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LR: Risk sharing key component to viable emissions reduction

When major change is introduced on a ship, there are numerous aspects to consider by all stakeholders involved which all add risk.

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Elina Papageorgiou

Shipping must be open to sharing the risks associated with emissions reduction to enable the uptake of energy savings devices and technologies (ESDs/ESTs) and digital applications, stated classification society Lloyd’s Register (LR) representatives during a presentation at Athens during early December.

The responsibility of investing in and driving the uptake of new solutions must be borne by all relevant stakeholders and not sit solely with the shipowner. This extends not only to financial exposure, but also new vessel design and data sharing.

When major change is introduced on a ship, there are numerous aspects to consider by all stakeholders involved which all add risk. Energy producers, the energy consumers, the associated supply chains, and the investors, insurers, regulators, class societies and governments – all have critical, but different and highly inter-related roles to play within the transition.

“We are in a new era of shipping that comes with a different set of rules, including shipping companies’ approach risk and risk sharing,” shared Elina Papageorgiou, Global Strategic Growth Director and VP Greece and Cyprus at LR at the Powering Progress: Innovation and Energy in Maritime event.

“Longer-term investment decisions should also be informed by the decisions of shipping’s clients’, clients – the cargo owners – and align with their emissions reduction ambitions.”

David Lloyd, Director, Energy Transition at LR, meanwhile noted: “Smart vessel operation and well-informed, data-led investment decisions can significantly support vessel compliance. What’s more, investments don’t have to be extensive to achieve results.”

“Whilst uncertainties around bigger challenges such as alternative fuels and future requirements are resolved, ESDs and digital solutions can support the commercial viability of vessels as we approach 2030 with often surprisingly low levels of investment. But these investments should be shared across all stakeholders and not be limited to owners and financiers.”

Fotis Belexis, Technical Director of Starbulk Carriers, were amongst speakers discussing risk sharing across stakeholders for complex capital investments.

He pointed out that as existing vessels age, they cannot be replaced by newbuilds as there is insufficient global shipbuilding capacity to replenish the fleet with newer tonnage.

As such, older vessels may therefore remain in the market for longer than expected and not depreciate in value as has been the case in the past. Banks and other lenders must realise this and adjust their depreciation and lending models to suit when ship owners want to finance retrofits of ESDs on their older ships.

Moving forward, the room agreed energy saving devices (ESDs), such as wind-assisted ship propulsion, digital solutions and smart operations should all be considered as the in-service fleet using traditional marine fuels seeks to shave its bunker fuel consumption to comply with IMO’s Carbon Intensity Indicator, EU ETS (Emissions Trading Scheme) and FuelEU regulations – the latter will which be in effect as of 1 January 2025.

As emissions reduction targets increase, with steeper increments than currently planned potentially being announced at the Marine Environment Protection Committee meeting in May next year, data-led insight and scenario planning will become more important to understand where efficiencies can be gained.

 

Photo credit: Lloyd’s Register
Published: 31 December 2024

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LNG Bunkering

ABS awards AiP to Tritec Marine and Bluesoul for LNG bunker vessel design

Design is for a ‘Safe Bunker’ 20,000 m3 vessel; ‘Safe Bunker’ differs from traditional LNG bunker vessel designs as it can better prevent against vessel contact during bunkering operations.

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ABS awards AiP to Tritec Marine and Bluesoul for LNG bunker vessel design

Tritec Marine, in partnership with Shanghai Bluesoul Environmental Technology (Bluesoul), on Monday (14 April) said it has obtained Approval in Principle (AiP) from the classification society American Bureau of Shipping (ABS) for its ‘Safe Bunker' 20,000 m3 LNG bunker vessel design.

In 2024, Tritec Marine entered a collaboration with Bluesoul to tailor its patented ‘Safe Bunker’ LNG bunker vessel design by including Bluesoul’s proprietary Bastion B aluminium alloy LNG (Type B) cargo containment system.

Following the approval, Tritec Marine and Bluesoul are now conducting discussions with parties interested in Safe Bunker technology licenses for construction.

Safe Bunker differs from traditional LNG bunker vessel designs as it contains an offset accommodation unit to better prevent against vessel contact during bunker operations. Virtual mooring systems and dynamic positioning on the vessel removes the need for fixed mooring lines. 

Bluesoul’s IMO B tank is a prismatic tank equipped with anti-sloshing bulkheads. Using aluminium alloy 5083-O, this B tank is 30% lighter than the traditional stainless steel and nickel tanks, easy to scale up, and allows for increased cargo carrying capacity at comparable drafts.

The tank is covered by oxide film, does not require coating, is easier to maintain and can be used to transport LNG, Ammonia and Liquid Hydrogen.

George Mermiris, Director and General Manager, Tritec Marine, said: “The Safe Bunker vessel offers a safer bunkering solution and a platform where commercial requirements and technological innovation can blend in a cost-effective and operationally efficient manner.

“The industry is seeing a growing demand for LNG as fuel which will inevitably drive the need for more efficient bunkering operations, especially in busy maritime hubs like Shanghai or Singapore.

“The innovative nature of our bunker vessel design in combination with Bluesoul’s proprietary tank technology provide an optimal solution for the sector.”

In 2018, Tritec Marine (a subsidiary in the Northern Marine / Stena group of companies) successfully collaborated with Bluesoul on a tanker fleet exhaust gas cleaning system retrofit project and have now reunited in the LNG bunkering space.

Yongfeng Qu, Chief Scientist and Engineer, Bluesoul, said: “Having previously successfully collaborated with Tritec Marine and the Northern Marine Group, we are delighted to work together once again in the exciting and rapidly developing LNG bunker vessel space.

“Our IMO B Tank solutions are customizable, utilise anti-sloshing bulkheads, and offer a unique system which increases safety while still allowing for fast and cost-effective installation.”

Rostom Merzouki, ABS Director, Global Gas Solutions, said: “With global demand for LNG increasing, bunker vessels like the design from Tritec Marine and Bluesoul will be critical for its safe transportation and application. ABS is proud to use our record of safety leadership and expertise as the world’s leading classification society for gas carriers to support this project.”

 

Photo credit: Tritec Marine
Published: 15 April, 2025

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Biofuel

DNV: Maximizing the potential of bio bunker fuels in shipping

DNV summarizes its white paper examining the growing uptake of biofuels in shipping, bunkering trends and provides practical guidance around their use.

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DNV: Maximizing the potential of bio bunker fuels in shipping

Classification society DNV recently published a Maritime Impact article to summarize its white paper examining the growing uptake of biofuels in shipping, bunkering trends and provides practical guidance around their use:

Biofuels are an increasingly attractive decarbonization option for shipowners. A new white paper from DNV analyses an evolving supply picture, while also providing technical guidance to shipowners planning to use it as a drop-in fuel.

Growing international pressure to decarbonize shipping has seen a significant increase in demand for biofuels in recent years. With several biofuels seen as “sustainable”, these can provide immediate decarbonization results for shipowners. However, as the new DNV white paper explains, supply is limited, and some technical and operational considerations should still be taken into account by shipowners before and during their use.

Biofuel as a decarbonization option

Although most biofuels contain carbon, which is released as CO2 during combustion, many can still lead to significant reductions in carbon emissions.

“This is because of the carbon cycle,” says Øyvind Sekkesæter, Consultant in Maritime Environmental Technology at DNV and lead author of DNV’s white paper. “When biomass grows, it absorbs CO2 from the atmosphere. This can, in theory, negate the release of CO2 when biofuel is burned.”

“However, in a life cycle perspective, there will still be emissions related to the harvesting of biomass, transportation and processing, meaning that 100% carbon neutrality is difficult to achieve in practice. This is particularly relevant now that shipping regulations, such as FuelEU Maritime, consider emissions on a ‘well-to-wake’ basis.”

Drop-in capability

Perhaps the most attractive aspect of biofuels is their ability to be used as a “drop-in” fuel on existing vessels. This means that biodiesels like FAME (fatty acid methyl ester) and HVO (hydrotreated vegetable oil) – the two most commonly used biofuels in shipping today – can be used to fuel vessels designed for operation on conventional fuel oils, while liquefied biogas, or bio-LNG, can be used directly on board LNG-capable vessels. They can be either stand-alone fuel products or blends with conventional fuels.

“This drop-in capability is very important, because it means that many biofuels can be applied directly to the existing fleet, where other decarbonization options might be difficult,” says Sekkesæter. “This is understandably an appealing choice for shipowners as it enables them to significantly reduce emissions without, for example, large-scale investment in engine retrofitting.”

Supply of biofuels

According to the white paper, the total global production of liquid biofuels (primarily ethanol, FAME and HVO) and biogases reached about 111 and 41 million tonnes of oil equivalent (Mtoe) respectively in 2023. The paper also estimates that about 15% of liquid and 65% of gaseous biofuels were based on advanced feedstocks as defined according to the EU Renewable Energy Directive.

t1 ind 582 end use sectors for liquid biofuels and gaseous biofuels

Shipping’s share of global supply is extremely low. In 2023, this was around 0.7 Mtoe, accounting for about 0.6% of the global supply of liquid biofuels. This was similar to aviation, which accounted for around 0.5% of global supply in 2023. Road transport remains the prevalent user of biofuels, taking 98.9% of global liquid biofuel supply in 2023.

In 2023, biofuels accounted for just 0.3% of marine energy use.

Bunkering of biofuels mapped out

For biofuels to play a major role in maritime decarbonization, supply and availability in major bunkering hubs will need to increase. Through a systematic review of public information, the DNV white paper has identified more than 60 ports where biofuel bunkering has taken place since 2015. While bunkering availability is quite geographically diverse, it is mainly concentrated in Europe and East Asia. Availability in North America, South America and Africa is more limited in comparison.

“While our research shows us that the supply of biofuels is still relatively low, bunkering has taken place in quite a high number of ports,” says Sekkesæter. “Additionally, data from Singapore and Rotterdam – the two largest bunkering hubs – shows that biofuel consumption in shipping is growing quite quickly.”

Increasing biofuel sales in Singapore and Rotterdam

Total sales of bio-blended fuel in Singapore and Rotterdam increased from about 300,000 tonnes in 2021 to more than 1.6 million tonnes in 2024. The most common blend sold in Singapore has so far been B24 (meaning 24% biofuel by volume), while in Rotterdam it has been B30. In both cases, the biofuel blends primarily incorporate FAME and VLSFO (very low sulphur fuel oil).

t2 ind 582 reported bunker sales of bio blended fuel

Sales from these two ports were estimated to account for around half of all biofuel supply to shipping in 2023.

Demand for these blends is clearly on the rise, despite their additional cost to shipowners. “Both B24 and B30 have traded at a price premium of 30% to 60% relative to VLSFO since 2023,” says Sekkesæter.

Note: The full version of DNV’s Maritime Impact article on biofuels can be read here

 

Photo credit: DNV
Published: 7 April, 2025

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Alternative Fuels

DNV: Methanol dominates orders for alternative-fueled vessel in March

Methanol was the biggest activity driver, accounting for 12 of 25 new orders for alternative-fueled vessels while order for two ammonia-fuelled vessels from the tanker segment was also notable.

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DNV: Methanol dominates alternative-fueled vessel orders in March

Latest figures from classification society DNV’s Alternative Fuels Insight (AFI) platform saw a total of 25 new orders were placed for alternative-fueled vessels in March 2025.

Methanol was the biggest activity driver, accounting for 12 of these new orders. This was spread across diverse segments, with cruise vessels and car carriers accounting for three each, one offshore vessel, one bulk carrier, and the remainder crude oil/chemical tankers. 

Seven orders were placed for LNG-fueled vessels, all in the container segment. 

The remaining two orders were for ammonia-fueled vessels, both oil/chemical tankers. 

A total of 71 orders were placed for alternative-fueled vessels in the first quarter of 2025, representing a 13% decline compared to the first quarter of 2024. This comes against the backdrop of lower newbuild activity throughout the maritime industry in the early months of 2025. 

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “This was another solid month for the alternative-fueled orderbook, with plenty to be encouraged about.  

“Methanol led the way, accounting for the highest number of new orders, following relatively weak activity over the winter months. Interestingly, these orders were spread across diverse segments, with owners across the cruise, car carrier, bulk carrier, and tanker segments investing in this fuel. 

“The ordering of two ammonia-fueled vessels from the tanker segment is also notable. While ammonia still has some way to go as a marine fuel, foundations are being put in place and progress is being made. 

“Although new order activity in the alternative-fuelled market is tracking 13% behind the first quarter of 2024, this is largely attributable to a weaker overall newbuild market in 2025.”

DNV: Methanol dominates alternative-fueled vessel orders in March

DNV: Methanol dominates alternative-fueled vessel orders in March

DNV: Methanol dominates alternative-fueled vessel orders in March

 

Photo credit: DNV
Published: 2 April, 2025

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