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Malaysia: MISC, partners to develop ammonia-fuelled marine engines and maritime talent

MISC signed agreement with WinGD to drive development of ammonia engines for ammonia dual-fuelled vessels; deal with DNV includes R&D and developing future-ready maritime talents.




MT photos 13 February 2023 47

MISC Group on Tuesday (20 June) said through its entities AET and Akademi Laut Malaysia (ALAM), inked milestone collaboration agreements with WinGD and DNV respectively, in conjunction with the Malaysia Maritime Week 2023. 

The collaboration agreements between AET, ALAM, and WinGD aim to drive the development of ammonia engines for ammonia dual-fuelled vessels, marking a historical milestone as the first of its kind in the world for deep-sea vessels. 

“This strategic collaboration reinforces the Group’s commitment to finding sustainable and safe transition pathways to zero-emission shipping operations, for MISC Group and the maritime industry’s shipping operations. This Agreement also plays a crucial role in the development and training of mariners to safely manage vessels built with new technologies and ammonia engines,” MISC said in a statement. 


The collaboration agreement between ALAM and DNV encompasses various domains, including research and development and the enhancement of current syllabuses for training maritime professionals at all levels, geared towards meeting the workforce needs of the low and zero-carbon pathway. 

The signing of the agreement is pivotal in strengthening the education and training framework for the seafaring fraternity in charting a net-zero future for the maritime industry, according to MISC. 

MISC’s President & Group Chief Executive Officer, Captain Rajalingam Subramaniam, said: "I am very pleased with the positive outcome of our collaborative efforts, leading to the signing of two important Collaboration Agreements. These agreements mark a significant step towards a just transition and certainly brings us closer to ALAM’s goal of becoming the Maritime University of choice in Asia.”

“My sincere appreciation to WinGD and DNV for their invaluable collaboration in establishing these respective alliances. As we embark on our business transformative journey, MISC remains committed to fostering alliances with a growing list of like-minded industry partners for a purposeful just transition in managing societal emissions for generations to come.”


Dr Rudolf Holtbecker, Director Operations, WinGD, said: “The success of the energy transition in shipping will take much more than technology and fuel flexibility. The crew on board these vessels need to be equipped with the knowledge and confidence required to ensure safe and efficient operation.”

“The main engine technology will be familiar as our fuel flexible portfolio is based on our well-proven core technology. By partnering with AET & ALAM we can establish a solid foundation of knowledge and hands-on experience for crew to confidently operate these new vessels with safety and fuel efficiency built in.”

On the back of the transformation of the global maritime industry, the collaboration with DNV is pivotal as sharing of the industry’s best practices will result in either upskilling or re-skilling of the current workforce to ensure their relevancy and thrive in the new operating environment, in addition to attracting new talent with the required competencies to join the industry.

Cristina Saenz de Santa Maria, Regional Manager Southeast Asia, Pacific & India, Maritime at DNV, said: “Decarbonisation and digitalisation are steadily changing the maritime landscape as we collectively strive towards a net-zero future. This necessitates the upskilling and training of seafarers to ensure they have the skills and competence to operate new fuels and technologies introduced onboard safely and efficiently. 

“Our co-operation with ALAM will enable them to tap on DNV’s extensive global training network and access comprehensive training programmes for both onboard and onshore personnel, imparting best-in-class industry practices and knowledge to shape the next generation of maritime leaders.”

Signatories of these Collaboration Agreements are John Baptist, Head of Decarbonisation, MISC, Dr. Carmelo Cartalemi, General Manager, Global Sales, WinGD, Khairul Azhar Bunyamin, DNV Malaysia Country Chair and ALAM’s Chief Executive, Prof. Dr. Hamdan Suhaimi.

The witnesses of the signing were YB Datuk Haji Hasbi Habibollah, Deputy Minister of Transport Malaysia, Captain Haji Mohamad Halim bin Ahmed, Director General of Marine, Malaysia Marine Department, Y.Bhg. Dato’ Normah Osman, Deputy Secretary General Policy, Ministry of Transport, Captain Rajalingam Subramaniam, President & Group Chief Executive Officer, MISC, Mohamed Safwan Othman, Chairman, Malaysia Shipowners' Association (MASA) and Roger Specker, Managing Director, Singapore, WinGD.


Photo credit: MISC Group
Published: 21 June, 2023

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LNG Bunkering

Titan completes first STS LNG bunkering operation in Cuxhaven

Port of Cuxhaven in Germany had previously only seen LNG operations conducted via truck and currently only permits LNG bunkering at one berth, says Titan.





Titan completes first STS LNG bunkering operation in Cuxhaven

LNG bunker fuel supplier Titan on Thursday (11 July) said it completed the first-ever LNG bunkering operation by ship in the port of Cuxhaven.

Titan’s bunker vessel Optimus successfully delivered LNG to dredger Vox Ariane operated by its long-term client Van Oord. 

“Our ship-to-ship bunkering in Cuxhaven represents a pioneering step in the region's LNG infrastructure development, as the port had previously only seen LNG operations conducted via truck and currently only permits LNG bunkering at one berth,” it said in a social media post. 

“LNG infrastructure development is part of a broader trend, with more ports across Germany adopting LNG operations to support shipping’s clean fuels transition.”

Titan added the improved LNG bunkering capabilities in Cuxhaven, a Niedersachsen Ports GmbH & Co. KG port, also opened up the pathway to maritime decarbonisation via liquified biomethane (LBM) and then renewable e-methane going forward.


Photo credit: Titan
Published: 12 July, 2024

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LNG Bunkering

UECC “Auto Achieve” receives first LNG bunker fuel delivery by barge in home country

Firm said it received the first ever supply of LNG by barge to their multi-fuel LNG battery hybrid car carrier in the Port of Drammen, Norway.





UECC “Auto Achieve” receives first LNG bunker fuel delivery by barge in home country

Norwegian roll-on/roll-off shipping line United European Car Carriers (UECC) on Wednesday (10 July) said it received the first ever supply of LNG by barge to their multi-fuel LNG battery hybrid car carrier Auto Achieve in the Port of Drammen on 4 July.

The firm said this was the first time UECC received LNG by barge to any of their vessels in their home country Norway. 

“We also believe that it was the first time LNG was delivered by barge to any vessel in Drammen, and most likely the entire Oslofjord,” UECC said in a social media post.

The LNG was supplied by the Molgas Energy Holding vessel Pioneer Knutsen, owned by Knutsen Group OAS.

“UECC is very pleased to see the expansion of the LNG barge network in Norway,” it said. 


Photo credit: UECC
Published: 12 July, 2024

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OceanScore reveals ship segments set to feel EUR 1.3 billion sting of FuelEU penalties

Container segment will bear the brunt of FuelEU costs, accounting for 29% of gross penalties, followed by RoPax on 14% with tankers and bulkers each on 13%, says firm.





OceanScore Managing Director Albrecht Grell

Hamburg-based technology platform OceanScore on Tuesday (9 July) said the financial impact of FuelEU Maritime is focusing the minds of shipping companies as they face potential penalties for non-compliance with greenhouse gas (GHG) intensity reduction targets - and OceanScore has identified those segments set to be hit hardest.

The following is an article by OceanScore elaborating on the matter:

Vessels in the passenger/cruise, container, RoPax, bulker and tanker segments will have significant cost exposure from the complex regulation due to be implemented from 1 January next year, despite a relatively modest initial target of a 2% cut in GHG intensity, according to OceanScore.

The firm’s data analytics team has calculated that shipping will rack up total FuelEU penalties of €1.345 billion in 2025 through analysis of the 13,000 vessels over 5000gt trading within and into the EU/EEA that are subject to the regulation. This is based on data on trading patterns and fuel mix from 2022 - the last full year currently available.

Containers bear burden

The team has been able to determine FuelEU compliance balances and resulting penalties for each vessel using OceanScore’s proprietary data modelling incorporating AIS data, Thetis emissions data, bunker intelligence and advanced analytics/AI. It has factored in the likely fuel mix for each vessel between EU ports and to/from the EU, as well as in ports.

Vessels will be hit with a penalty of €2400 per tonne of VLSFO-equivalent for failing to meet the initial 2% reduction target relative to a 2020 baseline for average well-to-wake GHG intensity from fleet energy consumption of 91.16 gCO2e per megajoule (MJ) - or emissions per energy unit. The GHG intensity requirement applies to 100% of energy used on voyages and port calls within the EU/EEA and 50% of voyages into and out of the bloc.

As with the EU Emissions Trading System (EU ETS), it is the container segment that will bear the brunt of FuelEU costs, accounting for 29% of gross penalties, followed by RoPax on 14% with tankers and bulkers each on 13%.

“It is critical for shipping companies to determine a baseline for expected FuelEU costs to secure proper planning and budgeting processes to compare different mitigation options, as well as to decide what to do with outstanding compliance balances,” says OceanScore Managing Director Albrecht Grell.

“This will require, to a higher degree than the EU ETS, a corporate strategy to determine how to reduce the compliance balance/deficit, how to commercialise a surplus and deal with deficits that remain.”

Wide spread of vessel liabilities

OceanScore has found that liabilities per vessel will differ widely across the various segments due to increasingly diversified fuel choices, including greater uptake of biofuels and LNG. Passenger vessels will be penalised the most with an average of €520,000 per vessel annually, followed by RoPax at €480,000 and RoRo at €314,000, with an average penalty for container ships of only €214,000, according to OceanScore.

Grell points out there are also massive discrepancies between vessels within these segments, with a number of ships in the passenger and RoPax segments exposed to penalties of between €1.8m and €2.5m, and payment obligations for some container ships approaching €1m. This is driven by higher energy consumption simply due to vessel size and trading profile.

While penalties will arise from so-called compliance deficits for vessels using conventional fuels, surpluses totalling an estimated €669m will be generated mainly by vessels fuelled by LNG and LPG with significantly lower carbon intensity.

LNG carriers will account for 78% of the total market surplus and gas carriers 8%, while a further 8% will be generated by container ships that have seen a modest uptake in alternative fuels in recent years.

Pooling can halve costs for the industry

Taking into account this estimated compliance surplus, the net cost of FuelEU penalties for shipping from 2025 would be €680m, which indicates that pooling of vessels can roughly halve the gross burden for the industry.

Penalties will, in segments typically using conventional fuels with comparable carbon intensities such as HFO, LFO or MDO, be roughly proportional to the overall fuel consumption, thus correlating with the EU ETS cost.

Initial costs of FuelEU for most conventionally fuelled vessels, prior to pooling, will be around one-third of those associated with the EU ETS next year when the latter regulation will have 70% phase-in. But ultimately FuelEU is likely to prove a much more costly affair as the requirement for GHG intensity cuts rises to 6% by 2030 and then accelerates to reach 80% by 2050.

“It is therefore incumbent on shipowners to define their strategies not only towards fuel choices and the use of onshore power but also towards handling of residual compliance balances such as pooling, banking and borrowing of balances, to mitigate the financial impact of FuelEU. However, pooling will also come at a cost, while banking and borrowing will incur interest costs and only push liabilities into the future,” Grell explains.

‘Sound administrative processes’

He further points out that pooling compensations paid between different shipping companies will effectively divert cash flow away from the EU that it would otherwise have earned from FuelEU penalties – but that this effect is intended by the regulator to “reward” early adopters of clean fuels.

Another factor that will curb potential income for the EU from this regulation is that the compliance gap has been reduced to only 1.6% by 2022, as average GHG intensity from shipping has come down by 0.4% to 90.82 gCO2e per MJ, mainly due to increased LNG carrier calls to Europe after gas supplies via pipelines from Russia were halted when the latter invaded Ukraine. Given this trend and increasing adoption of biofuels, the 2% compliance gap will probably be closed before the first tightening of reduction targets in 2030.

Grell says the priority for shipping companies, especially at this early stage while cost exposure is relatively low, is to get to grips with the complexity of the regulation and tackle the risks arising from the fact the party liable for penalties - the DoC holder, or possibly shipowner - is not the one responsible for emissions, which is typically the charterer.

“As well as having costs oversight, companies require reliable monitoring and reporting mechanisms with high-quality emissions data. They must also have in place complex contractual arrangements and sound administrative processes to manage compliance and mitigate the financial consequences of the new regulation,” Grell concludes.

Related: FuelEU: New regulation leaves DoC holder with fuel liabilities risk, says OceanScore
Related: ‘Big opportunity’ for bunker traders, suppliers on upcoming FuelEU regulation, forecasts OceanScore


Photo credit: OceanScore
Published: 12 July, 2024

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