Methanol

MPA issues EOI seeking for methanol bunker fuel suppliers in Singapore

EOI comes after completion of world’s first ship-to-containership methanol bunkering operation in July in Singapore; aims to gather proposals for implementation of end-to-end methanol bunkering solutions.

Published

1 year ago

December 15, 2023

Admin

MPA issues EOI seeking for methanol bunker fuel suppliers in Singapore

The Maritime and Port Authority of Singapore (MPA) on Thursday (14 December 2023) issued an Expression of Interest (EOI) inviting parties interested in supplying methanol as a bunker fuel in the Port of Singapore, to submit their proposals by the end of February.

The EOI aims to gather proposals for the implementation of end-to-end methanol bunkering solutions in Singapore from 2025. The goal is to ensure a resilient supply of methanol to meet the international bunkering needs in the Port of Singapore given the expected delivery of methanol-capable vessels in the coming years.

The EOI focuses on three areas: (a) methanol supply sources, (b) methanol bunkering operation model at commercial scale in Singapore and, (c) alternatives to the physical transfer of methanol molecules to Singapore such as mass balancing.

MPA will assess the viability of various solutions in the proposals received, which will also inform and shape the development of MPA’s methanol bunkering licensing framework.

This EOI comes after the recent completion of the world’s first ship-to-containership methanol bunkering operation on 27 July 2023 in Singapore. Aside from the Technical Reference (TR) for methanol bunkering that will be developed, MPA is also working with industry partners to study methanol supplies, infrastructure requirements such as terminal facilities and methanol-carrying bunker tankers, seafarers training, and bunkering standards, as part of the broader effort to operationalise methanol bunkering and supply methanol at scale in the Port of Singapore.

Mr Teo Eng Dih, MPA Chief Executive, said: “The launch of this EOI marks an important step towards development of a methanol licensing framework to enable the supply of methanol at scale in the Port of Singapore. We look forward to working closely with interested parties on this effort which will be integral to help international shipping transit to green energy.”

In a social media post, Teo said Singapore can readily support the supply of methanol as a marine fuel to the domestic and international shipping community with methanol storage and bunkering infrastructure already available.

“Arising from industry feedback & demand projections, methanol demand volume in the Port of Singapore has the potential to exceed 1 million tons per annum (MTPA) before 2030,” he said.

Interested parties can visit MPA’s website at https://go.gov.sg/mpa-eoi-supply-methanol-bunkering to access or download a copy of the EOI documents. Queries are to be submitted to the MPA point-of-contacts stated in the EOI documents by 20 February 2024 and proposals submitted by 29 February 2024, 3.00pm (Singapore time).

Manifold Times recently reported Stellar Shipmanagement Services Pte Ltd, a wholly owned subsidiary of Global Energy Group, has taken delivery of a 4,000 DWT IMO Type 2 Chemical and Oil Tanker. MT MAPLE, classed by Bureau Veritas, is the first dedicated methanol bunkering tanker to operate in the port of Singapore.

Manifold Times previously reported Maersk and Hong Lam Marine Pte Ltd successfully conducted the world’s first ship-to-containership methanol bunkering operation of a Maersk’s container vessel on 27 July 2023 at the Raffles Reserved Anchorage in Singapore.

The operation marked Singapore’s first methanol bunkering operation.

Later, Manifold Times also reported The Methanol Institute (MI) stating the successful completion of Singapore’s first methanol bunkering pilot has given the republic a lead in adopting methanol as a marine fuel.

MI added the milestone operation between a Maersk containership and Hong Lam Marine tanker MT Agility was the first in Asia to feature a methanol-fuelled containership, and not a commercial product carrier transporting methanol.

Marine fuels testing company VPS was also the first company to complete a methanol bunker quantity survey (BQS) operation during Singapore’s first methanol bunkering operation.

Photo credit: Maritime and Port Authority of Singapore
Published: 15 December, 2023

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Alternative Fuels

DNV: LNG dominates alternative-fuel vessel orderbook for 2024

According to DNV, LNG was the industry’s alternative fuel of choice by year-end; 264 LNG vessel orders were placed in 2024, over double that of 2023 which was 130 orders.

Published

13 hours ago

January 13, 2025

Admin

The maritime industry’s exceptional newbuilding year 2024 drove a significant rise in orders for alternative-fuelled vessels, according to the latest data from DNV’s Alternative Fuels Insights (AFI) platform.

A total of 515 such ships were ordered, representing a 38% year-on-year increase compared to 2023, underscoring the industry's growing commitment to decarbonization.

The growth in alternative-fuelled vessel orders has been heavily driven by the container and car carrier newbuild boom over the last three years. In 2024, 69% of all container ship orders were for ships capable of being powered by alternative fuels, driven by cargo owners responding to consumer demands for more sustainable practices and liner companies preparing to replace older tonnage. The preferred fuel choice for this segment was LNG (67%). In total the container and car carrier segments made up 62% of all alternative fuel orders in 2024.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, said: “As we work towards decarbonizing the industry, we are encouraged by the growth in alternative fuel vessels over the past few years. While recent figures are promising, we must keep pushing forward.”

“The technological transition is underway, but supply of alternative fuel is still low. As an industry we need to work with fuel suppliers and other stakeholders to ensure that shipping has access to its share of alternative fuels in the future. It is also important that the safety of seafarers is ensured as we make this transition. This will require investment in upskilling and training.”

LNG was not the only fuel on shipowners’ minds as 2024 saw them betting on multiple alternative fuels. 166 methanol orders were added (32% of the AFI orderbook), reflecting shipping’s growing interest in a diverse fuel pool as it strives to reduce greenhouse gas emissions. Most of these methanol orders (85) were in the container segment.

While methanol drove newbuilding orders for alternative-fuelled vessels at the beginning of the year, LNG was the industry’s alternative fuel of choice by year-end. The number of LNG vessel orders placed in 2024 was 264, over double that of 2023 (130).

Ammonia saw promising momentum in the earliest months of the year and continued to grow throughout 2024. A total of 27 orders were placed for ammonia-fueled vessels. The first non-gas carrier ammonia-fuelled vessels orders were placed in 2024 (10), mainly in the bulk carrier segment (5). While still in its early stages, this provides further evidence of ammonia's emergence in the alternative fuel market.

Deliveries and bunkering

The number of LNG-fuelled ships in operation doubled between 2021 and 2024, with a record number of deliveries (169) in 2024. By the end of 2024, 641 LNG-powered ships were in operation. According to the AFI orderbook, this number is expected to double by the end of the decade.

While the bunkering infrastructure for some alternative fuels remains underdeveloped, LNG bunkering is maturing. The number of LNG bunker vessels in operation grew from 52 to 64 over the last year, with continued growth expected in 2025. The significant gap between LNG bunkering supply and demand is expected to widen over the next five years based on the AFI orderbook.

Addressing this challenge by developing the appropriate infrastructure for alternative fuels – both for vessels and bunkering - can create demand signals to stimulate long-term fuel production. With the EU regulatory package, Fit for 55, setting requirements on a large network of ports to have LNG bunkering infrastructure, it is expected that the availability of LNG in ports will increase.

Jason Stefanatos, Global Decarbonization Director at DNV, said: “Market conditions, infrastructure development, fuel production updates, and cargo owners' needs are all shaping the demand for different fuels, both in the short and long term.”

“The shifting trends in LNG and methanol orders this year might be due to the slow development of green methanol production. In the long run, green methanol has potential to be part of the energy mix along with ammonia.”

“In parallel, LNG offers a vital bridging fuel option benefiting from existing infrastructure and short-term emissions reductions while being capable of acting as a long-term solution as well, assuming RNG (Renewable Natural Gas) will be available and provided at a competitive price.”

Photo credit: DNV
Published: 13 January, 2024

Methanol

China: Shanghai Port commences regular methanol bunkering operations

Port carried out the first STS bunkering during simultaneous operations for large methanol-powered container ships for this year in Yangshan Port Area on 1 January, says SIPG.

Published

6 days ago

January 8, 2025

Admin

Ane Maersk during Shanghai Port's first methanol bunkering for 2025

Editor's note [8 January 2025]: Photo updated.

Shanghai Port has begun regular methanol bunkering services following its inaugural refuelling operation for this year, according to Shanghai International Port Group (SIPG) on Friday (3 January).

The port carried out the first ship-to-ship (STS) bunkering operation during simultaneous operations (SIMOPS) for large methanol-powered container ships for 2025 in Yangshan Port Area on 1 January.

SIPG’s bunkering vessel Hai Gang Zhi Yuan refuelled Ane Maersk with 3,000 metric tonnes (mt) of green methanol. The event also marked the second time the same bunkering vessel refuelled Ane Maersk.

The first-ever STS green methanol bunkering operation in Shanghai Port took place in April 2024 involving Astrid Maersk, which also marked the first green methanol bunkering in China.

Shipping giant A.P. Moller – Maersk (Maersk) announced the first green methanol bunkering with simultaneous cargo and bunkering operations in China, involving its containership Astrid Maersk.

Hai Gang Zhi Yuan is the first methanol bunkering vessel in the port.

Manifold Times previously reported SIPG stating Shanghai Port’s goal is to reach an LNG bunkering capacity of 1 million cubic meters (m3) and a green methanol bunkering capacity of 1 million mt by 2030, achieving a “double-million” target.

Currently, Shanghai Port operates two LNG bunkering vessels and one methanol bunkering vessel, with plans to add one more of each soon.

In 2023, SIPG also signed a MoU with Maersk to explore green methanol fuel vessel-to-vessel bunkering operation after the delivery of Maersk’s green methanol container vessels in 2024.

Photo credit: A.P. Moller – Maersk
Published: 8 January, 2025

Alternative Fuels

Shanghai Port ramps up LNG and methanol bunkering to achieve ‘double-million’ target

Shanghai Port’s goal is to reach an LNG bunkering capacity of 1 million cubic meters and a green methanol bunkering capacity of 1 million metric tonnes by 2030, says SIPG.

Published

7 days ago

January 7, 2025

Admin

CMA CGM achieves 100th SIMOPS LNG bunkering operation in Shanghai

Shanghai International Port Group (SIPG) recently said Shanghai Port’s goal is to reach an LNG bunkering capacity of 1 million cubic meters (m3) and a green methanol bunkering capacity of 1 million metric tonnes (mt) by 2030, achieving a “double-million” target.

Shanghai Port has completed 125 bonded LNG bunkering operations for international vessels, with a total bunkering volume of 730,000 m3 in 2024.

“LNG bunkering services are becoming regular services at the port, with expected annual bunkering volume reaching 450,000 m3 in 2024, a growth of over 70%,” it said.

Shanghai Port is also on track to achieve full coverage of LNG bunkering for its container terminals.

In April last year, Shanghai Port successfully completed China’s first green methanol bunkering operation for a large container vessel, marking a historic milestone for China.

Shipping giant A.P. Moller – Maersk (Maersk) announced the first green methanol bunkering with simultaneous cargo and bunkering operations in China, involving its containership Astrid Maersk.

By 2025, Shanghai Port will establish regular green methanol bunkering services.

Currently, Shanghai Port operates two LNG bunkering vessels and one methanol bunkering vessel, with plans to add one more of each soon.

Manifold Times previously reported SIPG signing a Memorandum of Understanding (MoU) with Korea-based integrated logistics company HMM to cooperate in the supply of clean marine fuel, focusing on bunkering methanol and LNG at Shanghai Port.

In 2023, SIPG also signed a MoU with Maersk to explore green methanol fuel vessel-to-vessel bunkering operation after the delivery of Maersk’s green methanol container vessels in 2024.