Alternative Fuels

Mumbai seminar: Participants indicate confidence in methanol as a bunker fuel

With technological and regulatory challenges associated with methanol as a bunker fuel largely resolved, it’s time for the industry to embrace methanol, says organiser.

Published

2 years ago

May 20, 2022

Admin

With the technological and regulatory challenges associated with burning methanol as a bunker fuel largely resolved, it’s time for the industry to move forward and get ready to go green with methanol.

That was the view widely expressed at Rise of Methanol As A Future Proof Marine Fuel seminar held in Mumbai and online on Friday (29 April), says Sea Commerce America Inc, one of the seminar organisers.

It was back in August 2021 that methanol secured its position as a future marine fuel when A.P. Moller - Maersk announced an order for 12 large ocean-going container ships to operate on carbon-neutral methanol.

This landmark order has raised the profile of this promising fuel. However, each shipowner faces unique challenges, and it is not enough to just follow Maersk’s lead and expect success.

In the seminar the panel of experts spoke in detail on installation options, fuel cost and availability, bunkering infrastructure, and e-fuel production potential.

Today, methanol made from natural gas, offers a lifecycle GHG reduction of 5-15% compared to diesel as well as immediate reductions in SOx, NOx, and particulate matter. Methanol offers a 2% lower fuel consumption per kWh than diesel fuel, and engine corrosion and fuel slip are not an issue due to the high combustion rate achieved by the engine designers.

In case of a spill, methanol is miscible in water, with near zero risk of damage to the environment and near zero potential harm to the wildlife.

IMO regulations on handling methanol are well developed within the IGF Code and the Methyl/Ethyl Interim guidelines. Still to come could be rules for methanol bunkering and standards for fuel quality.

Class oversight is well established. ABS, a pioneer in this, will class the Maersk vessels, and its safety evaluation will include design considerations such as the need for cofferdams between fuel tanks and fire risk areas, double-barriers and sealing systems, ventilation and gas detection, explosion mitigation, and redundancy.

The Maersk newbuilds will require larger bore engines than current dual-fuel methanol LGIM installations, and MAN expects a further increase in engine size to be available soon. This will open up the market for other large, ocean-going vessels, and MAN is already seeing a lot of interest in retrofits.

Berit Hinnemann from Maersk talked about the partnership Maersk has entered into with the producers of Green Methanol to supply their methanol-powered fleet. Maersk will require 10,000 tonnes in the year 2023 and 500,000 tonnes by mid-2025.

Berit also mentioned that Maersk sees “methanol in combination with biodiesel for the pilot vessel as the only certain and scalable pathway towards significant impact this decade.”

These 16,000 TEU DF Maersk vessels are to be classed with ABS and will provide “20 percent improved energy efficiency per transported container”.

Mr. Vikrant Rai, took over the stage and presented the regulatory views on the subject. He also stressed upon the importance of port energy enhancements and ship energy enhancements.

The event was designed to address the needs of shipowners and operators, and moderated by Richard Clayton, Chief Correspondent at Lloyds List. Speakers, including the host and organiser Capt. Saleem Alavi, delved into the technical, commercial, and regulatory details.

Top industry experts spoke on the occasion including Berit Hinnemann, Head of De-Carbonization Business Development at Maersk; Ayca Yalcin, Director Market Development EMEA at Methanex; Chris Chatterton, Chief Operating Officer at the Methanol Institute; Fredrik Stubner, Chief Executive Officer, Green Marine Engineering; Kjeld Aabo, Director New Technology at MAN Energy Solutions; Rene Laursen, Manager of Global Gas Solutions at ABS; Vijay Arora, Managing Director Indian Register of Shipping; Vikrant Rai, Engineer & Ship Surveyor cum-Deputy DG(Tech), Mumbai.

Most of the nearly 400 event participants indicated that they had more confidence in methanol’s viability as a bunker fuel after hearing from the expert presenters.

The event organisers were Sea Commerce America Inc. and Institute of Marine Engineers of India’s Mumbai Branch and sponsored by Methanex, Canada and Methanol Institute, Singapore.

Photo credit: Sea Commerce America Inc.
Published: 20 May, 2022

Bunker Fuel

China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October

Global marine bunker development will be among main topics of discussion at the 7th International Petroleum and Natural Gas Enterprises Conference (IPEC).

Published

16 hours ago

October 11, 2024

Admin

China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October

The 7th International Petroleum and Natural Gas Enterprises Conference (IPEC) is taking place at Zhoushan, Zhejiang province, China between 16 to 17 October.

The agenda, provided by the Zhoushan High-tech Zone Administrative Committee to foreign event media partner Singapore bunkering publication Manifold Times, is as follows:

16 October

Registration and sign-in for participating guests
Meetings between Zhejiang Provincial and Zhoushan Municipal leaders with VIPs

17 October

Morning

Plenary Session of the Conference (Oriental Hall, Zhoushan International Conference Center)

Leader’s speech, guest keynote speech, signing of major projects

Discussion Topics [*17 October, 2pm to 5pm]

Global marine bunker development*
Location: Haitian Hall, Haizhongzhou International Hotel, Zhoushan
“Global Marine Fuel Development” Focus Topic Meeting (Haitian Hall, Haizhongzhou International Hotel, Zhoushan)

14:00-14:05 - Opening of the Meeting

14:05-14:15 - Speech by Leaders

14:15-14:30 - Announcement of "Top Ten Global Bunkering Ports" and "Top Ten Global Bunkering Companies"

14:30-14:40 - Announcement of Construction Work of Northeast Asia Bonded Marine Fuel Bunkering Hub

14:40-14:50 – Launch ceremony of Zhoushan "White-list" Bunker Barge Mass Flow Meter System Pilot Certification Programme

14:50-15:10 - Signing Ceremony

15:10-16:10 - Keynote speech

16:10-16:35 - Coffee break

16:35-17:05 - Roundtable forum (Topic: Facing green and low-carbon transformation in global shipping, how do marine fuels change in response to the trend?)

17:05-17:35 - Roundtable forum (Topic: The road to develop high-quality offshore fuel bunkering metering under the new developments)

17:35-17:40 - Moderator’s summary

Utilising financial innovation, futures and spot cooperation to promote the construction of a hub for the allocation of bulk commodity resources*
Location: Putuo Hall, Zhoushan International Conference Center

Open development of global shipping trade*
Location: Donghai Hall, Hilton Zhoushan

International iron ore trade development*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan

Development of China's new chemical materials industry during the “15th Five-Year Plan”*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan

Development of non-ferrous metal mining industry*
Location: Lianhua Ocean Hall, Hilton Zhoushan

16 and 17 October
International maritime law of the free trade port (zone)
Location: Fortune Hall, Zhoushan CaiFu Hotel

Photo credit: Zhoushan High-tech Zone Administrative Committee
Published: 11 October, 2024

Alternative Fuels

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

‘It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,’ says Vitol’s Head of Asia Mike Muller during a panel discussion.

Published

19 hours ago

October 11, 2024

Admin

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

Energy trader Vitol’s Head of Asia Mike Muller on Wednesday (9 October) said the company is anticipating being granted a LNG bunker licence in Singapore soon.

“It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,” he said.

Mike Muller made the announcement during the Viewing the Energy Transition Through the Lens panel discussion at the 23rd Singapore International Bunkering Conference (SIBCON).

“We expect to see growth in LNG use as a bunker fuel for at least another decade, and probably longer,” he added.

On the increasing uptake of biofuels, he said Vitol is seeing demand for biofuel blended bunkers in Singapore roughly doubling every year at the moment, heading for around 1 million mt this year and maybe 2 million mt next year.

“Demand for 100% biofuel from shipping customers is also starting to pick up as of this year and we have led the way in commissioning new IMO type 2 barges to fulfil this demand - indeed an important Asian customer of ours has taken three deliveries of B100 UCOME biofuel just in recent weeks here in Singapore,” Muller explained.

Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

The time charter agreement with Avenir is for one newbuild 20,000m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Photo credit: Vitol
Published: 11 October, 2024

Methanol

Methanol Institute: Expanding global capacity and strategic developments (Week 40, 30 Sep to 6 Oct 2024)

This week was dominated by the outcome of the IMO MEPC which considered proposals for mid-term policy measures capable of driving an energy transition in international shipping down to just three options.

Published

20 hours ago

October 11, 2024

Admin

The Methanol Institute, provides an exclusive weekly commentary on developments related to the adoption of methanol as a bunker fuel, including significant related events recorded during the week, for the readers of bunkering publication Manifold Times:

The news agenda this week was dominated by the outcome of the IMO Marine Environment Protection Committee (MEPC) which considered proposals for mid-term policy measures capable of driving an energy transition in international shipping down to just three options, with a likely greenhouse gas (GHG) reduction pathway selected next year.

A majority of IMO member states are now understood to be in favour of a levy on carbon emissions but the lack of urgency remains an issue. Observers recognised that support for such a mechanism should be optimistic based on the meeting’s outcome though no action should be expected before 2025.

Methanol marine fuel related developments for Week 39 of 2024:

CPG Bunkering Expands Mozambique Operations with New Tanker and Capacity Upgrade

Date: September 30, 2024

Key Points:

CPG Bunkering has expanded its capacity at the Port of Maputo in Mozambique by adding a new delivery vessel, the CPG Alma, under an extended agreement with the Maputo Port Development Company. The expansion allows for reliable at-berth supplies and more efficient service for increased bunker-only calls. Additionally, the company will evaluate the potential supply of alternative bunker fuels, such as biofuels, LNG, methanol, and ammonia, during the extension period to support future green fuel adoption.

ESL Shipping Emphasizes Urgency for New Fuels to Meet Decarbonization Goals

Date: October 1, 2024

Key Points:

ESL Shipping’s Managing Director, Matti-Mikael Koskinen, highlighted the urgent need for new fuel options to meet decarbonization targets, as discussed at the IMO MEPC82 meeting. ESL is committed to achieving net-zero emissions by 2040 and is exploring a range of alternative fuels including LNG, bio-gas, and methanol. The company’s approach varies based on vessel types and operational conditions, particularly in challenging ice-class routes off Finland. Koskinen stressed the importance of overcoming fuel availability and cost barriers to successfully transition to greener shipping solutions.

Vioneo to Use Green Methanol for Sustainable Plastics Production

Date: October 2, 2024

Key Points:

Vioneo, a new sister company to Maersk under AP Moller Holding, is set to produce sustainable chemicals and plastics using green methanol as a feedstock. The company will construct a 300,000 mt/year plant in Antwerp to manufacture polypropylene and polyethylene. This project marks a strategic expansion beyond methanol's use as a bunker fuel, leveraging green methanol for large-scale, fossil-free production of essential materials, reflecting Maersk's broader commitment to sustainability and innovation.

193 Alternative Fuel Ship Orders Placed in Q3, Led by LNG and Methanol

Date: October 3, 2024

Key Points:

According to the Ship & Bunker News Team, 193 new vessel orders including alternative propulsion were registered in the third quarter of 2024, with a majority focused on LNG and methanol. The container segment accounted for most of the orders, including 86 LNG-fueled and 39 methanol-fueled vessels. This growth, driven by the container and car carrier segments, highlights the industry's continued investment in alternative fuels to meet environmental regulations and future-proof fleet operations.

Peninsula to Boost Methanol Bunkering with Three New Tanker Charters from HTM

Date: October 4, 2024

Key Points:

Peninsula has entered into an agreement with Hercules Tanker Management (HTM) to charter three newly ordered 7,700 DWT methanol-capable chemical tankers, currently being built at the Jiangmen Hangtong Shipyard in China. The vessels, set for delivery in Q2 2025, will support the company's strategy to expand its alternative fuel bunkering services. This partnership enhances Peninsula’s capability to deliver biofuel blends and methanol, ensuring readiness for future green fuel demand.

IMO MEPC 82: DNV Highlights Progress on Net-Zero Framework Negotiations and Emission Control Areas

Date: October 7, 2024

Key Points:

The 82nd session of the IMO Marine Environment Protection Committee (MEPC 82) focused on advancing the development of a net-zero framework for the maritime industry. Delegates discussed strategies to achieve net-zero GHG emissions by 2050, including establishing a GHG fuel intensity standard, which would set clear emission reduction targets for vessels. The committee also considered a new GHG pricing mechanism to incentivize low-carbon fuel adoption.

Additionally, amendments to MARPOL Annex VI were adopted, designating new Emission Control Areas (ECAs) in the Norwegian Sea and Canadian Arctic, which will implement stricter emission regulations starting in 2026-2027. The session also addressed technical and operational measures to improve energy efficiency, reflecting the IMO's commitment to enhancing sustainability in shipping operations globally. DNV emphasized that while progress has been made, negotiations will continue to refine and finalize the proposed net-zero framework in upcoming sessions.

For more details, visit the full article here.

Photo credit: Methanol Institute
Published: 11 October, 2024