Methanol

JP Morgan confirms order for two methanol dual-fuel chemical tankers

J.P. Morgan Global Alternative’s Global Transportation Group advised on an order by institutional investors for the two newbuilds; both vessels will be fixed on time-charter to TotalEnergies.

Published

2 months ago

October 10, 2023

Admin

J.P. Morgan Global Alternative’s Global Transportation Group (JPMGTG) recently announced that institutional investors advised by JPMGTG have concluded an order for two 49,800 deadweight dual-fuel Methanol Chemical IMOII Medium-Range (MR) Newbuilds, to be constructed at Guangzhou Shipyard International (GSI), in China.

Both vessels are scheduled to be delivered in 2026 and will be fixed on time-charter to TotalEnergies.

In line with its commitment to invest in new, leading edge, technologies, with a key focus on reducing GHG emissions, the new order is JPMGTG’s first in the dual fuel methanol space. JPMGTG already has experience in investing in LNG dual fuel vessels and this step into a new fuel type will enable it to set up an additional vector of green transportation.

Growing momentum in methanol-fueled vessels across other sectors such as containerships and dry bulk vessels continues to demonstrate the growing industry view that green methanol is set to become a game changer in the pursuit of net zero targets.

The use of green methanol onboard dramatically reduces pollutants, including Sox, NOx and Particulate Matter (PM), and by capturing ambient CO2 in the production process reduces CO2 emissions by nearly 100% on a net-neutral emissions basis.

Andrian Dacy, Global Head, J.P. Morgan Alternative’s Global Transportation Group, said: “We are excited to be expanding our footprint in a new fuel technology, in line with our GHG reduction investment orientation. We are also pleased to have expanded our partnership with Total Energies, with whom we have developed a range of initiatives across a number of transportation segments. We look forward to working together in supporting TotalEnergie’s global commitment to a clean energy future.”

Jerome Cousin, Senior Vice President Shipping at TotalEnergies, said: “In the midst of the rapid expansion of Methanol as a marine fuel, TotalEnergies is taking a significant step forward by introducing MR tankers propelled by dual fuel methanol technology into our time-chartered fleet. This initiative aligns with the Company’s commitment to reducing the carbon footprint of our shipping activity. With LNG as marine fuel already implemented on our larger size tankers, integrating Methanol in its lower GHG content form, will play a key role in steering the carbon emissions reduction across our fleet.

“We are delighted to extend our enduring partnership with JP Morgan GTG, a like-minded ally dedicated to advancing low-carbon shipping solutions.”

Photo credit: CHUTTERSNAP on Unsplash
Published: 10 October, 2023

Up Next

Singapore Maritime Institute expands study on ammonia bunkering

Don't Miss

Safe Bulkers signs contracts to acquire methanol dual-fuel dry bulk duo

Methanol

Marine Fuels 360: Methanol presents easiest path towards maritime decarbonisation, says DNV

Captain Singh was confident the bunkering infrastructure in Singapore will be ready to welcome methanol-fuelled vessels due to the coordinated efforts between various agencies.

Published

9 hours ago

December 6, 2023

Admin

The use of methanol as a bunker fuel presents the least path of resistance towards maritime decarbonisation, believes the Principal Consultant, Head, Research and Development, Maritime Advisory, SE Asia, Pacific, and India at classification society DNV.

Captain Satinder Singh Virdi was speaking amongst panellists in the Methanol Panel session at Marine Fuels 360 on Tuesday (28 November) when he offered an opinion about reasons behind the increasing awareness of methanol as a marine fuel.

“The ease of adopting methanol is perhaps one of the reasons. The product exists as a liquid at ambient temperature and has been carried on vessels for the last 80 years, so it is not something new,” he stated.

“What is new is we're going to use methanol as a bunker fuel. Ease of adoption, ESG compliance, as well as getting closer to decarbonisation goals are the drivers for shipowners adopting methanol.”

According to Captain Singh, the trend for methanol-fuelled newbuildings have continued in October where DNV’s Alternative Fuels Insight (AFI) platform recorded 230 vessels on order where 156 comprises of containerships.

“The trend started when Maersk increased their newbuild order of methanol-fuelled vessels; before that it was mostly LNG as an alternate fuel,” he said.

Captain Singh was confident the bunkering infrastructure in Singapore will be ready to welcome methanol-fuelled vessels due to the coordinated efforts between the Singapore Shipping Association, Maritime and Port Authority of Singapore, Global Centre for Maritime Decarbonisation, and other organisations.

“We are all working together to support Singapore’s future maritime operations. Singapore is an international maritime centre, and we want to establish ourselves as the leading maritime city,” he explained.

“I would call this a cohesive action by all relevant partners, such as shipowners, charterers, classification societies, ship managers, bunker testing firms, mass flow meter manufacturers, bunkering companies, and more.

“It is important for Singapore to be seen as a fair supporter of bunkering in terms of reliability and reputation, and if things go wrong actions are taken very strictly to ensure transparency and quality. So, in that way I am satisfied to say that ‘yes’ we have what it takes to make methanol bunkering happen.”

Photo credit: Informa
Published: 6 November 2023

Alternative Fuels

CENIT and Hinicio to explore feasibility of zero-carbon bunkers in Colombia

Mission is to explore the feasibility of producing, storing, supplying, and exporting zero-carbon bunker fuels at strategic port locations in Colombia, says centre.

Published

9 hours ago

December 6, 2023

Admin

The Centre for Innovation in Transport (CENIT) on Tuesday (5 December) said it was teaming up with Hinicio, a strategy consulting firm focused on sustainable energy and mobility, for a project funded by The World Bank in Colombia.

CENIT said their mission was to explore the feasibility of producing, storing, supplying, and exporting zero-carbon bunker fuels at strategic port locations in Colombia.

“The shipping industry is poised to become a major demand centre for zero-carbon fuels, particularly green hydrogen-based options like green ammonia and green methanol,” CENIT said in a social media post.

“And it will play a pivotal role in transporting these zero-carbon fuels from emerging production hubs in Latin America to high-demand centres in Europe and East Asia.”

“This project takes us a step closer to decarbonising ports and fostering a sustainable future for maritime transportation.”

Photo credit: Luis Desiro on Unsplash
Published: 6 December, 2023

Methanol

Suez Canal and Scatec ink MoU for green methanol bunkering in East Port Said

Deal aims to issue a licence to Scatec to conduct green fuel bunkering operations in East Port Said and will include investments in production capacity of 100,000 tonnes of green methanol per year by 2027.

Published

1 day ago

December 5, 2023

Admin

Suez Canal and Scatec inks MoU for green methanol bunkering in East Port Said

The Suez Canal Economic Zone (SCZONE) Authority on Sunday (3 December) said it has signed a memorandum of understanding (MoU) with Norwegian renewable energy company Scatec for green methanol bunkering in East Port Said, Egypt.

The MoU was signed at the sidelines of the 2023 UN Climate Change Conference (COP28).

The project will cost USD 1.1billion and will include investments in clean energy generation, with a production capacity of up to 100,000 tonnes of green methanol per year by 2027.

It will use 190 megawatts of electrolyzer capacity, powered by 317 megawatts of wind energy and 140 megawatts of solar energy.

The deal also aims to issue a licence to Scatec to conduct green fuel bunkering operations in East Port Said.

Waleid Gamal El-Dien, chairman of SCZONE, said: “The signing of a new MoU with Scatec represents an extension of the partnership that began with the company’s first project in SCZONE, which was inaugurated by President Abdel Fattah El-Sisi on the sidelines of COP27 in November 2022, and recently succeeded in exporting the world’s first shipment of green ammonia.”

“SCZONE’s regional pioneering in the green bunkering field came as a result of SCZONE’s ports readiness to provide this service, in addition to the prompt move towards green fuel production in cooperation with major international companies.”

“This is to maximise the benefit of integrated industrial zones equipped with world-class infrastructure, in addition to the investment incentives and supportive work environment that SCZONE provides to its success partners.”

“East Port Said is the destination of the green bunkering project due to its location northern Suez Canal, and its integration with the ports of East Port Said and West Port Said, and therefore it is located near the ship’s waiting areas.”

“We emphasise that green bunkering is not a main target in itself, but an imperative global requirement, especially since shipping is responsible for 10% of the world’s carbon emissions, so the use of green fuels in maritime transport will significantly affect the reduction of carbon emissions.”

Photo credit: SCZone
Published: 5 December, 2023