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Maersk: Shanghai poised to become world’s leading global green shipping centre

Robert Maersk Uggla shares firm’s recommendations for Shanghai to be a top green shipping centre including working closely with industry players to plan green fuel bunkering facilities.





A.P. Moller-Maersk (Maersk) on Tuesday (17 October) shared its recommendations for green transformation and decarbonisation of the shipping industry in Shanghai, according to the Methanol Institute CEO Gregory Dolan on 18 October. 

Dolan said the 35th Shanghai Mayors International Advisory Conference (IBLAC) was successfully held yesterday. After three years of online meetings, the members of the City Advisory Committee reunited in Shanghai to feel the changes in the city while providing suggestions for the development of Shanghai.

​Under the theme of "Change and New Opportunities: Accelerating the Construction of a More Dynamic and Resilient International Metropolis”, Robert Maersk Uggla, Chairman of the Board of A.P. Moller-Maersk, was invited to participate in the meeting and share Maersk's recommendations on green transformation and decarbonisation of the industry.

“Many port cities worldwide have ambitions and plans to transform into green shipping centres, and Shanghai is uniquely positioned to be a first mover and a leading global green shipping centre. Shanghai is home to the world's largest container port, and with green fuel supplies and infrastructure in place, many of the green-fuel ships ordered today will naturally be deployed in Shanghai,” Uggla said. 

In this regard, Maersk made the following recommendations:

First, working closely with industry players to plan green fuel bunkering facilities in parallel with other leading global ports such as Rotterdam and Singapore, including the required storage facilities and bunkering #vessels for efficient simultaneous operation of ships (SIMOPS).

Secondly, it is consistent with international custom and usage regarding safety criteria and operating procedures (SOPs).

Third, assess tax regulations to ensure the supply of green methanol produced or imported in China is competitive.

Finally, consider developing a shipping decarbonisation plan similar to the EU ETS and creating incentives for using green fuels to drive investment in green methanol production in China.

Uggla stressed that the production of green fuels and green chemicals will be one of the largest industrial development opportunities in China's history. 

“To produce 100 million tonnes of green methanol requires an investment of up to USD 500 billion, which will benefit producers, renewable energy source and hydrogen energy developers, and other players in the value chain,” he said.

“In September this year, Maersk's world's first green methanol vessel was named and put into operation. In addition, the Company's first batch of ultra-large green methanol-fuelled vessels will be delivered in early 2024, and nearly 200 green methanol-fuelled vessels have been ordered and retrofitted globally.”

“We hope the green methanol made in China will be ready by then and that the green methanol refuelling infrastructure in Shanghai Port will be complete. To our knowledge, Shanghai has made significant progress in these areas and we are confident that Shanghai will be ready for a new generation of green ship services and become the world's leading green shipping centre.”

Manifold Times previously reported Maersk signing a Memorandum of Understanding (MOU) with Shanghai International Port Group (SIPG) on strategic cooperation for Shanghai Port methanol marine fuel project.

The two parties will join hands to explore green methanol fuel vessel-to-vessel bunkering operation after Maersk’s green methanol container vessels are delivered in 2024.

Related: Maersk and Shanghai International Port ink deal on green methanol bunkering

Photo credit: The Methanol Institute
Published: 18 October, 2023

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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.





Capt Satinder

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.”

Related: DNV: Methanol-fuelled order trend continues, with first ammonia DF newbuilding contracts recorded in Oct
Related: Maersk invests USD 700.3 million for additional four methanol-fuelled container newbuilds

Other related: Singapore: Equatorial Marine Fuel builds four “new generation” methanol-ready bunker tankers
Other related: MPA: Due diligence carried out prior to recent Singapore methanol bunkering pilot
Other related: VPS completes quantity survey on Singapore’s first methanol bunkering op
Other related: The Methanol Institute: Singapore takes first-mover advantage in Asia with methanol bunkering pilot
Other related: Singapore bunkering sector enters milestone with first methanol marine refuelling op
Other related: Singapore gets ready for its first methanol bunkering this week after one year preparation
Other related: The Methanol Institute: Singapore takes first-mover advantage in Asia with methanol bunkering pilot

Photo credit: Informa
Published: 6 November 2023

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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.





Luis Desiro on Unsplash

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

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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.





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

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