Alternative Fuels
LR: Hydrogen-based fuels and biofuels compete for prominence in future bunker fuel mix
E-ammonia could emerge as the most highly adopted maritime fuel amongst hydrogen-based fuels whilst liquefied bio-methane dominates amongst biofuels, according to recent LR report.
Published
1 year agoon
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AdminA report by Lloyd’s Register (LR) Maritime Decarbonisation Hub presented a review of a wide range of fuel mix projections and has identified two alternative paths that will steer shipping’s course – hydrogen-based fuels scenarios and biofuels scenarios, according to LR on Friday (8 September).
The report, titled The Future of Maritime Fuels, analyses the dynamics of the energy supply system within these scenarios, accounting for the expected supply as well as demands from other sectors for these fuels.
In the hydrogen-based fuels scenarios, e-ammonia is projected to emerge as the most highly adopted maritime fuel in the long-term, with an average share of 35% of the shipping fuels market by 2050. Such adoption yields significant energy demands, which will potentially drive the shipping industry to be the largest user of ammonia worldwide.
It is projected that blue and e-ammonia will capture between 20% to 60% of total shipping fuels by 2050, with total consumption by shipping increasing on average from 0.79 exajoules (EJ) in 2030 to 6.06 EJ in 2050.
In the biofuels scenarios, liquefied bio-methane is projected to capture on average 34% of total shipping fuels by 2050, with total consumption by shipping increasing from 0.5 EJ in 2030 to 4.58 EJ in 2050. However, the expected supply of bio-methane needed for shipping is projected to vary between 0.3 EJ to 2 EJ during the time period under review, which will fall short of demand. This demonstrates that production will be insufficient to supply the total shipping demand for bio-methane.
The report also found that methanol is projected to have a lower market share of the shipping fuels market than ammonia and bio-methane, which runs counter to current trend of ordering dual-fuel methanol vessels in today’s shipping market. Combined bio- and e-methanol fuels are projected to capture on average a market share of 13.4% of total shipping fuels by 2050.
These fuel mix projections underscore the industry's pivotal role in driving alternative fuel adoption while grappling with unique challenges in balancing demand, supply, and investment in alternative fuel pathways.
Carlo Raucci, Decarbonisation Consultant, LR Maritime Decarbonisation Hub, said: “Our scrutiny of fuel mix projections shows that investors and shipowners will face the dilemma of choosing from different alternative fuel pathways. It is uncertain if one category of fuel will dominate the maritime fuel mix in the short and long-term, and investors face risks, such as stranded assets, which have limited the investment readiness level of low to zero-carbon fuels.”
“Therefore, first movers’ initiatives such as green shipping corridors, will be pivotal in reducing the uncertainty by scoping out multi-sector fuel supply projections that could potentially help to aggregate demand and lower risks.”
Charles Haskell, Director, LR Maritime Decarbonisation Hub, said: “For meaningful progress, stakeholders across the maritime supply chain need to take on leadership in shaping alternative multi-fuel strategies and catalyse investment cases through strategic partnerships and collaborations. The uncertain dominance of a single fuel category underscores the importance of exploring the potential future interaction of the shipping industry with the broader energy demand system.”
Following the analysis of different fuel mix projections, the report identified avenues for further exploration, such as deeper examination of fuel supply dynamics and their integration with existing fleet models, as well as cross-sector collaboration to enrich the industry’s understanding of shipping’s multifaceted fuel transition as it navigates towards greener horizons.
Note: The full report by LR Maritime Decarbonisation Hub titled ‘The Future of Maritime Fuels’ can be viewed here.
Photo credit: Lloyd’s Register
Published: 12 September, 2023
Bunker Fuel
China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October
Global marine bunker development will be among main topics of discussion at the 7th International Petroleum and Natural Gas Enterprises Conference (IPEC).
Published
2 days agoon
October 11, 2024By
AdminThe 7th International Petroleum and Natural Gas Enterprises Conference (IPEC) is taking place at Zhoushan, Zhejiang province, China between 16 to 17 October.
The agenda, provided by the Zhoushan High-tech Zone Administrative Committee to foreign event media partner Singapore bunkering publication Manifold Times, is as follows:
16 October
- Registration and sign-in for participating guests
- Meetings between Zhejiang Provincial and Zhoushan Municipal leaders with VIPs
17 October
Morning
Plenary Session of the Conference (Oriental Hall, Zhoushan International Conference Center)
- Leader’s speech, guest keynote speech, signing of major projects
Discussion Topics [*17 October, 2pm to 5pm]
Focus Topic Meeting: Global marine bunker development*
Location: Haitian Hall, Haizhongzhou International Hotel, Zhoushan
14:00-14:05 - Opening of the Meeting
14:05-14:15 - Speech by Leaders
14:15-14:30 - Announcement of "Top Ten Global Bunkering Ports" and "Top Ten Global Bunkering Companies"
14:30-14:40 - Announcement of Construction Work of Northeast Asia Bonded Marine Fuel Bunkering Hub
14:40-14:50 – Launch ceremony of Zhoushan "White-list" Bunker Barge Mass Flow Meter System Pilot Certification Programme
14:50-15:10 - Signing Ceremony
15:10-16:10 - Keynote speech
16:10-16:35 - Coffee break
16:35-17:05 - Roundtable forum (Topic: Facing green and low-carbon transformation in global shipping, how do marine fuels change in response to the trend?)
17:05-17:35 - Roundtable forum (Topic: The road to develop high-quality offshore fuel bunkering metering under the new developments)
17:35-17:40 - Moderator’s summary
Utilising financial innovation, futures and spot cooperation to promote the construction of a hub for the allocation of bulk commodity resources*
Location: Putuo Hall, Zhoushan International Conference Center
Open development of global shipping trade*
Location: Donghai Hall, Hilton Zhoushan
International iron ore trade development*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan
Development of China's new chemical materials industry during the “15th Five-Year Plan”*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan
Development of non-ferrous metal mining industry*
Location: Lianhua Ocean Hall, Hilton Zhoushan
16 and 17 October
International maritime law of the free trade port (zone)
Location: Fortune Hall, Zhoushan CaiFu Hotel
Photo credit: Zhoushan High-tech Zone Administrative Committee
Published: 11 October, 2024
Alternative Fuels
SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore
‘It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,’ says Vitol’s Head of Asia Mike Muller during a panel discussion.
Published
2 days agoon
October 11, 2024By
AdminEnergy trader Vitol’s Head of Asia Mike Muller on Wednesday (9 October) said the company is anticipating being granted a LNG bunker licence in Singapore soon.
“It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,” he said.
Mike Muller made the announcement during the Viewing the Energy Transition Through the Lens panel discussion at the 23rd Singapore International Bunkering Conference (SIBCON).
“We expect to see growth in LNG use as a bunker fuel for at least another decade, and probably longer,” he added.
On the increasing uptake of biofuels, he said Vitol is seeing demand for biofuel blended bunkers in Singapore roughly doubling every year at the moment, heading for around 1 million mt this year and maybe 2 million mt next year.
“Demand for 100% biofuel from shipping customers is also starting to pick up as of this year and we have led the way in commissioning new IMO type 2 barges to fulfil this demand - indeed an important Asian customer of ours has taken three deliveries of B100 UCOME biofuel just in recent weeks here in Singapore,” Muller explained.
Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).
The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.
The time charter agreement with Avenir is for one newbuild 20,000m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total
Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.
Related: Vitol secures LNG bunker vessel trio with time charter deal and newbuilding order
Photo credit: Vitol
Published: 11 October, 2024
Methanol
Methanol Institute: Expanding global capacity and strategic developments (Week 40, 30 Sep to 6 Oct 2024)
This week was dominated by the outcome of the IMO MEPC which considered proposals for mid-term policy measures capable of driving an energy transition in international shipping down to just three options.
Published
2 days agoon
October 11, 2024By
AdminThe 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
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