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Korea: HMM, GS Caltex begin pilot operation of boxship running bio bunker fuel

HMM’s 6,400 TEU boxship was refuelled with GS Caltex’s B30 biofuel and will depart from Busan to Singapore; vessel will operate along the India and South America route.

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South Korean oil refiner GS Caltex on Friday (15 September) said it launched a pilot operation of a container ship that runs on its bio bunker fuel in collaboration with Korea-based integrated logistics company HMM in Busan.

HMM’s 6,400 TEU containership HMM TACOMA was refuelled with GS Caltex's B30 bio marine fuel and will depart from Busan to Singapore. It will operate along the India and South America route, GS Caltex said in a statement.

The B30 biofuel was manufactured based on heavy fuel oil and biodiesel made from waste cooking oil, GS Caltex said.

GS Caltex's B30 bio marine fuel supplied for this pilot operation, is manufactured from GS Caltex marine heavy oil and marine biodiesel produced from waste cooking oil by DS Danseok, a domestic biofuel company.

Seung-Hoon Lee, Vice President of GS Caltex, said, “We are the first domestic oil refinery to produce biofuel and have started our first pilot operation. We plan to expand the supply of biofuel not only to domestic shipping companies but also to global shipping companies that refuel in Korean territorial waters to reduce carbon emissions in the shipping sector.”

HMM said, “We will continue to make efforts to reduce greenhouse gases through Korea’s first pilot operation of biofuel and we plan to become a global top-tier shipping company by strengthening eco-friendly competitiveness.”

In April, Manifold Times reported HMM signed a Memorandum of Understanding (MoU) with oil refiner GS Caltex to secure marine biofuels. 

The marine biofuels comprise 30% biodiesel derived from used cooking oil and 70% high-sulphur fuel oil (HSFO). 

In 2021, HMM performed the first test voyage using biofuels on its 13,100TEU containership. The vessel HMM Dream, deployed in EC1 (East Coast 1) service connecting Asia and the US East Coast, successfully completed the voyage in the Pacific Ocean.

Related: Korea: HMM signs MoU with GS Caltex to secure biofuel bunkers
Related: Hyundai Merchant Marine “HMM Dream” undergoes successful biofuel trial on genset

Photo credit: GS Caltex
Published: 18 September, 2023

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Biofuel

PIL vessel in bio bunker fuel trial transports containers with PSA Singapore

Containers, bound for Mitsui Chemicals Asia Pacific’s beneficial cargo owner, were transported via PIL’s vessel “Kota Ratna” and PSA’s coastal terminal and rail nodes in Singapore, Qinzhou and Chongqing.

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PIL transports containers using bio bunker fuel in trial with PSA Singapore

PSA Singapore (PSA) and Pacific International Lines (PIL) on Wednesday (29 May) announced the completion of their first trial of low-carbon green shipments, in a joint effort to build a more sustainable end-to-end supply chain ecosystem.

This pilot trial is part of the Memorandum of Understanding signed in October last year between the two long-standing partners to collaborate on green and sustainability solutions to decarbonise supply chains. 

The pilot consists of warehouse-to-warehouse cargo flow from Singapore to Chongqing via the International Land-Sea Trade Corridor. The containers, bound for Mitsui Chemicals Asia Pacific, Ltd’s beneficial cargo owner, were transported via PIL’s vessel Kota Ratna and PSA’s coastal terminal and rail nodes in Singapore, Qinzhou and Chongqing.

Green levers utilised in this pilot include the use of biofuel on Kota Ratna as well as landside supply chain optimisation by PSA.

The biofuel used for this trial, a blend of 24% used cooking oil with very low sulphur fuel oil, abated about 100 tonnes of carbon, equivalent to planting 4000 trees, and reduced the emissions of greenhouse gases (GHG) by 84.1%.

With first-hand data on carbon emissions obtained from this pilot trial, PIL will be better equipped to assess how it can further lower emissions from its vessel operations, not just for its existing ships but also for its eight new LNG dual-fuel container vessels that will be progressively delivered from end 2024.

The PSA Port Ecosystem Business Division leveraged container barging, a greener mode of transportation as compared to trucking, to haul cargo from PSA Jurong Island Terminal to Pasir Panjang Terminal for onward shipment towards Chongqing. 

In addition, the use of container handling equipment powered by electricity and greener alternative fuels at PSA’s ports reduced emissions in the port area.

The collaborative efforts by both partners across the end-to-end supply chain translated to planting one tree for every laden container moved across this value chain.

Philbert Chua, Managing Director, Container Division, PSA Corporation Ltd, said, “The successful completion of this green pilot project with PIL is an important step forward for the maritime and supply chain sector.”

“Combating climate change is one of our urgent priorities and PSA is committed to work with like-minded partners to put these words into action.”

“This concerted teamwork illustrates a step-by-step measurable approach to further decarbonise supply chains and has unlocked opportunities for accelerated action to achieve our net zero goal.”

Abhishek Chawla, Chief Marine Officer, PIL, said, “PIL is pleased to receive promising results from this low-carbon green shipments pilot trial with PSA.”

“With sustainability at the core of PIL’s operations, we are happy to join forces with PSA as we take concrete action to drive a sustainable future. The valuable insights obtained from this trial will empower PIL to further reduce our vessel emissions in the future, as part of our goal of achieving net zero by 2050.”

“Working hand in hand with like-minded partners, we can augment each other’s sustainability efforts in creating greener shipping and providing a sustainable net zero model to our customers soon.”

 

Photo credit: PSA Singapore
Published: 30 May 2024

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Alternative Fuels

China: Chimbusco, Suzhou Fengbei Biotechnology to conduct bio bunker fuel research

Both parties will comprehensively promote the use of biodiesel in the bunker fuel market and contribute to green and low-carbon shipping.

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China: Chimbusco, Suzhou Fengbei Biotechnology to conduct bio bunker fuel research

China Marine Bunker (Petro China) Co., Ltd. (Chimbusco) and Suzhou Fengbei Biotechnology Co., Ltd. on Thursday (23 May) signed a strategic cooperation agreement to jointly carry out research on the application of marine biofuels and promote pilot projects on the application of biodiesel. 

Both parties will comprehensively promote the use of biodiesel in the bunker fuel market and contribute to green and low-carbon shipping.

Suzhou Fengbei Biotechnology Co., Ltd. has long been committed to the research and development of comprehensive utilisation of natural oil resources, forming an oil resource recycling industry chain of "industrial oils-biofuels (biodiesel)-biobased materials". 

Qin Ling, secretary of the Party Committee and general manager of Chimbusco said with the implementation of increasingly stringent emissions laws and regulations, the company is actively responding to and adapting to domestic development needs. 

“Through strategic cooperation, the company is locking in the future demand for biofuels,” he said. 

Pingyuan, chairman of Suzhou Fengbei Biotechnology Co., Ltd. said that both firms will rely on their respective advantages and resources and seize new opportunities for carbon reduction in shipping. 

Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.

 

Photo credit: Zhangjiagang Bonded Zone (Jingang sub-district) Party and Government Office
Published: 30 May 2024

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Bunker Fuel

ENGINE on Fuel Switch Snapshot: LNG costlier than VLSFO

Singapore’s VLSFO price is cheaper than LNG; LNG approaches parity with VLSFO in Rotterdam; price gap between biofuel and LNG shrinks.

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ENGINE on Fuel Switch Snapshot: LNG costlier than VLSFO

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

27 May 2024

  • Singapore’s VLSFO price is cheaper than LNG
  • LNG approaches parity with VLSFO in Rotterdam
  • Price gap between biofuel and LNG shrinks

LNG bunker benchmarks in Rotterdam and Singapore continue to rise sharply.

With estimated EU Allowance (EUA) costs included in bunker fuel costs, Singapore's LNG bunker price has surged $34-37/mt in the past week after a $29-30/mt jump the week prior.

After adjusting the price for calorific contents to become VLSFO-equivalent, Singapore's LNG price has flipped to a premium of $29-36/mt over its VLSFO in the past week, from a $30-36 discount noted a week prior.

Rotterdam's fossil LNG bunker price has closed even further on VLSFO by $33-34/mt over the past week, making it only $20-33/mt cheaper than VLSFO now.

Biofuel price premium in Singapore over fossil LNG has dropped by another $61-62/mt to $75-81/mt in the past week. In Rotterdam, the bio-bunker premium over LNG has narrowed by $11/mt to $156-168/mt.

VLSFO

Rotterdam's VLSFO price has mostly followed Brent's downward movement over the past week. Rotterdam’s VLSFO benchmark has declined by $11-18/mt in the past week, depending on whether the estimated EUA costs are included.

Availability of VLSFO is normal in Rotterdam, with lead times of 3-5 days recommended to ensure full coverage from suppliers, a trader said.

Singapore’s VLSFO benchmark has also tracked Brent’s movement, falling $32/mt over the past week.

Lead times for VLSFO in Singapore have exhibited significant fluctuations recently. Most suppliers now recommend lead times of up to 10 days for this grade, while some can accommodate stems within five days.

Biofuels

Rotterdam’s B24-VLSFO HBE bunker price has inched $5/mt higher in the past week. When we add estimated EUA costs, the price has gained $8-10/mt, depending on whether we are looking at voyages between EU ports or between EU ports and non-EU ports.

A huge gain in the price of palm oil mill effluent methyl ester (POMEME) feedstock – qualified for Dutch HBE rebates – has pushed the price higher. PRIMA-assessed POMEME price in the ARA has jumped by $70/mt to $1,368/mt in the past week.

In contrast, Singapore’s B24-VLSFO UCOME bunker price has slumped by $25-28/mt, depending on whether the price is adjusted with estimated EUA costs.

The price has declined amid a $10/mt drop in UCOME FOB China, according to PRIMA Markets. Chinese biodiesel exports to the EU are being investigated by the European Commission for "unfairly traded biodiesel". The ongoing investigation has dented Chinese biodiesel inflows into European countries.

LNG  

Rotterdam and Singapore’s LNG bunker prices have seen significant upticks in the past week.

Rotterdam’s LNG bunker benchmark has climbed $16-22/mt higher, depending on whether estimated EU ETS costs are included in the cost of fuel. This increase has been driven by the underlying front-month NYMEX Dutch TTF Natural Gas benchmark, which has seen an uptick due to heavy maintenance activities at Norwegian gas facilities.

Singapore’s LNG bunker benchmark has risen by a staggering $34-37/mt in the past week. The movement is influenced by the upward trend in the underlying Japan/Korea Marker (JKM) gas benchmark and prevailing trends in the Asian LNG market.

Analysts at ANZ Bank noted that “the rally in global gas prices continued amid ongoing buying from importers.” Importers such as Japan and South Korea are restocking gas inventories ahead of the Northern Hemisphere summer, further driving demand.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 28 May 2024

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