Bunker Fuel

MSC 109th session pushes adoption of alternative marine fuels

Meeting was chaired by Mrs. Mayte Medina of the United States, supported by Vice-Chair, Capt. Theofilos Mozas of Greece.

Published

2 weeks ago

December 31, 2024

Admin

The Maritime Safety Committee met for its 109th session (MSC 109) at IMO Headquarters in London (in-person with hybrid participation) from 2 to 6 December 2024.

The Committee adopted amendments to the IGC and the IGF Codes. Consideration was given to new technologies and alternative marine fuels for the development of a safety regulatory framework to support the 2023 IMO GHG strategy.

In relation to the above, the Interim Guidelines for the safety of ships using ammonia as fuel was approved, based on consideration by CCC 10.

The below is an excerpt from the meeting notes focusing on developments related to marine fuel:

Amendments to mandatory IGC and IGF Codes adopted

The Committee adopted amendments to the following mandatory Codes under SOLAS:

International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code)

The Committee adopted amendments to Chapter 16 of the IGC Code, related to the use as fuel of cargoes identified as toxic products, in the context of alternative fuels and new technologies. The amendments are expected to enter into force on 1 July 2026.

The Committee approved an MSC circular on the voluntary early application of the IGC Code, associated with these amendments.

International Code of Safety for Ship Using Gases or Other Low-flashpoint Fuels (IGF Code)

The Committee adopted amendments to parts A and A-1 of the IGF Code relate to ship design, fire safety, ventilation and other safety issues. The amendments are expected to enter into force on 1 January 2028.

Noting that there may be capacity-building implications in relation to these amendments to the IGC and IGF Codes, the Committee agreed to advise the Technical Cooperation Committee accordingly and encourage Member States in need of capacity-building assistance to contact IMO.

Development of a safety regulatory framework to support the reduction of GHG emissions from ships using new technologies and alternative fuels

The Committee received an update on the work of the Correspondence Group on Development of a Safety Regulatory Framework to Support the Reduction of GHG Emissions from Ships using New Technologies and Alternative Fuels (GHG safety).

The Correspondence Group, established at MSC 108, has been working on capturing detailed information (technical background, hazards, and risks to ship/shoreside) for the new technologies and alternative fuels. Safety obstacles and gaps in existing regulations are also being assessed.

The Committee endorsed the addition of a new category on "swappable traction lithium-ion battery containers" to the list of new technologies developed by the Correspondence Group. The Correspondence Group will continue work intersessionally and report to MSC 110.

Amendments to SOLAS Chapter II-1 on the application of IGF Code approved

While the International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code) applies to fuels that are gases or have a low-flash point, SOLAS Chapter II-1 states that the IGF Code applies to ships using low-flashpoint fuels, regardless of whether they were in liquid or gaseous form.

The Committee approved draft amendments to Chapter II-1 of the SOLAS Convention to clarify that the IGF Code applies to gaseous fuels or low flash-point fuels.

The approved SOLAS amendments will be submitted with a view to adoption at MSC 110 in June 2025, with expected entry into force in 2027.

Sub-Committee on the carriage of cargoes and containers (CCC 10)

Interim guidelines for the safety of ships using ammonia as fuel

approved MSC.1/Circular on Interim Guidelines for the safety of ships using ammonia as fuel.

Updated work plan for the development of new alternative fuels

endorsed the updated work plan for the development of new alternative fuels.

Draft amendments to the IGC Code and preparation of a new consolidated version of the Code

approved draft amendments to the IGC Code, in relation to filling limits for cargo tanks and safety provisions for gas carriers using LPG cargo as fuel, with a view to circulation in accordance with SOLAS article VIII and subsequent adoption at MSC 110.
with regard to preparation of a new consolidated version of the IGC Code, requested the Secretariat to submit an information document to MSC 110, highlighting all existing and pending amendments to the 2014 IGC Code, including a table of application dates of provisions for consideration, as appropriate.

Photo credit: International Maritime Organization
Published: 31 December 2024

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Bunker Fuel

China: Zhoushan Port achieves 7.26 million mt annual bunker volume for 2024

Zhoushan Hi-Tech Zone Administrative Committee highlighted the progress Zhoushan Port has made in the past year including actively planning to build an alternative fuel bunkering centre.

Published

23 hours ago

January 14, 2025

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China: Zhoushan Port achieves 7.26 million mt annual bunker volume for 2024

Zhoushan Hi-Tech Zone Administrative Committee on Friday (10 January) said Zhoushan, the fourth largest bunkering port of the world, delivered 7.26 million metric tonnes (mt) of marine fuel in 2024.

This marked about a 3% increase from 7.04 million mt in 2023.

The committee also highlighted the progress Zhoushan Port has made in the past year including actively planning to build an alternative fuel bunkering centre.

It has successfully obtained approval for the national biodiesel promotion and application pilot project. The construction of a project to produce an annual 1 million mt of marine biodiesel has begun.

The first methanol vehicle-to-ship pilot was carried out, and the first methanol bunkering barge in Zhoushan was officially built and is expected to be put into use by the end of 2025.

The port has also improved the fuel supply efficiency of various bunkering anchorages in Zhoushan including Tiaozhumen Anchorage adding three bunkering anchorages on top of the original five and has successfully carried out night bunkering operations.

Xiushandong and Mazhi anchorages have added a total of three new bonded bunkering anchorages, which can implement all-weather and fully automatic anchorage reservations, and provide advance reservations and priority refueling services for large ships and large orders.

The committee also highlighted Dong Fang Zhao Yang becoming the first domestic bunkering barge to obtain the mass flow meter system certification under the ISO22192:2021 standard. The barge conducted a successful pilot for the bunkering of bonded fuel oil using a mass flow meter at Xiushandong Anchorage on 9 December.

A spokesperson of the committee said Zhoushan will focus on promoting alternative bunker fuels such as biofuel and LNG and accelerating the completion of methanol refuelling safety assessments.

Photo credit: Zhoushan Hi-Tech Zone Administrative Committee
Published: 14 January, 2025

Bunker Fuel

Argus Media: Singapore bunker prices rise to multi-month highs

VLSFO prices on a delivered basis in Singapore jumped by $16.7/t to $590.72/t, the highest since 24 October 2024; HSFO prices jumped by $34.67/t to $507.67/t dob, the highest since 26 July 2024.

Published

24 hours ago

January 14, 2025

Admin

Bunker fuel prices in the port of Singapore touched multi-month highs today, supported by a rally crude futures.

13 January 2025

Ice Brent Singapore crude reached $81.23/bl by close of trading in the port city, following the announcement of sweeping sanctions by the US administration on Russian energy exports. Shipowners and bunker buyers in Singapore were cautious about procurement given the elevated prices. Many pushed back their bunker buying, preferring to monitor near-term market developments.

Very-low sulphur fuel oil (VLSFO) prices on a delivered basis in Singapore jumped by $16.7/t to $590.72/t, the highest since 24 October 2024. Deals concluded by 19:00 Singapore time had touched $599/dob and could breach $600/t in the coming days if strength in the energy complex continues.

"Market is firm… I would not dare to fix anything today," a ship owner said, adding that "buyers should be very careful" when making procurement decisions. Another vessel owner said its earliest VLSFO bunker requirement would be for delivery from 26 January, and it was not looking to trade at the moment.

"It is very difficult to know how things will proceed, but think it might move higher," said a UK-based bunker trader.

VLSFO supply availability is limited, which could further support upward movement in prices in the coming days.

High sulphur fuel oil (HSFO) prices jumped by $34.67/t today to $507.67/t dob, the highest since 26 July 2024. Marine gasoil (MGO) prices were at a six-month high $731/t dob in Singapore, up by $30/t from the previous session.

The upside in crude futures was reflected in marine biodiesel prices, with B24 rising in Singapore. B24, which is a blend of 24pc used cooking oil methy ester (Ucome) and 76pc VLSFO, were assessed by Argus$14-15/t higher at $721-726/t dob.

Traders said B24 prices will follow the trend in VLSFO cargo prices, but spot liquidity may remain thin.

"Today people are still trying to figure out what right value is," said a key shipowner and trader, adding that prices could rise further this week.

By Mahua Chakravarty and Cassia Teo

Photo credit and source: Argus Media
Published: 14 January, 2025

Business

Singapore-based EPS to invest in SulNOx, adopt fuel conditioner on at least 30 vessels

EPS will adopt SulNOxEco on a minimum of 30 vessels for a minimum of 18 months use per vessel following an extensive eight-month successful evaluation of SulNOxEco on various EPS-managed vessels.

Published

24 hours ago

January 14, 2025

Admin

Singapore-based EPS to invest in SulNOx, adopt fuel conditioner on at least 30 vessels

Maritime green tech firm SulNOx on Monday (13 January) said it has signed an agreement with Singapore-based Eastern Pacific Shipping, which encompasses both investment into SulNOx and a major new product supply contract for its SulNOxEcoTM fuel conditioner (SulNOxEco).

The agreement follows an extensive eight-month successful evaluation of SulNOxEco on various EPS-managed vessels including container ships, tankers, bulk and gas carriers. EPS Ventures Pte. Ltd. (EPSV) will also become a strategic shareholder in SulNOx.

Under the agreement, EPS, which manages a diverse fleet of over 300 vessels on water and on order, will adopt SulNOxEco on a minimum of 30 vessels for a minimum of 18 months use per vessel.

EPS will also provide information in relation to the results of the evaluation, which the Company will be able to use in its marketing activities, along with the ongoing support of EPS.

In addition, EPS will also collaborate with and act as an introducer for SulNOxEco, to some of the world’s largest shipping companies. The agreement itself will generate significant revenue and secure committed minimum product volumes of 250,000 litres. Further, the Board anticipates attracting additional customers and driving substantial further revenue growth.

Cyril Ducau, Chief Executive Officer of EPS, said, “This partnership with SulNOx is a significant step towards achieving EPS’s long-term sustainability objectives. By enhancing our operational efficiency and reinforcing our commitment to meeting global environmental standards, this collaboration further solidifies our position as a proactive leader in sustainable shipping practices.”

Radu Florescu, Chairman of SulNOx, said, “Signing the marquee shipping name of EPS after an extensive evaluation period proves the effectiveness of SulNOx products beyond doubt at a time when the industry is crying out for solutions to reduce fuel consumption and associated emissions against a backdrop of increasing regulation.”

“With this partnership, not only have we secured substantial, committed revenues, but there is also significant additional potential revenue from EPS’ introductions to some of the world’s largest fleets. This transaction marks a new and transformative era for the SulNOx Group, and we look forward to a long and mutually beneficial partnership with EPS, delivering the energy transition together.”

Photo credit: SulNOx
Published: 14 January, 2025