Interview

KPI OceanConnect sees huge potential in Singapore and China green bunker fuels

Li Wen, Head of China Team at KPI OceanConnect, based in Singapore, gives her take on the future of alternative bunker fuels including methanol, LNG and biofuels especially in Singapore and China.

Published

6 months ago

November 7, 2024

Admin

Li Wen, Head of China Team at KPI OceanConnect, based in Singapore, who is an expert in the field of bunker trading, marine fuels, and low-carbon energy strategies, recently shared with Manifold Times on the future of alternative bunker fuels, their availability and uptake in Singapore and China as well as the future of methanol in these two countries.

She also addressed the critical need for collaborative efforts across the marine fuels value chain to drive up the adoption of alternative marine fuels:

MT: What alternative marine fuels should the maritime industry focus on for IMO2030 and IMO2050?

We expect the marine fuels market will have a multi-fuel future to meet the IMO’s targets, with a choice of low-carbon and carbon-neutral alternatives available for powering deep sea vessels.

The industry must evaluate available fuels for both short-term and long-term use to ensure they make the best choice that aligns with their specific needs. Short-term fuels, such as biofuel and fossil LNG, are readily available today, supported by existing infrastructure for production, transportation, and distribution, and are compatible with current vessel technology. In contrast, long-term fuels, like those derived from hydrogen produced by renewable energy-powered electrolysers, are still in early stages of technological development but offer greater decarbonisation potential for operators.

When advising our global clients, we leverage our expertise across all fuel types, ensuring that ship owners and operators can select the best fuel aligned with their operational needs and decarbonisation goals. Through our contractual partnerships with some of the largest industry players, we differentiate ourselves by driving innovation in green fuels and infrastructure development projects.

KPI OceanConnect is committed to partnering with the industry to accelerate the transition to sustainable marine fuels and developing tailored strategies that lead the way in sustainability and operational efficiency.

MT: What is the current availability and uptake of these fuels in Asia, particularly in Singapore and China, and its supply forecast?

China has the infrastructure to be a major provider of biofuel, particularly UCOME but, presently, customs regulations are a barrier to this growth. These restrictions increase the price and lower the availability of biofuels in China. Once these customs challenges are resolved, we expect China-grown biofuel blends to take off and uptake to increase, like markets in Singapore and Europe.

Looking at LNG, China has five LNG bunker vessels in operation which are supported with demand largely from container vessels. Major suppliers have invested in LNG bunker vessels, which means China is comparatively well positioned as a supplier on the global market. As the fleet of dual-fuel vessels operating on LNG expands in the coming years, we expect to see the volume of LNG supplied by China to rise exponentially.

As in most of the rest of the world, long-term alternative fuels, such as methanol and ammonia, remain very much in development, limiting their availability.

MT: What are the challenges for a trading firm, such as KPI OceanConnect, to incorporate such alternative marine fuels into its product portfolio and how does the company solve them to ensure shipowners get the correct type of fuel at specific ports when needed?

In helping the industry adopt alternative fuels, we see a huge opportunity to drive partnerships across the value chain to meet our clients’ goals. By establishing these partnerships, we can connect the supply side and demand side of the equation and encourage investment in alternative fuel infrastructure. As a market leader, this is our area of expertise and we are actively pushing to accelerate the energy transition by sharing our knowledge and insights with industry partners.

With this approach, we can support suppliers of alternative fuels in finding a market, while assuring ship owners and operators that they will be able to access alternative fuels as they adopt new technologies. This may mean we find ourselves working with multiple suppliers to ensure they can deliver for our clients. Enabling the uptake of these fuels will depend on being more engaged with the supply chain and this is something we do, with our last mile delivery experience, and will continue to do.

The energy transition is still in its early stages and demand levels in Asia in particular reflect this. While in Europe there are a lot of regulations and incentives to invest in low-carbon fuels, the equivalent is not present in Asia. In this regulatory environment, the industry may need to look to the IMO to drive decarbonisation as well as work with industry partners to future-proof operations.

It is important we act as a partner to our clients during this energy transition, and the feedback we have had from our customers tells us this role remains important.

MT: With Singapore’s recent announcement that it is ready for commercial scale operations for shore-to-ship, ship-to-ship, and SIMOPS for methanol, where do you think Singapore is heading with methanol bunkering after this?

From KPI OceanConnect’s perspective, it is encouraging to see Singapore committing to be a frontrunner in yet another new area of the marine energy industry. This development is a positive step towards building the framework and infrastructure for the use of methanol as a part of the fuel mix.

However, the readiness of Singapore to fully meet the demand for green methanol, as in many other locations, is still uncertain at this stage. The Maritime and Port Authority (MPA) is best positioned to provide more detailed insights on how they plan to address this matter and its overall strategy.

MT: An expert earlier informed Manifold Times of the increasing supply of green methanol coming from China post 2025; do you agree with the development and how green methanol avails from China can support the bunkering industry in Singapore, China and rest of the world?

Chinese projects for green methanol are getting a lot of attention; however, most of these projects have not yet reached the final investment decision. Like the rest of the world, until the projects reach FID status, there is a need for more clarity on whether they will produce any green methanol in the future. Therefore, the prospect of green methanol from China in 2025 is quite optimistic and we do not anticipate production on a large scale.

In terms of availability, when green methanol production is up and running, the volume will likely cover demand at key ports in China. As production increases, the most likely destinations for the export of Chinese green methanol will be Singapore and Hong Kong.

Photo credit: KPI OceanConnect
Published: 7 November, 2024

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Interview

S-100 data framework to revolutionise maritime navigation for bunkering operators and shipowners

‘S-100 for bunkering operators is going to be truly transformational,’ states Thomas Mellor, Head of Technical Partnerships, UK Hydrographic Office, in an interview with Manifold Times.

Published

2 weeks ago

April 8, 2025

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Maritime navigation for bunker tanker operators and shipowners is set to enter a new era with the International Hydrographic Organization’s upcoming S-100 data framework, a cutting-edge data framework poised to transform how ships navigate and operate globally, learns Manifold Times.

Replacing the decades-old S-57 standard for Electronic Navigational Charts developed in the 1990s, S-100 offers unprecedented flexibility and integration of diverse maritime data.

The UK Hydrographic Office (UKHO) explained the new framework will combine critical information like weather, under-keel clearance, tides, and surface currents into a single, standardised system.

“S-100 for bunkering operators is going to be truly transformational because it can bring together various data sets into a standardised format, aiding in pre-planning for bunkering operations,” shared Thomas Mellor, Head of Technical Partnerships, UKHO during the sidelines of Sea Asia 2025.

“The integration of multiple data sets into one system will reduce stress and the risk of accidents or oil spills, making it easier to assess the safety and feasibility of bunkering operations.”

According to Mellor, S-100's ability to dynamically adjust depth contours based on tide and water levels is a significant advantage over S-57. S-100 is not static and can be extended for future technological developments without affecting current product specifications.

The development of the S-100 data framework is still in the test and development phase, with the first S100-compatible ECDIS systems expected to be seen in the market by 2027-2028.

The International Maritime Organization (IMO) approved a new performance standard for S-100 in November 2022 which will come into force on January 1, 2026, meaning that S-100 compliant ECDIS will be legal and compliant to use from this date onwards.

On January 1, 2029, the IMO will retire the old S-57 ECDIS performance standard, moving ships to adopt S-100 compatible systems for new ECDIS systems installed (including retrofits).

“For shipowners transitioning from S-57 to S-100, crew training on the use of the new system will be key to getting the most out of the equipment,” stated Mellor.

“The UK Hydrographic Office will look to support the transition with new training materials provided to support users of S-100 electronic navigational products.”

Photo credit: UK Hydrographic Office
Published: 8 April 2025

Biofuel

OceanScore launches free-to-use digital platform to trade FuelEU biofuel compliance credits

In an interview with Manifold Times, Managing Director Albrecht Grell said the new platform supports current marketing practises used by EU-based biofuels suppliers and bunker trading firms.

Published

2 weeks ago

April 7, 2025

Admin

OceanScore launches free-to-use digital platform to trade FuelEU biofuel compliance credits

Hamburg-based technology platform OceanScore has launched a platform to facilitate the trading of biofuel surpluses and deficits under the FuelEU Maritime Regulation pooling scheme, learns bunkering publication Manifold Times.

The platform is designed to be simple and user-friendly, allowing bunker companies to find buyers for their surplus biofuels and shipping companies to find suppliers. It is free-to-use, with a low fee for signing on, and is intended to complement OceanScore's main software solutions.

Further, the new platform complements current marketing practises used by European Union (EU)-based biofuels suppliers and bunker trading firms in lieu of FuelEU Maritime, informs Albrecht Grell, Managing Director, OceanScore.

“EU-based biofuel companies are now employing two strategic options to convince a shipping company to buy biofuels,” he told Manifold Times in an interview.

“The first option is just good marketing, good product and good prices.

“The second option is a discount-based strategy targeting vessels that have defined and very reliable European trading patterns. This means that when the vessels burn biofuel, they create a lot of compliance surplus as the vessels are always in Europe.

“To these vessels, quite a few European bunkering companies are selling biofuels at a discount. In return, there is an agreement for the shipping company to include these vessels into a compliance pool managed by the bunkering firms, so that the latter can sell their customers’ compliance surplus to others.”

According to Grell, OceanScore's platform is simpler and more user-friendly compared to competitors. The platform does not require complex onboarding or KYC processes, making it accessible to a wider range of companies.

The firm does not tokenise compliance pooling, keeping the process straightforward. The platform is designed to be a meeting place for buyers and sellers, without unnecessary complications.

“How do we make money? We don't, frankly, with that platform, we don't make money because we make our business more on the general software that we sell towards managing FuelEU and EU ETS for shipping companies,” he said.

“Our main business is really our Compliance Manager that helps shipping companies run their commercial processes to manage EU ETS and FuelEU. This FuelEU Pooling Marketplace is just an add on service – but it benefits from the market leading position we have built in the EU ETS and FuelEU space with more than 1500 vessels using our platform.”

Moving forward, Grell addressed concerns about data security and privacy, especially for bunker trading firms using the platform.

He explained that the platform is an advertising platform, with only a sample of prices is visible to the public. Customers must go through OceanScore's authentication process to access the platform, and transactions are handled off-platform to maintain confidentiality and privacy.

Photo credit: OceanScore
Published: 7 April 2025

Interview

U-Ming Marine navigates uncharted waters of sustainability within dry bulk sector

CK Ong, President, U-Ming Marine shares with Manifold Times the challenges of going green in the bulk carrier segment.

Published

2 weeks ago

April 7, 2025

Admin

U-Ming Marine navigates uncharted waters of sustainability within dry bulk sector

In the complex world of maritime shipping, Taiwan's largest bulk carrier company U-Ming Marine is navigating uncharted waters of sustainability, learns bunkering publication Manifold Times.

Led by CK Ong, the company’s President is pioneering an approach to decarbonisation that challenges traditional industry norms, particularly in the dry bulk shipping sector.

“Unlike container shipping with its predictable routes, dry bulk carriers operate more like maritime taxi services, making green technology investments significantly more challenging,” explained Mr Ong in an interview on the sidelines of Sea Asia 2025.

Yet, U-Ming Marine has committed to four liquified natural gas (LNG)-powered vessels, accepting a 20-30% increase in capital and operating costs.

“Our company's strategy hinges on collaborative partnerships,” Mr Ong told Manifold Times.

By working closely with mining companies, U-Ming shares the financial burden of sustainable shipping. This innovative approach has allowed it to develop the four LNG dual-fuel ships within its 70-vessel fleet, all built with a commitment towards enhancing fuel efficiency.

“Someone has to take the first step,” Mr Ong explains, highlighting the urgent need for action against climate change.

The company recognises that environmental challenges cannot be solved by a single entity. Instead, success requires cooperation amongst stakeholders - from cargo owners and ship operators to technology providers.

Currently, the maritime market doesn't necessarily reward lower emissions as most customers don't prioritise a ship's environmental impact when selecting carriers.

However, U-Ming Marine sees beyond immediate economic considerations. The company’s approach is driven by a deeper understanding of environmental responsibility, said Mr Ong.

While the current LNG infrastructure isn't perfect, U-Ming sees it as the most mature and eco-friendly alternative when compared to traditional bunker fuels.

The company will continue to explore future technologies such as ammonia and methanol, always with an eye toward reducing maritime carbon emissions.

Photo credit: Manifold Times
Published: 7 April 2025