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Malaysia: Port of Tanjung Pelepas achieves milestone with first methanol bunkering op

Successful operation demonstrates PTP’s readiness and capability to handle alternative marine fuels, paving the way for future trials and pilots, says Tan Sri Che Khalib Mohamad Noh.

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Malaysia: Port of Tanjung Pelepas achieves milestone with first methanol bunkering op

Port of Tanjung Pelepas (PTP), a joint venture between MMC Group and APM Terminals, recently successfully completed the first methanol bunkering operation for a Maersk dual-fuel methanol container vessel.

PTP did not disclose the bunkering vessel involved in the operation and the volume bunkered by Antonia Maersk.

The container vessel is the third in a series of 18 large dual-fuel newbuilds by the Danish shipping giant, capable of sailing on reduced emission methanol.

PTP’s Chairman, Tan Sri Che Khalib Mohamad Noh, highlighted that this milestone marks PTP’s first-ever ship-to-containership methanol bunkering operation.

“This step is pivotal in PTP’s mission to deliver top-quality services to our customers and solidify our position as a preferred port of choice in the region. This successful methanol bunkering operation demonstrates PTP’s readiness and capability to handle alternative marine fuels, paving the way for future trials and pilots of diverse and emerging fuel solutions,” he said.

PTP’s CEO, Mark Hardiman commended the collaboration among PTP, Maersk and the Malaysian Government, which sets a promising standard for future partnerships on infrastructure development, fuel bunkering capabilities and knowledge sharing.

“In preparation for this methanol bunkering operation, PTP worked closely with Maersk, Maersk Oil Trading, Malaysia Marine Department, Johor Port Authority, and various government agencies. Together, we conducted tabletop exercises and workshops, establishing rigorous safety procedures through comprehensive operational and risk assessments, modelling and validation; leading up to the deployment exercise.”

“This development underscores PTP’s dedication to safety and customer satisfaction, enabling us to offer shippers and consignees reliable, timely services through enhanced terminal efficiency and expanded capacity,” he said.

 

Photo credit: Port of Tanjung Pelepas
Published: 29 November, 2024

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Methanol

China: CHIMBUSCO Jiangsu completes methanol bunkering operation in Taizhou

Firm successfully delivered 79.5 metric tonnes of methanol bunker fuel to container ship “NCL VESTLAND” using a mobile methanol bunkering skid at Taizhou Sanfu Marine Engineering.

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China: CHIMBUSCO Jiangsu completes methanol bunkering operation in Taizhou

CHIMBUSCO Jiangsu on Tuesday (3 December) said it successfully refuelled the new methanol dual-fuel powered 1,300TEU container ship NCL VESTLAND at Taizhou Sanfu Marine Engineering.

The total amount of methanol bunker fuel delivered to the boxship was 79.5 metric tonnes.

CHIMBUSCO Jiangsu said the implementation of bunkering operation marked a major breakthrough for the company in the application of alternative fuels for ships, marking its ability to supply methanol marine fuel to ships on a regular basis.

A mobile methanol bunkering skid jointly developed by CHIMBUSCO Jiangsu and COSCO (Lianyungang) Liquid Loading & Unloading Equipment was used for the bunkering operation, which was successfully completed in 2.5 hours. 

In a separate statement, COSCO Shipping said the bunkering operation represented CHIMBUSCO Jiangsu’s first marine methanol fuel supply onshore.

The mobile methanol filling skid operates using the pump as its power source to facilitate simultaneous unloading and refuelling tasks. 

This skid includes several key functional modules, each of which is highly integrated. This integration ensures a safe and efficient process for transferring methanol fuel from tankers to a vessel’s fuel bunker, while also enabling seamless operation and intelligent management. 

The mobile methanol filling skid offers flexibility, requires low initial investment, and boasts a rapid bunkering rate of 180 cubic metres (m3) per hour. 

It stands as an optimal solution for methanol bunkering in the era before widespread adoption of methanol bunkering vessels. Additionally, it can provide bunkering support for shipyards to test new vessels and meet the bunkering requirements of the shipyard,” it added. 

 

Photo credit: CHIMBUSCO Jiangsu
Published: 6 December, 2024

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Alternative Fuels

GAC: Does Sweden’s alternative fuel development risk worsening a maritime Catch-22?

GAC Sweden’s Nils Igelström says Sweden faces having a surplus of renewable fuel options with limited access to wider European market; collaboration and clarity is needed to prevent stalling in shipping’s energy transition.

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GAC: Does Sweden’s alternative fuel development risk worsening a maritime Catch-22?

Sweden leads Europe in developing alternative fuels, driven by its 2045 net-zero emissions target and the IMO’s 2050 decarbonisation goal, and it is now making bold advances in renewable fuel options for commercial shipping. 

It is also investing heavily in infrastructure to support the development of biofuels, liquefied biogas and natural gas, and synthetic fuels like eMethanol. Many of these projects, although relatively nascent, showcase the country’s bold vision to lead the alternative fuel development pack.

Groundbreaking

In May 2023, Sweden broke ground on the FlagshipONE facility in Örnsköldsvik, targeting annual production levels of 50,000 tonnes of carbon-neutral eMethanol by combining carbon dioxide and green hydrogen for commercial shipping.

In February 2024, Jämtkraft AB launched NorthStarH2, with the goal of producing up to 100,000 tonnes of eMethanol each year to support Sweden’s green electricity supply and maritime needs.

But the development of alternative fuels goes beyond eMethanol. In August 2024, ScanOcean partnered with Vegoil to introduce a marine fuel derived from hydrotreated vegetable oil produced in Sweden. The tanker vessel Key Fjord successfully took on that product as bunker fuel at the Port of Oskarshamn, marking a step towards making biofuels commercially viable for maritime use.

Such developments highlight Sweden’s leadership in the development of greener fuel options for maritime use. But supply issues could put the brakes on by limiting their market reach.

Bunker fuels supply

The risk of oversupply

Shipping faces a ‘Catch-22’ scenario with alternative fuels: low adoption limits the infrastructure development while companies delay investing in newbuilds or retrofits until fuel supply chains expand. 

This production-market access disconnect risks oversupply in Sweden’s alternative fuel market, restricting access to the wider European maritime sector.

Nils Igelström, Managing Director at GAC Sweden, highlighted the challenge of balancing production and demand for renewable marine fuels: "Sweden is producing some of the most advanced renewable marine fuels, but cargo owners are unwilling to pay higher freight costs. Without buyers, the environmental benefits remain unrealised, stalling progress towards decarbonisation."

Despite interest from shipowners, low demand highlights the need for better market access. 

“Companies like Preem, lead the development of alternative fuels, but oversupply persists,” added Igelström. “With heavily investments in refineries and fuel development, these facilities will continue producing fuels regardless of current demand. However, the priority now is ensuring these fuels reach the market effectively.”

Nils Igelström Managing Director, GAC Sweden

Nils Igelström Managing Director, GAC Sweden

Beyond the Baltic

Supply chain bottlenecks of alternative fuels, including logistical challenges and limited port infrastructure in other parts of Europe, hinder the export of surplus alternative fuels and can lead to higher costs and regulatory complexities. This uneven distribution particularly affects vessels that do not have easy or regular access to the North and Baltic seas. 

“If a vessel calls at Gothenburg regularly, fuel supply isn’t an issue,” said Igelström. “But in areas lacking necessary infrastructure, accessing Sweden’s alternative fuel supplies is challenging. With availability limited to Sweden or Finland or Germany, shipping companies hesitate to invest in greener vessels without certainty of supply.” 

Igelström also emphasised the need to improve accessibility across Europe to encourage investments and support the maritime sector’s green transition. 

The cost factor

Logistical challenges raise costs, with bunkering accounting for up to 50% of a vessel’s daily operating costs. Greener alternatives, according to the World Economic Forum, can cost up to four times more than traditional heavy fuel oil. For an industry with tight margins and volatile freight rates, zero-emission shipping significantly increases the cost of goods. 

A study by Drewry estimated that switching to green methanol would increase fuel costs by 350%, equivalent to an additional US$1,000+ per 40 feet container shipped from Asia to Europe.

“There is a big price gap between renewables and fossil fuels. Exporting Sweden’s alternative fuels further increases costs, but that’s a necessary step to achieve shipping’s green potential,” Igelström said.

Collaboration and clarity

Shipping thrives on clarity, but gaps in regulatory goals, infrastructure, and environmental policies hinder the development of an effective green fuel supply chain.

“Shipping companies need certainty,” Igelström noted. “With tight margins, they can’t risk fuel unavailability, especially where delivery points are scarce. Collaboration across Europe is essential to build a uniform supply chain that ensures renewable-powered ships can operate globally. Policymakers, industry leaders, and international organisations must unite to create conditions for renewable fuels to succeed.”

Sweden is working with partners in Finland, Iceland and the Faroe Islands, leading the charge in devising a supply chain that can support the maritime sector’s access to green fuels. 

In May 2024, the Nordic Maritime Transport and Energy Research Programme launched the STORM project to address supply barriers, assess fuel suitability, and propose solutions to accelerate the green transition. Sweden’s leadership in this initiative highlights its commitment to not only fuel development, but also market accessibility. 

“Sweden is doing its part to drive shipping’s fuel transition through fuel development and regulatory frameworks. However, Europe must collaborate to efficiently distribute surplus renewable fuels across the continent,” Igelström concluded.

 

Photo credit: GAC Sweden
Published: 6 December, 2024

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Methanol

Methanol Institute: Advancing decarbonization through global partnerships (Week 48, 25 Nov to 1 Dec 2024)

New vessel launches are underscoring the growing share of the fleet powered by methanol while bunkering activity is increasing; shipowners are going further to secure their clean fuel supply chain.

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The 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:

Collaboration is a key driver to lowering maritime carbon emissions and transitioning the industry towards net zero. 

More shipping lines are lending their weight to decarbonization efforts, both the biggest and best known names and the smaller players that make up the bulk of the industry.

New vessel launches are underscoring the growing share of the fleet powered by methanol, and bunkering activity is increasing at the same time. 

Shipowners are going further in seeking collaboration with methanol producers and maritime centres of excellence to secure their clean fuel supply chain and promote training and awareness around the maritime energy transition.

Methanol marine fuel related developments for Week 48 of 2024:

MOL and Singapore MPA Collaborate on Decarbonization, Digitalization, and Maritime Training

Date: November 27, 2024

Key Points:

Mitsui O.S.K. Lines (MOL) has entered into a partnership with the Maritime and Port Authority of Singapore (MPA) to enhance collaboration in decarbonization, digitalization, and human resource development within the maritime industry. The agreement builds on existing decarbonization initiatives and extends cooperation to address broader maritime challenges.

Key areas of the partnership include establishing a supply system for next-generation fuels like methanol, ammonia, and hydrogen, and conducting research on wind propulsion technologies. This initiative aims to support Singapore’s role as a sustainable maritime hub and foster innovation in green shipping technologies.

Takeshi Hashimoto, CEO of MOL, highlighted the importance of this collaboration in tackling critical industry challenges, emphasizing the shared vision for sustainability. MPA’s commitment to creating a forward-looking maritime industry aligns with MOL’s strategies to advance decarbonization and digital transformation. The partnership is poised to drive impactful solutions, benefiting the global shipping industry and supporting Singapore’s maritime leadership.

Hapag-Lloyd Secures 250,000 MT Annual Green Methanol Supply with Goldwind

Date: November 28, 2024

Key Points:

Hapag-Lloyd has entered into a long-term agreement with Beijing-based clean energy firm Goldwind to procure 250,000 metric tons of green methanol annually. This supply will consist of a blend of bio-methanol and e-methanol, aiming to reduce greenhouse gas emissions by at least 70% compared to conventional fuels.

Goldwind plans to construct a new green methanol production facility in Hinggan League, China, expected to be operational by late 2027. However, Hapag-Lloyd anticipates receiving initial volumes of green methanol as early as 2026.

This agreement aligns with Hapag-Lloyd's Strategy 2030, which includes a commitment to the Paris Agreement's 1.5-degree target and significant investments in sustainable operations. The secured green methanol supply is projected to reduce the company's fleet emissions by up to 400,000 metric tons of CO₂e annually.

In support of this transition, Hapag-Lloyd is collaborating with Seaspan to retrofit five 10,100 TEU container ships with dual-fuel methanol propulsion systems, scheduled for conversion in 2026. 

COSCO Shipping Partners to Build Green Methanol Plant in Southeast Asia

Date: November 21, 2024

Key Points:

COSCO Shipping has signed a memorandum of understanding (MoU) with CP Group and Freepoint Commodities to collaborate on advancing green methanol production and utilization. The agreement focuses on constructing a green methanol production facility in Southeast Asia, leveraging regional biomass resources. The plant will adhere to stringent EU standards, ensuring high-quality and sustainable output.

This partnership underscores a shared commitment to decarbonizing the global shipping industry and fostering low-carbon solutions. COSCO highlighted the MoU as a testament to global cooperation in advancing environmentally friendly shipping practices and establishing benchmarks for green fuel innovation. 

Tsuneishi Shipbuilding Launches World’s First Methanol-Fueled Ultramax Bulker

Date: November 28, 2024

Key Points:

Japan's Tsuneishi Shipbuilding has launched the world’s first methanol-fueled Ultramax dry bulk carrier, a 65,700 DWT vessel designed to support the company’s decarbonization goals. The vessel, equipped with dual-fuel capabilities, was officially launched on November 22, 2024, and boasts a cargo capacity of 81,500 m³.

The milestone vessel was developed in alignment with Tsuneishi’s "Technology Development Roadmap," part of the company’s medium-term strategy to achieve carbon neutrality. The ship features advanced methanol fuel tank technology derived from in-house expertise in manufacturing pressure tanks for LPG carriers and LNG fuel tanks.

Masatoshi Date, the factory manager, emphasized Tsuneishi's commitment to scaling production of methanol-fueled vessels by collaborating with group companies and leveraging overseas factories. The shipyard plans to expand its dual-fuel technology deployment, furthering its role in shaping a sustainable future for the shipping industry. 

Maersk Unveils Methanol-Fueled Boxship A.P. Møller in Singapore Ceremony

Date: November 28, 2024

Key Points:

AP Moller-Maersk has named its latest methanol-fueled container vessel, A.P. Møller, during a ceremony in Singapore on November 28, 2024. The dual-fuel ship, named after the company’s founder, Arnold Peter Møller, is the newest addition to Maersk’s fleet designed to operate on methanol, reinforcing the company’s decarbonization strategy.

Ditlev Ingemann Blicher, President of Asia Pacific at Maersk, emphasized the significance of this launch in Singapore, a central hub in Maersk’s Asia-Pacific operations. The vessel highlights Maersk’s commitment to sustainable shipping and its leadership in adopting alternative fuels to meet global decarbonization goals.

Maersk has been a pioneer in integrating methanol-powered vessels into its operations, with several such ships already in service and more under construction. The launch of A.P. Møller signifies another milestone in the company’s transition to greener maritime operations.

Pacific Basin Shipping Orders Four Methanol-Fueled Bulk Carriers to Expand Green Fleet

Date: November 29, 2024

Key Points:

Pacific Basin Shipping has placed an order for four dual-fuel methanol bulk carriers with Nihon Shipyard Co in Japan. These 64,000 DWT Ultramax vessels, capable of operating on methanol, biodiesel, or conventional fuel oil, are scheduled for delivery in 2028 and 2029.

The company emphasized that this order is a significant step in its journey toward achieving net-zero emissions by 2050. The ships are designed to comply with upcoming regulatory requirements, including FuelEU Maritime rules and anticipated IMO mandates on sustainable fuels.

Additionally, Pacific Basin has signed a memorandum of understanding (MoU) with Mitsui & Co to secure a supply of green methanol for its fleet, ensuring readiness to meet future decarbonization goals. 

Port of Tanjung Pelepas Completes Inaugural Methanol Bunkering Operation

Date: November 29, 2024

Key Points:

The Port of Tanjung Pelepas (PTP), a joint venture between MMC Group and APM Terminals, has successfully conducted its first methanol bunkering operation by refueling the Antonia Maersk, a dual-fuel container vessel capable of operating on methanol. This vessel is the third in a series of 18 large dual-fuel newbuilds commissioned by the Danish shipping company Maersk.

This operation marks PTP's inaugural ship-to-containership methanol bunkering, underscoring the port's readiness to handle alternative marine fuels. PTP's Chairman, Tan Sri Che Khalib Mohamad Noh, noted that this achievement is pivotal in delivering top-quality services and solidifying PTP's position as a preferred regional port.

In preparation for this operation, PTP collaborated closely with Maersk, Maersk Oil Trading, the Malaysia Marine Department, Johor Port Authority, and various government agencies. 

The partners conducted tabletop exercises and workshops to establish rigorous safety procedures through comprehensive operational and risk assessments, modeling, and validation. PTP's CEO, Mark Hardiman, highlighted that this collaboration sets a promising standard for future partnerships in infrastructure development, fuel bunkering capabilities, and knowledge sharing.

 

Photo credit: Methanol Institute
Published: 5 December, 2024

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