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MSC clarifies Transport & Environment report on shipping emissions in the EU

An analysis by Transport & Environment failed to take a number of MSC’s operational aspects into account, and misrepresented its environmental impact, it said.

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International shipping line Mediterranean Shipping Company (MSC) on Monday (15 June) said it is heavily investing in its fleet and low-carbon technology to support the industry’s transition towards zero carbon future.

MSC added it is acutely aware that international shipping has an impact on the climate and our decision to invest in low-carbon technology is complementary to the company’s broader strategic approach to sustainability.

The company added it operates a modern fleet and is running the biggest fleet investment programme in the industry to further reduce emissions.

MSC noted it also actively exploring and trialling a range of alternative fuels and technologies – pioneering large scale usage of up to 30% biofuel blends for container ships, for example – on top of some significant energy efficiency improvements across its fleet.

To meet the market demand while minimising emissions, MSC said it was the first shipping company to deploy 23K+ TEU, ultra-efficient vessels on some of the world’s busiest trade lanes (incl. the Mediterranean). 

In addition, MSC was the first major shipping line in 2019 to offer clients an option to fully compensate the remaining currently unavoidable carbon emissions caused by the transport of their cargo through participating in MSC’s Carbon Neutral Programme.

The company said it fully supports reporting CO2 emissions transparently and precisely in the European Union (EU) Monitoring, Reporting and Verification (MRV) system, as mandated by EU legislation.

A recent analysis by Transport & Environment on shipping emissions in the EU, failed to take a number of operational aspects of MSC’s services fully into account, and thus does not offer a complete assessment of our role and impact in terms of emissions, it noted.

To provide a comprehensive and accurate conclusion, CO2 emissions should be compared on an equal basis, suggested the company.

An analysis focusing on shipping emissions in the EU should only take into account emissions which actually occurred in the geographical area of the EU, if it is going to be compared to other sources limited to the same area. 

This is particularly relevant for a global company such as MSC, which operates in all the world’s major shipping lanes. 

A complete analysis would show that only 40-45% of the emissions reported by MSC in the MRV were actually in the EU. In addition, a correct analysis would also show that MSC has achieved 2.5% YOY reduction in absolute emissions under the MRV scheme in a single year.

Related: MSC trials alternative bunker fuels and offers clients carbon offsetting for sustainability


Photo credit: Mediterranean Shipping Company
Published: 8 July, 2020

 

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Alternative Fuels

Championing environmental stewardship: DNV partners Anglo American for vessel electrification feasibility study

Study revealed the potential transformation of Anglo American supported- Waterways Watch Society’s petrol-powered boats into battery electric vessels, aligning with their mission to safeguard waterways in Singapore.

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Classification society DNV recently sat down with global mining company and shipowner Anglo American to discuss their joint high-level vessel electrification feasibility study in the first episode of DNV’s Decarbonization Insights series.

In this session, DNV executed a feasibility study of battery electric boat operations for Waterways Watch Society (WWS), a non-profit organization supported by Anglo American.

The study revealed the potential transformation of WWS’ petrol-powered boats into cutting-edge battery electric vessels, aligning with their mission to safeguard waterways in Singapore.

Currently, there are six workboats powered by petrol at Waterways Watch Society, used/deployed for educational purposes, including collecting litter around Singapore’s waters.

The scope of work included technical assessment and commercial study on the electrification solutions.

Anesan Naidoo, Head of Sustainability at Anglo American, discussed how the innovative collaboration emphasizes their dedication to corporate responsibility, while DNV experts shared their perspectives on how vessel electrification is reshaping the landscape of maritime decarbonization in Singapore and the wider region.

Watch a trailer of the first episode of DNV’s Decarbonization Insights featuring Anglo American on DNV’s official YouTube Channel here.

 

Photo credit: DNV
Published: 15 April 2024

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Events

18th Singapore Maritime Week opens with ‘Actions meet Ambition’ theme

MPA will be making several announcements related to developments on low- emission maritime energy transition technologies, maritime artificial intelligence, cybersecurity, and manpower, over the five-day event.

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18th Singapore Maritime Week opens with ‘Actions meet Ambition’ theme

The Singapore Maritime Week (SMW), organised by the Maritime and Port Authority of Singapore (MPA), returned in its 18th edition with more than 50 events from 15 to 19 April 2024 at the Suntec Singapore Convention and Exhibition Centre.

Themed ‘Actions meet Ambition’, MPA said SMW is organised around four pillars - decarbonisation, digitalisation, services, and talent development. More than 10,000 maritime professionals from close to 40 countries, including delegates from governments, port authorities, international organisations, as well as industry experts and thought leaders are expected to attend SMW. 

In addition, the inaugural Expo@SMW trade exhibition, taking place from 16 to 18 April 2024 as part of SMW 2024, will showcase maritime solutions by close to 50 companies and startups.

SMW 2024 was launched by Mr Chee Hong Tat, Singapore’s Minister for Transport and Second Minister for Finance. Speaking at the Opening Ceremony, Mr Chee highlighted that Maritime Singapore has continued to grow year-on-year – a mark of the industry’s vote of confidence in Singapore, and the strong tripartite relationship between business, workers, and the government. 

Looking forward, Mr Chee said that Singapore aims to be a global hub for innovation, reliable and resilient maritime operations, and maritime talent, to better serve the current and future needs of our stakeholders and allow Singapore to contribute to global development and sustainability goals effectively.

A maritime dialogue was held on the topic of Supply Chain Resilience, Digitalisation and Decarbonisation. The panel, comprising Dr Volker Wissing, Federal Minister for Digital Affairs and Transport, Germany, Mr Even Tronstad Sagebakken, Deputy Minister, Ministry of Trade, Industry and Fisheries, Norway, and Mr Francis Zachariae, Secretary-General, International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA) was moderated by Professor Simon Tay, Chairman, Singapore Institute of International Affairs. 

The panel discussed the challenges the maritime sector faces when dealing with these changes and disruptions, the efforts and measures undertaken by them to prepare the maritime industry and its workforce, and the potential for various stakeholders to work together to address these challenges and capture new opportunities.

Other participants of SMW 2024 include Mr Arsenio Dominguez, Secretary- General of the International Maritime Organization (IMO); and Mr Sergio Mujica, Secretary-General of the International Organization for Standardization (ISO).

Speaking at his first maritime event in Singapore since his appointment as the Secretary-General of the IMO in January 2024, Mr Dominguez delivered a keynote speech at the Singapore Maritime Lecture that was moderated by Ambassador Mary Seet-Cheng, Singapore’s Non-Resident High Commissioner to the Republic of Fiji and Non-Resident Ambassador to the Pacific Islands Forum.

Secretary-General Dominguez emphasised the importance of ensuring seafarer safety and wellbeing, particularly in the light of geopolitical changes impacting shipping, and highlighted his vision for IMO to flourish as a transparent, inclusive, diverse institution. 

He also noted the rapid green and digital transition unfolding in the maritime sector, driven by the targets set by IMO Member States in the IMO 2023 GHG Strategy. 

Mr. Dominguez said: “IMO is on track to adopt mid-term measures by late 2025 to cut GHG emissions, to reach net zero targets. Alongside this regulatory work, there is a need to consider issues such as safety, pricing, infrastructural availability to deliver new fuels, lifecycle emissions, supply chain constraints, barriers to adoption and more.”

“Seafarers will require training to be able to operate new technologies as well as zero or near-zero emission powered vessels safely.”

“We need ‘early movers’ in the industry as well as forward-looking policy makers to take the necessary risks and secure the right investments that will stimulate long-term solutions for the sector. In this regard, we welcome the efforts being undertaken by Singapore to facilitate collaboration among maritime stakeholders, including the MPA-led Maritime Energy Training Facility.”

SMW 2024 will also bring together MPA’s Green and Digital Shipping Corridor (GDSC) partners, namely Australia, six ports in Japan, Port of Los Angeles, Port of Long Beach, Port of Rotterdam, and Tianjin, to discuss GDSC initiatives to support IMO’s Greenhouse Gases (GHG) emission reduction targets for international shipping.

These include the development and uptake of zero or near-zero GHG emission fuels at scale along corridor routes, technologies to accelerate decarbonisation, collaboration to enhance operational and digital efficiencies, as well as updates on key milestones achieved for the Singapore and Port of Rotterdam and the Singapore and Port of Los Angeles and Port of Long Beach GDSCs.

MPA will ink several partnerships and agreements with more than 30 partners during SMW 2024 in areas such as training and cybersecurity. These partners comprise international organisations, foreign governments and agencies, classification societies, maritime partners, institutes of higher learning, tech companies, trade associations, and unions. 

MPA will also be making several announcements related to developments on low- emission maritime energy transition technologies, maritime artificial intelligence, cybersecurity, and manpower, over the five-day event.

MPA and 22 partners , including the leading global marine engine manufacturers, today also signed a Letter of Intent to establish the Maritime Energy Training Facility (METF). The METF, supported by the tripartite maritime community in Singapore, aims to close the skills and competencies gap for the safe operation of new zero or near-zero emission-powered vessels.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 15 April 2024

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Alternative Fuels

Singapore-Rotterdam Green and Digital Shipping Corridor partners to implement first-mover pilot projects

Partners will carry out projects and testing out commercial structures to accelerate uptake of zero and near-zero emission bunker fuels, such as synthetic and bio-variants of methanol and ammonia.

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The Maritime and Port Authority of Singapore (MPA) and Port of Rotterdam Authority (PoR) on Monday (15 April) said the Singapore-Rotterdam Green and Digital Shipping Corridor (GDSC) has commenced the implementation phase and aims to enhance operational efficiencies and lower barriers for first movers to ensure availability, acceptability and affordability of alternative marine fuels. 

The corridor will accelerate transformation efforts for maritime decarbonisation and digitalisation.

The GDSC partners will convene for the inaugural GDSC Symposium as part of Singapore Maritime Week 2024. The partners include MPA, PoR, PSA International, A.P. Moller Maersk, CMA CGM, Hapag-Lloyd, MSC, Ocean Network Express, BP, Shell and Methanol Institute. 

The Singapore-Rotterdam GDSC was established by MPA and PoR in August 2022 to accelerate transformation efforts for maritime decarbonisation and digitalisation.

To-date, the GDSC initiative has brought together 26 global value-chain partners across shipping lines, fuel suppliers, port authorities and operator, industry coalitions, banks, leading institutes of higher learning and knowledge partners.

Hapag-Lloyd, the world’s fifth largest liner shipping company operating more than 260 ocean going vessels, is the latest addition to the corridor. Hapag-Lloyd joins four other leading global container shipping lines which have committed to deploying large container vessels running on zero-and near-zero emission fuels along the high-volume Asia-Europe trade lane.

Other new corridor partners include A*STAR Centre for Maritime Digitalisation (A*STAR’s C4MD), led by A*STAR’s Institute of High Performance Computing (A*STAR IHPC). A*STAR’s C4MD aims to develop advanced computational modelling, simulation and artificial intelligence solutions for a safe, efficient and sustainable maritime ecosystem. 

Encouraging the uptake of zero and near-zero emission fuels

The GDSC partners will be implementing several first-mover pilot projects and testing out commercial structures to accelerate the uptake of zero and near-zero emission fuels, such as synthetic and bio-variants of methanol, ammonia, methane, and hydrogen. This implementation follows earlier modelling studies undertaken by the Maersk Mc-Kinney Møller Centre for Zero Carbon-Shipping and the Centre for Maritime Studies of the National University of Singapore to explore multiple alternative fuels pathways and their viability as sustainable marine fuel.

Bio-methane Working Group

The bio-methane working group, led by SEA-LNG has examined relevant regulations and certification standards such as the ISCC EU certification to support the adoption of bio-methane for marine bunkering at a commercial scale. The GDSC partners plan to carry out Bio-LNG bunkering pilots over 2024 and 2025. These pilots would be based on mass balancing chain of custody principle that involves physical blending of certified bio-methane with non-certified conventional LNG across shared transport, storage and distribution infrastructure such as pipelines.

Methanol Working Group

Following the conduct of the Port of Rotterdam’s green methanol terminal bunkering operation on the world’s first methanol-fuelled container ship, and the world’s first ship-to-containership methanol bunkering at the Port of Singapore, the methanol working group, led by PoR, has worked on a clear starting point for fuel standards and knowledge exchange on chain of custody principles. The Working Group will also be addressing common challenges such as acceptability, availability, and affordability to carry out commercial methanol bunkering at both Ports of Singapore and Rotterdam.

Ammonia Working Group

The ammonia working group, jointly led by MPA, the Nanyang Technological University Maritime Energy and Sustainable Development Centre of Excellence, and the A*STAR’s C4MD will be developing a framework to assess the lifecycle greenhouse gas (GHG) intensity of green ammonia for bunkering, and a decision-making tool for value-chain partners to optimise their green ammonia supply chain network. This study, to be completed by 2025, will support ongoing efforts by the International Maritime Organization (IMO) to develop the Life Cycle GHG Assessment (LCA) framework and guidelines for alternative marine fuels.

Hydrogen Working Group

With Shell’s contribution, the hydrogen working group has been assessing the technical and economic feasibility of hydrogen as a marine fuel for ocean-going container vessels. Going beyond desktop-based studies, the working group aims to develop novel ship designs allowing the GDSC partners to understand the cost differential and how to practically overcome the challenges, whilst maximising the opportunities that hydrogen as a sustainable marine fuel offers.

Commercial Structures Working Group to reduce cost barriers to zero and near-zero emissions fuels

To support these fuel-based initiatives and drive commercial scalability, a working group led by PoR and the Global Maritime Forum (GMF), supported by the GDSC partners, is developing and testing commercial structures to reduce the cost barriers of using zero and near-zero emission fuels. The working group is currently exploring various demand and supply aggregation mechanisms and public and private financial levers that have the potential to collectively bring down the green premium and help bridge the cost gap.

Adoption of digital solutions for efficient and secure ship-shore data exchange and GHG emissions monitoring, reporting and verification (MRV)

On the digital front, Singapore and Rotterdam have successfully trialled the exchange of port-to-port data and are now able to exchange vessel arrival and departure times to facilitate port planning and for ships to optimise their port call voyage between Singapore and Rotterdam. Following this successful trial, Singapore and Rotterdam have jointly issued a call-for-proposal (CFP) for standards-based solutions that enable efficient and secure data exchange between ship and shore.

Related: MPA and Port of Rotterdam sign MoU to form world’s longest Green and Digital Corridor
Related: Partners in Rotterdam-Singapore Green & Digital Shipping Corridor support emission reductions
Related: New progress report highlights Rotterdam-Singapore Green & Digital Shipping Corridor
Related: MPA and Port of Rotterdam sign MoU to form world’s longest Green and Digital Corridor

 

Photo credit: Scott Graham on Unsplash
Published: 15 April 2024

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