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Methanol Institute: Europe’s shipping sector needs certainty for renewables transition

Forty-seven entities called for the maintenance of proposed 2% sub quota of renewable fuels of non biological origin and its application to all shipping firms.

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Methanol

The Methanol Institute, which serves as the trade association for the global methanol industry, was amongst 47 companies which recently submitted a letter to the EU Council calling for the maintenance of the proposed 2% sub quota of renewable fuels of non biological origin as part of plans to support to use of e-fuels as a bunker fuel for the shipping sector:

Leading companies from across Europe’s fuel production chain have joined with NGOs to press the European Union’s legislators to provide the clarity and certainty they need to make long term investments in the renewable fuels required for the clean energy transition.

In a letter to the EU Council, Parliament and Commission, 47 entities, representing the entire value chain of green fuels including suppliers, users and maritime technology providers, have called for the maintenance of the proposed 2% sub quota of renewable fuels of non biological origin with the final text of FuelEU Maritime and its application to all shipping companies.

The FuelEU Maritime directive is part of the “Fit for 55” set of proposals to revise and update EU legislation targeting a reduction of net greenhouse gas emissions by at least 55% by 2030.

Signatories to the joint letter including Danish Shipping, DFDS, SeaEurope and the Methanol Institute also ask lawmakers to introduce stronger GHG intensity limits and promote the use of e-fuels through use of a multiplier. This is necessary because while compliance with proposed GHG targets is possible using fossil fuels in short-term, steering investment away from fossil fuels requires a clear demand signal in terms of a sub-quota.

The letter makes clear that a dedicated, binding sub-quota for the maritime supply and demand is indispensable to give e-fuel producers and shipping companies the investment and planning security they need to achieve a swift ramp up of e-fuels.

“The sub-quota mechanism exists in the current text of the FuelEU Maritime legislation going before the Council and Parliament and must be retained if Europe is to secure the investment it needs in the clean fuels required for the energy transition,” said, Rafik AMMAR, Manager of Government and Public Affairs in Europe for the Methanol Institute. “Though a 2% sub quota sounds small, it has huge potential impact for the industry which will be charged in producing a range of renewable fuels; these producers need to have certainty to support the process of decarbonization.”

The letter also points out that an exemption from FuelEU Maritime for small companies and subsidiaries is counterproductive; large as well as small shipping companies must pull in the same direction without exemptions. The pooling system is a well-proven mechanism to help smaller companies comply but should be simplified and made more flexible and easier to access for any company.

The signatories express their support for the ongoing FuelEU Maritime trilogue between the Commission, Council and Parliament to set proactive, ambitious regulation, stating:

“The FuelEU Maritime Regulation has the potential to set the necessary regulatory preconditions for the decarbonisation of the shipping sector. The signatories call on the co-legislators to fully seize this opportunity to make the European industry a global leader in green shipping by raising the ambitions of the GHG intensity limits and promoting the uptake of green, sustainable e-fuels via a dedicated binding sub-quota. This should go hand in hand with matching targets on fuel suppliers and ports to ensure the availability of green e-fuels.”

 

Photo credit: Methanol Institute
Published: 26 January, 2023

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LNG Bunkering

Stabilis Solutions targets Q3 2028 launch for Galveston LNG bunkering facility

Firm received a LOR from US Coast Guard following a review of a LNG Facility and associated waterfront LNG loading, marine transportation, and LNG bunkering operations in the Port of Galveston.

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Stabilis Solutions targets Q3 2028 launch for Galveston LNG bunkering facility

Clean energy production solutions provider Stabilis Solutions (Stabilis) on Friday (24 July) said the proposed Stabilis Galveston LNG Facility is anticipated to be in production by the third quarter of 2028. 

It will come complete with the delivery of the first new-build, dedicated Jones Act-compliant LNG bunker barge in the Galveston/Houston area.

“This is a significant regulatory and project milestone for Stabilis,” the company said. 

This comes following Stabilis receiving a Letter of Recommendation (LOR) from the US Coast Guard following their formal review of the proposed Stabilis Galveston LNG Facility and associated waterfront LNG loading, marine transportation, and LNG bunkering operations in the Port of Galveston.

“This critical endorsement of our project from the USCG Captain of the Port to the Port of Galveston and the Galveston Fire Marshal comes after a rigorous safety and security review process,” it said.

“This included a comprehensive evaluation of the potential risks, including navigation hazards, vessel traffic density impacts, emergency response capabilities, maritime security threats, and application of appropriate mitigation measures.” 

Manifold Times previously reported Stabilis terminating a previously announced 10-year agreement with a leading investment-grade global marine operator to supply LNG from the company’s proposed 350,000 gallon-per-day Galveston liquefaction facility.

As a result, the company expected delays to the anticipated final investment decision, project financing, and development timeline for the Galveston LNG facility. 

Related: Stabilis Solutions terminates 10-year LNG supply deal, expects delay in Galveston project

 

Photo credit: Stabilis Solutions
Published: 24 July, 2026

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Wind-assisted

Fairfield Maritime Japan, Neste ink charter deal for WAPS-equipped MR tanker duo

Vessels will utilise low-sulphur fuels and will be capable of being retrofitted to operate on methanol at some point in the future.

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RESIZED scott graham

Fairfield Maritime Japan (FMJ) on Wednesday (22 July) said it has signed a long-term charter contract with Neste for two vessels. 

The agreement enables FMJ to fund and manage the construction of two Ice Class 1A medium range (MR) oil and chemical tankers for Neste’s transports to and from its refinery in Porvoo, Finland. Neste is a producer of renewable diesel and sustainable aviation fuel (SAF), also refining a wide range of oil products in Porvoo. 

Fairfield Maritime Japan Ltd. is a portfolio company of Fairfield-Maxwell Ltd., a family office for the Sugahara family headquartered in New York City.

The two new ships will each have the capacity to ship 50,000 deadweight tons (DWT) and will be built by HD Hyundai Co., Ltd. of South Korea and delivered in the first and second quarters of 2029.

As Ice Class 1A certified ships, the two new vessels will be capable of navigating in ice conditions with the support of icebreakers, adhering to the Finnish Swedish Ice Class Rules.

These rules encompass the specific requirements for vessels navigating the Baltic Sea during the winter season. The highly ice-resistant ships will be able to approach and depart Porvoo in the winter months, contributing to operational continuity for Neste’s Porvoo facility.

The vessels will utilise low-sulphur fuels and will be capable of being retrofitted to operate on methanol at some point in the future. 

The vessels will be ready for the future with the possibility to connect to shore power when that is available. In addition, the ships will be equipped with wind-assisted propulsion systems (WAPS) to supplement the ships’ main engines. These technologies will reduce fuel consumption, emissions and operating costs.

“We’re pleased to partner with Fairfield Maritime Japan and Fairfield-Maxwell. With these new state-of-the-art vessels, we are continuing our efforts to deliver safe and efficient sea transport to and from our Porvoo refinery,” said Sander Wilgenhof, Head of Chartering, Neste.

“We are proud to be Neste’s long-term partner,” said Ryuichi Osonoe, President, Fairfield Maritime Japan. 

“We believe that our knowledge and expertise will significantly assist Neste in its sea transportation. We are looking forward to seeing these two new ships cross the sea to safely export out of Neste’s Porvoo refinery.”

“Fairfield has been a partner of choice for world-class shippers for nearly 70 years,” said Byron Sugahara, chairman of the board of Fairfield-Maxwell. 

“This agreement with Neste is  confirmation that our family’s legacy in the shipping industry remains strong and provides a solid foundation for continued growth and success.”

 

Photo credit: Scott Graham
Published: 24 July, 2026

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Nuclear

Long Beach becomes first US port to partner with MARAD on nuclear-powered shipping

It became the first Port in the nation to sign a Memorandum of Cooperation with MARAD to advance work on development of SMR technology to power commercial vessels, ports and other maritime assets.

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Long Beach becomes first US port to partner with MARAD on nuclear shipping

The Port of Long Beach on Wednesday (22 July) said it became the first Port in the nation to sign a Memorandum of Cooperation with the US Department of Transportation’s Maritime Administration (MARAD) to advance work on development of small modular reactor (SMR) technology to power commercial vessels, ports and other maritime assets.

The agreement represents a significant milestone, making Long Beach the first US seaport to formalise a partnership with MARAD to establish nuclear-powered vessels for commercial service.

“This first-of-its-kind partnership with MARAD allows us to leverage strong federal leadership and private sector innovation to catalyse SMR technology as we safely and securely support the next generation of shipping,” said Port of Long Beach CEO Dr. Noel Hacegaba. 

“We’re building the Port of the Future in Long Beach, where we’ve led in global trade by moving USD 300 billion in cargo annually to support 2.7 million American jobs, and we will continue our tradition of leadership as we partner to advance nuclear energy in maritime and beyond.”

“Under President Trump’s and Secretary Duffy’s leadership, MARAD is taking decisive action to revitalise US shipbuilding and secure our national energy dominance,” said Maritime Administrator Stephen M. Carmel.

“This milestone agreement with the Port of Long Beach brings cutting-edge Small Modular Reactor technology into active testing. It ensures our maritime supply chains stay operational under any contingency while training the next generation of high-skilled American mariners.”

The agreement builds on momentum from MARAD’s Request for Information on 7 May, issued in the Federal Register, seeking industry input on the development of a US-built, scalable and commercially viable SMR for the nation’s marine transportation system. 

It also complements the Port’s new lease agreement with BlueCore Energy Inc., which allows the company to assemble, test and store maritime power modules, adding private-sector expertise to this the partnership with an American energy and technology company on the forefront of SMR development.

Demand for reliable electricity sources is forecast to grow substantially as the Port pursues a goal to double container volume by 2050. Under the agreement, the Port and MARAD will collaborate with the U.S. Coast Guard, the Department of Energy and the Nuclear Regulatory Commission to help define the operational protocols, safety standards and inspection processes needed to support the safe arrival and servicing of SMR-powered vessels at US ports, as well as to develop and share other best practices. 

 

Photo credit: Port of Long Beach
Published: 24 July, 2026

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