Alternative Fuels

MPA joins industry leaders to discuss decarbonisation strategies

Strong partnerships among public sector, private sector and research community can help test the efficacy of new bunker fuels, says Teo Eng Dih of MPA.

Published

7 months ago

March 1, 2023

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Preparing the region’s marine and offshore industries to prosper through the clean energy transition was the focus at the ABS Southeast Asia Regional Committee Meeting.

The Chief Executive of the Maritime and Port Authority (MPA) of Singapore joined leaders of Asia’s shipping industry to discuss decarbonisation strategies, cutting edge technologies and the evolving regulatory landscape.

ABS Chairman, President and CEO Christopher J. Wiernicki announced the appointment of Panos Koutsourakis to Vice President, Global Sustainability, who is based in Singapore, to the committee.

“Our industry stands on the cusp of a decade or more of truly disruptive change. As we look to navigate the clean energy transition, the scale of the challenge before us is daunting. But, as we heard from this influential group of industry leaders, change is also an opportunity and by working together we can deliver a cleaner, more sustainable industry. As a leader in Singapore’s marine and offshore industries, ABS is supporting our clients and members in the region with advanced solutions in technology, strategy and compliance,” said Wiernicki.

Teo Eng Dih, Chief Executive of the MPA delivered an update on the MPA’s decarbonisation and green transition initiatives.

“There is an urgent need to accelerate the pace of decarbonisation to meet consumer and investor demand and to enhance the IMO 2050 target for greenhouse gas reduction. To meet these challenges, strong partnerships among the public sector, the private sector and the research community can help reduce the energy demand of vessels, help ship owners adopt energy-efficiency measures and renewables, and test the efficacy of new maritime fuels such as biofuels, ammonia and hydrogen. MPA will continue to work closely with our partners, including classification societies such as ABS, to address the challenges and seize new opportunities to shape the future of shipping,” said Teo.

The head of the global simulation center, Dr. Gu Hai, ABS Vice President, shared a demonstration with the committee members of the new ABS green corridor simulation tool, which allows stakeholders to accurately evaluate the performance of potential green corridors.

The committee also heard about ABS’ industry leading safety performance, the latest regulatory developments and market trends.

“Maritime is an impressive industry, doing amazing things every day from keeping global trade flowing to exploring new technologies that improve efficiency, HSE and advance the energy transition. I am pleased to be associated with the committee, comprised of experienced leaders and, together with ABS, putting our skills together to keep operations safe and shape the services of the future,” said Captain Rajalingam Subramaniam, President and Group CEO of MISC Berhad, and Chairman of the ABS Southeast Asia Regional Committee.

The Committee meetings are a forum for ABS members, including owners, operators, charterers, and industry representatives from flag Administrations, owner associations, and the shipbuilding and insurance sectors, to come together with ABS leaders and discuss industry issues and developments. These forums are an important part of an ongoing dialogue with the industry to address technical, operational and regulatory challenges.

In a social media post on the meeting, Mr. Teo, said: “MPA and ABS are collaborating in a number of modelling studies for digital twins, and as part of the SABRE consortium that has received ABS' approval-in-principle for ammonia bunkering vessel design.”

“We will work on new maritime testbeds of shipboard operational technology systems for cybersecurity together with Singapore University of Technology and Design (SUTD) and the Centre of Excellence in Maritime Safety, Singapore Polytechnic. There is also much scope for ABS and other class societies to work on standards for maritime electrification and new maritime fuels.”

Manifold Times previously reported MPA entering into three Memoranda of Understanding (MoU) agreements with two green shipping consortiums on the ammonia value-chain – signalling its support for the consumption of ammonia, amongst other material, as a bunker fuel.

One of the MoUs was with the SABRE consortium, comprising ABS, Fleet Management Limited, Kawasaki Kisen Kaisha, Ltd. (“K-Line”), Keppel O&M, A.P. Moller – Maersk A/S, Maersk Mc-Kinney Møller Center for Zero Carbon Shipping, and Sumitomo Corporation, will work on development works to establish an integrated ammonia supply chain, with the goal to commence ammonia bunkering within this decade.

Photo credit: ABS
Published: 1 March, 2023

Methanol

Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Firm ordered a 65,700-dwt methanol dual-fuel dry bulk carrier with Tsuneishi Shipbuilding; MOL signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027.

Published

3 days ago

September 22, 2023

Admin

Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Japanese shipowner Kambara Kisen has ordered a 65,700-dwt methanol dual-fuel dry bulk carrier newbuilding from Tsuneishi Shipbuilding Co., Ltd, according to Mitsui O.S.K. Lines (MOL) on Wednesday (20 September).

MOL said it signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027.

The vessel will be designed to use e-methanol produced primarily by synthesising recovered CO2 and hydrogen produced using renewable energy sources, and bio-methanol derived from biogas.

The vessel's design maximises cargo space while ensuring sufficient methanol tank capacity set to allow the required navigational distance assuming various routes, at the same time maximising cargo space.

MOL added the vessel is expected to serve mainly in the transport of biomass fuels from the east coast of North America to Europe and the U.K. and within the Pacific region, as well as grain from the east coast of South America and the U.S. Gulf Coast to Europe and the Far East.

Details on the time-charter contract:

Shipowner: Kambara Kisen wholly owned subsidiary
Charterer: MOL Drybulk Ltd.
Charter period 2027: -

Details on the newbuilding methanol dual fuel bulk carrier:

LOA: About 200 m
Breadth: About 32.25 m
Draft: About 13.80 m
Deadweight: About 65,700 MT
Hold capacity: About 81,500m3
Shipyard: Tsuneishi Shipbuilding Co., Ltd.

Photo credit: Mitsui O.S.K. Lines
Published: 22 September, 2023

Methanol

Argus Media: Alternatives may drive methanol market growth

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand, according to Argus.

Published

3 days ago

September 22, 2023

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The growth of sustainable alternatives to traditional methanol production sources likely will shape the market over the next several years, industry leaders said this week at the Argus Methanol Forum.

20 September

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand.

"The aim is to be net zero by 2050 but [those solutions are] expensive today and one of the main challenges to build e-methanol or bio-methanol plants is a huge queue for these pieces of equipment that aren't available," Anita Gajadhar, executive director for Swiss-based methanol producer Proman, said.

Bio-based and e-methanol plants of commercial scale, like Proman's natural gas-fed 1.9 million metric tonne/yr M5000 plant in Trinidad and Tobago, are not ready today.

"But that's not to say 10 years from now they won't be there," Gajadhar added.

Smaller projects are popping up. Dutch fuels and gas supplier OCI Global announced plans last week to double the green methanol capacity at its Beaumont, Texas, facility to 400,000 t/yr and will add e-methanol to production for the first time. Production will use feedstocks such as renewable natural gas (RNG), green hydrogen and biogas.

The globally oversupplied methanol market will not get any major supply additions starting in 2024 until 2027. But that oversupply will not last long, Gajadhar said.

Global demand has slowed this year, driven by stagnate economic growth and higher interest rates, according to industry observers.

As much as half of methanol demand is tied to GDP growth, with total methanol demand estimates at 88.9mn t globally in 2023. This is essentially flat from 2022, but up from 88.3m t in 2021 and 87.7mn t in 2020, Dave McCaskill, vice-president of methanol and derivatives for Argus Media's consulting service, said.

Demand is not expected to rebound to 2019 levels of 89.6mn t until 2024 or 2025, he added.

The period of oversupply combined with lackluster demand places methanol in a transition period, Gajadhar said, which opens the door for sustainable feedstock alternatives to shape market growth.

Danish container shipping giant Maersk and French marine logistics company CMA-CGM announced earlier this week a partnership to drive decarbonization in shipping. The partnership seeks to develop fuel and operations standards for bunkering with alternative fuels. The companies will develop net-zero solutions, including new technology and alternative fuels.

Maersk has previously ordered dual-fuel methanol-powered vessels and CMA-CGM LNG-propelled vessels.

The demand for alternative feedstock-derived fuels is there, but the ability to scale-up such production lags. Certified lower-carbon methanol produced using carbon capture and sequestration — also known as blue methanol— can ramp up much more quickly, according to Gajadhar.

By Steven McGinn

Photo credit and source: Argus Media
Published: 22 September, 2023

Biofuel

Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Firm expanded its biofuel testing this summer in Europe to two additional ships — Royal Caribbean International’s “Symphony of the Seas” and Celebrity Cruises’ “Celebrity Apex”.

Published

3 days ago

September 22, 2023

Admin

Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Royal Caribbean Group on Tuesday (19 September) said it successfully completed over 12 consecutive weeks of biofuel testing in Europe.

Royal Caribbean International’s Symphony of the Seas became the first ship in the maritime industry to successfully test and use a biofuel blend in Barcelona to meet part of her fuel needs.

The company confirmed onboard technical systems met operational standards, without quality or safety concerns, demonstrating the biofuel blend is a reliable “drop in” supply of lower emission energy that ships can use to set sail across Europe and beyond.

The tests across Europe also provided valuable data to understand the availability and scalability of biofuel in the region, the firm added.

Jason Liberty, president and CEO, Royal Caribbean Group, said: “This is a pivotal moment for Royal Caribbean Group’s alternative fuel journey.”

“Following our successful trial of biofuels this summer, we are one step closer to bringing our vision for net-zero cruising to life. As we strive to protect and promote the vibrant oceans we sail, we are determined to accelerate innovation and improve how we deliver vacation experiences responsibly.”

President of the Port of Barcelona, Lluís Salvadó, said: “Royal Caribbean’s success is a clear example of how commitment to innovation makes possible the development of solutions to decarbonise the maritime sector.”

“In this case, it involves the cruise sector and focuses on biofuels, an area in which the Port of Barcelona is already working to become an energy hub, producing and supplying zero carbon fuels, such as green hydrogen and ammonia, and of other almost zero-carbon alternative fuels, such as methanol, biofuels or synthetic fuels. Innovation and collaboration between ports and shipping companies is key to accelerate the decarbonisation of maritime transport.”

The company began testing biofuels last year and expanded the trail this summer in Europe to two additional ships — Royal Caribbean International’s Symphony of the Seas and Celebrity Cruises’ Celebrity Apex.

The sustainable biofuel blends tested were produced by purifying renewable raw materials like waste oils and fats and combining them with fuel oil to create an alternative fuel that is cleaner and more sustainable. The biofuel blends tested are accredited by International Sustainability and Carbon Certification (ISCC), a globally recognized organization that ensures sustainability of biofuels and verifies reductions of related emissions.

With Symphony of the Seas departing from the Port of Barcelona and Celebrity Apex departing from the Port of Rotterdam, both ships accomplished multiple sailings using biofuel and contributed critical data on the fuel’s capabilities.

“These results will help accelerate Royal Caribbean Group’s plans to continue testing the use of different types of biofuels on upcoming European sailings this fall. The company is exploring strategic partnerships with suppliers and ports to ensure the availability of biofuel and infrastructures to advance the maritime energy transition,” the firm said.

Photo credit: Royal Caribbean Group
Published: 22 September, 2023