbonisation and digitalisation goals, such as the adoption of net-zero fuels, Just-in-Time route optimisation, and energy efficiency technologies such as wind-assisted ship propulsion. 

The addition of the new partners will significantly strengthen the GDSC’s capacity to drive innovation in sustainable shipping practices and accelerate the adoption of zero/near-zero emission fuels and green technologies along the corridor.

Related: SIBCON 2024: Singapore bunker suppliers must provide e-BDN from 1 April 2025
Related: Singapore: TradeGo becomes fifth whitelisted e-BDN solution provider
Related: Singapore: MoUs on digital bunkering and eBDN signed at TechWaves conference
Related: DNV FuelBoss coverage expands to include conventional bunker fuels, whitelisting by MPA in process
Related: Singapore: MPA adds ADP Clear as whitelisted solution provider for e-BDN
Related: Singapore set to become first port in the world to debut electronic bunker delivery notes
Related: MPA Chief Executive: Port of Singapore begins digital bunkering initiative today
Related: Singapore: MPA publishes guidelines for bunker suppliers in preparation of e-BDN launch
Related: ZeroNorth enables Golden Island to become Singapore’s first 100% digital bunker supplier
Related: Photo essay: e-BDN trial of “One Truth” at Singapore port
Related: Hong Lam Marine ‘fully supportive’ of e-BDN implementation for Singapore bunkering sector
Related: ONE completes e-BDN adoption trial with Shell in Port of Singapore
Related: Singapore: Golden Island switching to 100% e-BDN operations from 1 December
Related: IBIA: International Maritime Organization confirms acceptance for electronic BDNs (update)
Related: IBIA: MEPC 80 confirms acceptance for electronic bunker delivery notes
Related: IBIA: IMO sub-committee accepts use of electronic BDNs after long discussion

 

Photo credit: Maritime and Port Authority of Singapore
Published: 10 October, 2024

SGMF on Wednesday (9 October) announced the release of the Bunkering Guidelines for Ammonia and Bunkering Guidelines for Methanol, as well as the Emergency Response Guide for Ammonia.

During the 23rd Singapore International Bunkering Conference (SIBCON), SGMF also revealed its new brand reflecting the organisation’s current activities in the four key marine fuels for the future: LNG, methanol, ammonia and hydrogen.

SGMF is a membership-based organisation leading safe maritime decarbonisation with members across the full value chain of marine fuels, including suppliers, operators, owners, equipment manufacturers, class societies, port authorities, individuals and training organisations.

While the search for the perfect alternative fuel continues, SGMF said methanol and ammonia are two of the fuels that the global merchant fleet has identified and is looking to implement, emphasising the importance of these guidelines. 

Methanol – With the first vessels already running on methanol, and many more on order, methanol is ahead of the curve in terms of adoption. It has also overtaken regulation, meaning that these early adopters are having to put forward safety solutions that have not yet been documented, and bunker suppliers using existing chemical carriers are trying to second guess what conversion and equipment may be needed to make their vessels physically compatible with the ships being produced. These methanol bunkering guidelines have been published as a first draft to highlight the key safety factors that need to be considered when designing and bunkering a vessel of any type with methanol. 

Ammonia – Despite ammonia (NH3) not yet being commercially available as a marine fuel, this bunkering document provides guidance to all the stakeholders currently investigating and developing the bunkering of ships with fully refrigerated (-33°C) ammonia.

A range of potential hazards are expected with bunkering ammonia and to date there is very limited experience, with only one series of bunkering trials conducted as at March 2024. 

As a result, Bunkering Guidelines for Ammonia draws primarily on the current experience of LNG bunkering, the wider ammonia marine transport industry and the shoreside ammonia production and transport industry experience. 

“The overall aim of these guidelines is therefore to ensure that ammonia-fuelled ships are bunkered safely, reliably, efficiently and in an environmentally responsible way, targeting the avoidance of operational or fugitive emissions of ammonia,” SGMF added. 

These publications have been compiled with extensive input from the SGMF membership, as well as with collaborative support from the Global Centre for Maritime Decarbonisation (GCMD) and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS).

Note: The bunkering guidelines are available in the shop on SGMF portal and the Emergency Response Guide for Ammonia can be downloaded through its free resources section.

 

Photo credit: SGMF
Published: 10 October, 2024