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Methanol Institute: ‘Turning point’ for methanol as bunker fuel reached with A.P. Moller – Maersk leading change

‘Economics of the shipping market will be the key driver enabling methanol to be adopted at a higher pace going forth over next couple years as market begins to return to more normal rates,’ states COO.

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NYK methanol bunkering at Rotterdam port on 21 July 2021

The adoption of methanol as a bunker fuel reached “a significant turning point” in 2022 due to developments led by A.P. Møller – Mærsk A/S, also known as Maersk, states the Chief Operating Officer at Methanol Institute.

“The Maersk announcement was significant because they are the number one shipper in the world and the decision by them to adopt methanol as the first fuel out of the gate indicates logic in doing so,” Chris Chatterton told bunkering publication Manifold Times.

“Their decision is not purely based on lowering carbon emissions but also based on broader aspects and economics including the ability to introduce methanol far into the future with much less risk than other alternative fuels.

“Maersk was the one to start the ball rolling and this had a ripple effect prompting many competitors to seriously consider methanol as a bunker fuel at different levels [targeting IMO 2030/2050].”

Methanol Institute, which serves as the trade association for the global methanol industry, has meanwhile been heavily involved in advising on enquiries from shipowners and bunkering firms – all keen to jump onto the methanol bandwagon, shares Chatterton.

“We know new vessels are coming and they require methanol as a bunker fuel at certain trading ports; hence, we have been very busy attending enquiries advising on locations for bunkering companies to establish market presence since the beginning of 2023,” he notes.

“For starters, we believe Singapore will make very good sense for methanol bunkering operations to launch simply because the republic is well known as a top bunkering port and it has everything available for players to support methanol refuelling activity.”

A Singapore project closely being monitored by Methanol Institute is the detailed feasibility study of methanol bunkering logistics in Singapore by Mitsui & Co., Ltd., Mitsui & Co. Energy Trading Singapore Pte. Ltd., Maersk Oil Trading, and American Bureau of Shipping.

The similar study features Singapore-based bunker player Kenoil Group of Companies (Kenoil) which is advising on last-mile delivery solutions for methanol bunkering.

“This study is considered by the Methanol Institute as the second major milestone for the adoption of methanol as an alternative bunker fuel for the shipping sector,” believes Chatterton.

The Methanol Institute says it is also working closely with class on a potential study for Singapore port operator and supply chain company PSA International Pte Ltd targeting methanol bunkering for smaller vessels.

“Reduction of emissions by local Singapore shipping firms will present them with a stronger case when approaching big shipping firms as a strategic partner,” he explains.

“This is the kind of work we are carrying out in the background to help domestic maritime businesses improve on their competitive advantage when serving these large international fleets – whose clients have a very big focus on sustainability and third-party emissions.”

Moving forward, Chatterton notes the return of shipping rates to pre-Covid levels and the introduction of Carbon Intensity Indicator (CII) requirements (taking effect from 2023) encouraging shippers to explore economic avenues for reducing operating costs [i.e. bunkers].

“That will translate into even more interest in methanol as a bunker fuel because the material, which is already a compliant marine fuel, is much more efficient to transport and store when compared to other alternative marine fuels,” he says.

“We need to look at today what we can do. In general, the economics of the shipping market will be the key driver enabling methanol to be adopted at a higher pace going forth over next couple years as market begins to return to more normal rates.”

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Related: Maersk introduces design of eight carbon-neutral methanol powered container newbuilds

 

Photo credit: NYK, Waterfront Shipping, Vopak, TankMatch
Published: 27 January, 2023

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Ammonia

Singapore: EMA, MPA shortlist two consortia for ammonia power generation and bunkering

Chosen consortia are Keppel’s Infrastructure Division and Sembcorp-SLNG, and the bunkering players in these consortia are Itochu Corporation, NYK Line and Sumitomo Corporation.

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RESIZED bunker tanker singapore

The Energy Market Authority (EMA) and the Maritime and Port Authority of Singapore (MPA) on Thursday (25 July) said they have shortlisted two consortia that will proceed to the next round of evaluations of proposals to provide a low- or zero-carbon ammonia solution on Jurong Island for power generation and bunkering. 

The two consortia were selected from a total of six that were earlier shortlisted in 2023 to participate in a restricted Request for Proposal (RFP), following an Expression of Interest (EOI) called in 2022. The bids were assessed based on the technical, safety and commercial aspects of their proposals. 

The two consortium leads are Keppel’s Infrastructure Division and Sembcorp-SLNG, and the bunkering players in these consortia are Itochu Corporation, Nippon Yusen Kabushiki Kaisha (NYK Line) and Sumitomo Corporation. The two consortia will proceed to conduct engineering, safety and emergency response studies for the proposed Project.

At the next phase, we will select one of the two bidders as the lead developer of the project. The lead developer will develop the end-to-end ammonia solution comprising (i) generating 55 to 65 MW of electricity from imported low- or zero-carbon ammonia via direct combustion in a Combined Cycle Gas Turbine; and (ii) facilitating ammonia bunkering at a capacity of at least 0.1 million tons per annum (MTPA), starting with shore-to-ship bunkering followed by ship-to-ship bunkering. 

Given the nascency of the technology and global supply chains, the Government will work closely with the appointed lead developer to implement the Project. We aim to announce the lead developer by Q1 2025.

The project is part of Singapore’s National Hydrogen Strategy launched in 2022, which outlines Singapore’s approach to develop low-carbon hydrogen as a major decarbonisation pathway as part of the nation’s commitment to achieve net zero emissions by 2050.

A key thrust of this strategy is to experiment with the use of advanced hydrogen technologies that are on the cusp of commercial readiness. Ammonia is currently one of the most technologically-ready hydrogen carriers with an established international supply chain for industrial use.

“If successful, the project will position Singapore as one of the first countries in the world to deploy a direct ammonia combustion power plant and support the development of ammonia bunkering for international shipping, EMA and MPA said.

“This will help to unlock the potential of low-carbon ammonia as a low-carbon fuel.”

 

Photo credit: Manifold Times
Published: 25 July 2024

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LNG Bunkering

China: River-sea LNG bunkering vessel named and delivered in Shanghai

The 14,000 cubic metre ship, “Huaihe Nengyuan Qihang”, was independently developed, designed and built by Hudong-Zhonghua Shipbuilding (Group) for Huaihe Energy Holding Group.

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China: River-sea LNG bunkering vessel named and delivered in Shanghai

China’s river-to-sea LNG bunkering vessel, which was built locally, was named and delivered in Shanghai on Monday (19 July), according to the Shanghai Association of Shipbuilding Industry (SASIC). 

The 14,000 cubic metre (cbm) ship, Huaihe Nengyuan Qihang, was independently developed, designed and built by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd for Huaihe Energy Holding Group as part of China’s "Gasification of the Yangtze River” project.

The ship is capable of travelling through the Nanjing Yangtze River Bridge all year round and has been dubbed a “Customised Yangtze River” LNG refuelling and transportation ship.

The ship is equipped with the B-type LNG containment system independently developed by Hudong-Zhonghua and authorised by a national patent.

According to SASIC, this was the first time such a system has been applied to a domestic LNG  refuelling and transportation ship, marking a major breakthrough in the B-type LNG containment system developed by China with independent intellectual property rights.

Related: China’s first river-sea LNG bunkering ship completes inaugural bunkering operation

Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.

 

Photo credit: Shanghai Shipbuilding Industry Association
Published: 25 July 2024

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Newbuilding

Singapore: EPS takes delivery of LNG dual-fuel bulker “Mount Ossa”

Firm said said the last vessel in its series of six 210,000 dwt DF LNG Newcastlemaxes chartered to Rio Tinto, was successfully delivered by New Times Shipbuilding.

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Singapore: EPS takes delivery of LNG dual-fuel bulker “Mount Ossa”

Singapore-based shipping firm Eastern Pacific Shipping (EPS) on Wednesday (24 July) said the last vessel in its series of six 210,000 dwt dual-fuel LNG Newcastlemaxes chartered to Rio Tinto, was successfully delivered.

The delivery of Mount Ossa marked the 21st vessel being delivered by New Times Shipbuilding to EPS.

“Despite global challenges, Rio Tinto and EPS have shown unparalleled resilience and a strong commitment to decarbonize shipping,” it said in a social media post.

“Over the past three years, these LNG-powered vessels have proven to be a sustainable choice, emitting 30% less than their conventional counterparts. We have successfully completed over 200 LNG bunkering operations, significantly reducing emissions across our fleet.”

“We celebrate our strong partnership with New Times Shipbuilding on this 21st milestone delivery to the EPS fleet, grateful to have 43 world-class vessels built and delivered, including those on order from New Times, which means we are only halfway through our esteemed collaboration.”

 

Photo credit: Eastern Pacific Shipping
Published: 25 July 2024

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