Alternative Fuels

MPA: Ammonia bunkering trial at Singapore port before end-2023 ‘not realistic’

‘The timeline before end-2023 is not realistic and should not prejudge the outcomes of the EOI, as well as further assessments and standards development by MPA and the relevant agencies,’ says MPA.

Published

2 years ago

May 3, 2023

Admin

The Maritime and Port Authority of Singapore (MPA) on Monday (1 May) released a statement in response to Singapore’s readiness to conduct ship-to-ship transfer of ammonia following a recent announcement on an ammonia bunkering safety study:

The Maritime and Port Authority of Singapore (MPA) welcomes studies, pilots and collaborations that contribute to the maritime sector’s decarbonisation efforts. These efforts must, however, be accompanied by thorough validation of the studies, calibration of models to assess the impact of incidents (such as through dynamic near and far field modelling and validation of mitigation measures) and rigorous procedures to ensure the safety of the port, port community and ship crew.

Pilots and trials involving the bunkering of new low and zero-emission fuels require comprehensive preparations, including the development of new safety procedures and draft bunkering standards, thorough end-to-end operational and other risk assessments, safety audits of bunkering and receiving vessels, development of 24/7 operational models, emergency procedures, updating the training and equipping of the ships’ crews involved, among others.

Such preparations are currently underway for the conduct of the first methanol bunkering operation in the port of Singapore. Over 80 participants, including 28 agencies, research institutes, associations and international bodies participated in table-top exercises on 26 April 2023 to discuss risk management and responses for methanol fuel bunkering. Ground deployment exercises and further training will be conducted before operations start in Q3 2023.

On 5 Dec 2022, MPA and the Energy Market Authority of Singapore (EMA) launched an Expression of Interest (EOI) to build, own and operate low or zero-carbon hydrogen and ammonia bunkering solutions. The EOI will enable Singapore to assess the viability of such projects, and support the development of safety standards, regulations and the ecosystem needed to support ammonia bunkering. The closing date for submissions was 30 Apr 2023, and MPA and EMA will thoroughly review the proposals received.

There were recent media posts and reports suggesting that Singapore was ready to conduct the first transfer of ammonia in Singapore’s port waters before end-2023. These articles also highlighted that “the risk identified for conducting (ammonia-related) pilots in the Port of Singapore were found to be low or mitigable, thus paving the way for a pilot project to take place at three identified sites”. These views do not represent the assessment of MPA and other government agencies – the timeline before end-2023 is not realistic and should not prejudge the outcomes of the EOI, as well as further assessments and standards development by MPA and the relevant agencies.

On 27 April 2023 during the Singapore Maritime Week, various ammonia-related studies such as by Vopak, the Maritime Energy & Sustainable Development Centre of Excellence (MESD) and A*STAR’s Institute of High Performance Computing were presented. For instance, MESD’s report titled “Ammonia as a Marine Fuel Bunkering, Safety and Release Simulations” provided an overview of the risks involved in handling ammonia as a bunker fuel, and the presentation highlighted that more dispersion and release studies are needed to better understand the impact of a release under various environmental conditions and scenarios, and that available mitigation and response measures will require further work.

MPA is committed to decarbonising the maritime sector and international shipping, and looks forward to working with partners to advance this effort in a safe, secure and sustainable manner. We remain open to the use of different alternative fuels which can reduce the maritime industry’s carbon emissions.

Photo credit: Justin Lim on Unsplash
Published: 3 May, 2023

LNG Bunkering

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

After departing from Saijo Shipyard, LNG fuel will be supplied directly to “Verde Heraldo” through shore-to-ship bunkering at Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

Published

8 hours ago

April 22, 2025

Admin

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

Mitsui OSK Lines (MOL) on Friday (18 April) said the naming and delivery ceremony for the LNG-fuelled Capesize bulker, which MOL ordered for JFE Steel Corporation, was held at the Saijo Shipyard of Imabari Shipbuilding.

The vessel was named the Verde Heraldo, which means “Green Pioneer” in Spanish, by JFE Steel President and CEO Masayuki Hirose. MOL executives including President & CEO Hashimoto were also on hand for the ceremony.

After departing from Saijo Shipyard, LNG fuel will be supplied directly to the vessel through shore-to-ship bunkering at the Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

The Verde Heraldo will sail under long-term transport contracts to supply raw materials for JFE Steel's mills, providing both reduced environmental impact and safe and reliable marine transport services.

About Verde Heraldo

LOA: 299.99 m
Breadth: 50.00 m
Draft: 18.436 m
Deadweight tonnage: 210,321 tonnes
Shipyards: Imabari Shipbuilding and Nihon Shipyard

Photo credit: Mitsui OSK Lines
Published: 22 April, 2025

Alternative Fuels

Indonesia and HDF Energy partner to study hydrogen solutions for maritime decarbonisation

Agreement between HDF Energy, Indonesia’s Ministry of Transportation, PLN and ASDP outlined a joint study to decarbonise Indonesia’s maritime sector using locally produced green hydrogen.

Published

8 hours ago

April 22, 2025

Admin

Indonesia and HDF Energy partner to study hydrogen solutions for maritime decarbonisation

PT HDF Energy Indonesia, a subsidiary of French hydrogen infrastructure developer HDF Energy, recently signed a Memorandum of Understanding (MoU) with Indonesia’s Ministry of Transportation (MoT), state-owned electric utility PT PLN (Persero) and ferry operator PT ASDP Indonesia Ferry (Persero).

The agreement outlined a joint study to decarbonise Indonesia's maritime sector using locally produced green hydrogen. The study will be conducted in collaboration with, and co-funded by, the International Maritime Organization (IMO).

The MoU was signed during the Global Hydrogen Ecosystem Summit on April 15, 2025 in Indonesia.

The study will focus on Eastern Indonesia, a region with plenty of sun and home to many of ASDP's strategic ferry routes. HDF Energy is currently developing 23 Renewstable® hydrogen power plants in the region. These facilities combine a solar park with substantial on-site energy storage in the form of green hydrogen to provide non-intermittent, stable and 100% clean electricity to the grid, day and night.

By generating surplus green hydrogen at a competitive marginal cost, Renewstable® plants also pave the way for the supply of green hydrogen to decarbonise maritime transport. The hydrogen produced will be used to power the high-power fuel cells developed and manufactured by HDF Energy in France, a modular, reliable solution tailored to the conversion of maritime fleets.

With this project, HDF Energy is deploying an integrated approach: producing competitive green hydrogen locally and offering a zero-emission maritime vessels' propulsion solution based on its fuel cells.

ASDP, which operates one of the world's largest ferry networks, plays a critical role in connecting Indonesia's remote islands. As a key player in the maritime sector's energy transition, the company will contribute to the study to identify opportunities for converting its fleet and port infrastructures. The aim is to replace traditional diesel engines with solutions based on green hydrogen and renewable electricity, in order to significantly reduce emissions.

PLN has already taken a proactive role in launching hydrogen pilot projects across the country. The company previously signed an MoU with HDF Energy to accelerate the deployment of Renewstable® hydrogen power plants as a green alternative to diesel-based power — a collaboration representing potential investments of up to USD 2.3 billion, supported by international development institutions including the U.S. International Development Finance Corporation (DFC).

On the same occasion, HDF also signed an MoU with PT Pelayaran Bahtera Adhiguna (PT BAg), a national shipping company specialising in sea transportation services for primary energy distribution across Indonesia. The partnership reflects a joint commitment to assessing hydrogen as a clean alternative to power auxiliary systems on large vessels.

Mathieu Geze, HDF Energy's Director for APAC and President Director of PT HDF Energy Indonesia, stated: “We are proud to reaffirm our commitment to a Net Zero emission future through this strategic collaboration. Working together with PLN, ASDP, the Ministry of Transportation, and with PT Bag, we aim to place Indonesia at the forefront of green hydrogen innovation in the Asia-Pacific. Our fuel cells represent a decisive step forward in the decarbonization of maritime transport in the Indonesian archipelago, as well as a formidable showcase for French innovation on the international stage.”

On a regional scale, this partnership in Indonesia is part of HDF Energy's development drive in Southeast Asia.

On 11 April, in the Philippines, HDF signed a MoU with the Department of Transportation to harness green hydrogen—produced by HDF's Renewstable® power plants currently under development—to power the next generation of hydrogen-fuelled maritime vessels.

The following day in Vietnam, HDF entered into a strategic partnership with ACST, an organisation affiliated with the Ministry of Construction, to advance green hydrogen solutions, including the retrofitting of diesel ferries with HDF's hydrogen fuel cells.

Photo credit: HDF Energy
Published: 22 April, 2025

Biofuel

Argus Media: IMO incentive to shape bio-bunker choices

IMO proposal for ship owners who exceed emissions reduction targets to earn surplus credits will play a key role in biofuel bunkering options going forward.

Published

8 hours ago

April 22, 2025

Admin

An International Maritime Organization (IMO) proposal for ship owners who exceed emissions reduction targets to earn surplus credits will play a key role in biofuel bunkering options going forward.

22 April 2025

The price of these credits will help determine whether B30 or B100 becomes the preferred bio-bunker fuel for vessels not powered by LNG or methanol. It will also influence whether biofuel adoption is accelerated or delayed beyond 2032.

At the conclusion of its meeting earlier this month the IMO proposed a dual-incentive mechanism to curb marine GHG emissions starting in 2028. The system combines penalties for non-compliance with financial incentives for over-compliance, aiming to shift ship owner behavior through both "stick" and "carrot" measures. As the "carrot", ship owners whose emissions fall below the IMO's stricter compliance target will receive surplus credits, which can be traded on the open market. The "stick" will introduce a two-tier penalty system. If emissions fall between the base and direct GHG emissions tiers, vessel operators will pay a fixed penalty of $100/t CO2-equivalent. Ship owners whose emissions exceed the looser, tier 2, base target will incur a penalty of $380/t CO2e. Both tiers tighten annually through 2035.

The overcompliance credits will be traded on the open market. It is unlikely that they will exceed the cost of the tier 2 penalty of $380/t CO2e. Argus modeled two surplus credit price scenarios — $70/t and $250/t CO2e — to assess their impact on bunker fuel economics. Assessments from 10-17 April showed Singapore very low-sulphur fuel oil (VLSFO) at $481/t, Singapore B30 at $740/t, and Chinese used cooking oil methyl ester (Ucome), or B100, at $1,143/t (see charts).

If the outright prices remain flat, in both scenarios, VLSFO would incur tier 1 and tier 2 penalties, raising its effective cost to around $563/t in 2028. B30 in both scenarios would receive credits putting its price at $653/t and $715/t respectively. In the high surplus credit scenario, B100 would earn roughly $580/t in credits, bringing its net cost to about $563/t, on par with VLSFO, and more competitive than B30. In the low surplus credit scenario, B100 would earn just $162/t in credits, lowering its cost to approximately $980/t, well above VLSFO.

At these spot prices, and $250/t CO2e surplus credit, B100 would remain the cheapest fuel option through 2035. At $70/t CO2e surplus credit, B30 becomes cost-competitive with VLSFO only after 2032. Ultimately, the market value of IMO over-compliance credits will be a major factor in determining the timing and extent of global biofuel adoption in the marine sector.

By Stefka Wechsler