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OCI Global to deliver green methanol bunker fuel for Maersk boxship on maiden voyage

OCI is obtaining the approvals and permits required to commercially bunker methanol in several ports, including Port of Rotterdam on the ship’s voyage from South Korea this summer.

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OCI Global (OCI) on Monday (12 June) announced it is fuelling the first ever green methanol-powered container ship in a new partnership with A.P. Moller-Maersk. 

OCI will provide ISCC certified biomethanol to power the maiden voyage of Maersk's first dual-fuelled container ship.

“The journey demonstrates OCI's unique capacity to supply marine customers with end-to-end green methanol solutions in major global bunkering locations, and further supports green methanol as the leading choice today for decarbonising the marine sector, which is responsible for 3% of global GHG emissions,” OCI said in a statement. 

The vessel leaves South Korea for its maiden voyage this summer, sailing along one of the world's busiest shipping routes to Northern Europe via the Suez Canal. OCI is obtaining the approvals and permits required to commercially bunker methanol in several ports, including Port of Rotterdam on the ship's voyage, positioning OCI as the first commercial bunker operator of methanol in these regions.

This voyage is an important milestone in the expansion of OCI's renewable and low-carbon fuels business, a key pillar of OCI's sustainable growth strategy. As the maritime industry navigates increased regulation to accelerate decarbonisation, such as the FuelEU Maritime initiative, OCI anticipates incremental global demand for methanol at 4 million tons per year in the next five years, based on current orders from the marine sector.

OCI is focused on being the last mile operator of choice at strategic bunkering ports, leveraging partnerships with relevant authorities, terminal infrastructure partners, and bunker barge operators. In February, OCI announced its project with Unibarge to retrofit the first methanol powered bunker barge, to be deployed at the Port of Rotterdam.  

Through its OCI HyFuels brand, OCI is the largest green methanol producer globally. It has led the development of green methanol application in vehicle fuels, now placing up to 200,000 tons per annum equivalent and is growing its suite of low-carbon and green methanol products, including biomethanol, e-methanol, recycled carbon fuel (RCF) methanol, renewable natural gas, ethanol and bio-MTBE.

Ahmed El-Hoshy, CEO at OCI Global, said: “I'm delighted that we are partnering with Maersk to power the first ever green methanol voyage with OCI HyFuels green methanol. This marks another significant milestone in our global leadership in supplying and trading renewable and low carbon fuels to decarbonise energy-intensive industries.”

“We also appreciate the collaboration and leadership of our partners at each of the ports to facilitate this journey. With the maritime industry facing increasing regulatory scrutiny, its decarbonisation is urgent, and OCI is playing a crucial role in helping the sector meet its environmental goals through our existing methanol capabilities; helping us build our position in the marine and fuels markets to capitalise on the coming ammonia fuel demand.”

Bashir Lebada, CEO of OCI Methanol/HyFuels, said: “We are excited about this new phase of our methanol business. Marine has been the main buzz around methanol for several years, so to secure the first real green sale and voyage is testament to our team's hard work and further reinforces OCI HyFuels as the only large-scale green methanol solution for road and bunker.”

“We welcome our partnership with Maersk and their leadership in decarbonising the maritime sector; their early focus on methanol and conviction to order vessels has led us to where we are today. This also highlights our distribution system and last mile capabilities where we will continue to leverage our road fuel logistics and fuel blending system, and add to our green bunker barge fleet as demand grows.”

Emma Mazhari, Head of Energy Markets at A.P. Moller – Maersk, said: “We would like to thank OCI Global for showing great leadership and for a good collaboration on fuelling the maiden voyage for our landmark vessel. We are grateful for the way OCI Global has committed to help A.P. Moller - Maersk deliver valuable services to our customers.”

“Together, as trusted partners, we are driving a much-needed transition in a heavy-pollution industry. Because of the work by companies like OCI Global, that transition can hopefully be accelerated in the years to come.”

Related: EC President to be godmother of Maersk green methanol powered vessel
Related: Maersk to hold festivities welcoming world’s first green methanol-powered boxship in September
Related: Maersk unveils design of its new methanol dual fuel container ship
Related: Maersk makes first green methanol investment of 2023 in tech start-up C1
Related: Maersk to operate world’s first methanol fuelled, carbon neutral feeder vessel by 2023

 

Photo credit: A.P. Moller – Maersk
Published: 13 June, 2023

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Methanol

Marine Fuels 360: Methanol presents easiest path towards maritime decarbonisation, says DNV

Captain Singh was confident the bunkering infrastructure in Singapore will be ready to welcome methanol-fuelled vessels due to the coordinated efforts between various agencies.

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Capt Satinder

The use of methanol as a bunker fuel presents the least path of resistance towards maritime decarbonisation, believes the Principal Consultant, Head, Research and Development, Maritime Advisory, SE Asia, Pacific, and India at classification society DNV.

Captain Satinder Singh Virdi was speaking amongst panellists in the Methanol Panel session at Marine Fuels 360 on Tuesday (28 November) when he offered an opinion about reasons behind the increasing awareness of methanol as a marine fuel.

“The ease of adopting methanol is perhaps one of the reasons. The product exists as a liquid at ambient temperature and has been carried on vessels for the last 80 years, so it is not something new,” he stated.

“What is new is we're going to use methanol as a bunker fuel. Ease of adoption, ESG compliance, as well as getting closer to decarbonisation goals are the drivers for shipowners adopting methanol.”

According to Captain Singh, the trend for methanol-fuelled newbuildings have continued in October where DNV’s Alternative Fuels Insight (AFI) platform recorded 230 vessels on order where 156 comprises of containerships.

“The trend started when Maersk increased their newbuild order of methanol-fuelled vessels; before that it was mostly LNG as an alternate fuel,” he said.

Captain Singh was confident the bunkering infrastructure in Singapore will be ready to welcome methanol-fuelled vessels due to the coordinated efforts between the Singapore Shipping Association, Maritime and Port Authority of Singapore, Global Centre for Maritime Decarbonisation, and other organisations.

“We are all working together to support Singapore’s future maritime operations. Singapore is an international maritime centre, and we want to establish ourselves as the leading maritime city,” he explained.

“I would call this a cohesive action by all relevant partners, such as shipowners, charterers, classification societies, ship managers, bunker testing firms, mass flow meter manufacturers, bunkering companies, and more.

“It is important for Singapore to be seen as a fair supporter of bunkering in terms of reliability and reputation, and if things go wrong actions are taken very strictly to ensure transparency and quality. So, in that way I am satisfied to say that ‘yes’ we have what it takes to make methanol bunkering happen.”

Related: DNV: Methanol-fuelled order trend continues, with first ammonia DF newbuilding contracts recorded in Oct
Related: Maersk invests USD 700.3 million for additional four methanol-fuelled container newbuilds

Other related: Singapore: Equatorial Marine Fuel builds four “new generation” methanol-ready bunker tankers
Other related: MPA: Due diligence carried out prior to recent Singapore methanol bunkering pilot
Other related: VPS completes quantity survey on Singapore’s first methanol bunkering op
Other related: The Methanol Institute: Singapore takes first-mover advantage in Asia with methanol bunkering pilot
Other related: Singapore bunkering sector enters milestone with first methanol marine refuelling op
Other related: Singapore gets ready for its first methanol bunkering this week after one year preparation
Other related: The Methanol Institute: Singapore takes first-mover advantage in Asia with methanol bunkering pilot

Photo credit: Informa
Published: 6 November 2023

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Ammonia

Höegh Autoliners, Sumitomo to collaborate on ammonia bunker fuel supply for PCTCs in Singapore, Jacksonville

Duo will embark on a comprehensive evaluation of the compatibility between Höegh Autoliners PCTC newbuilds and ammonia bunkering facilities at the identified bunker ports.

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Höegh Autoliners, Sumitomo to collaborate on ammonia bunker fuel supply for PCTCs in Singapore, Jacksonville

Norway-based pure Car and Truck Carriers (PCTCs) vessel owner and operator Höegh Autoliners on Tuesday (5 December) said it has agreed with Sumitomo Corporation to look into the supply of clean ammonia as a bunker fuel at the ports of Singapore and Jacksonville, USA from 2027 onwards.

The two companies have formalised their commitment through a Letter of Intent to collaborate on the supply and delivery of clean ammonia as a next-generation sustainable maritime fuel for Höegh Autoliners’ upcoming Aurora Class PCTC vessels. 

The twelve vessels are set to become the largest and most eco-friendly car carriers ever built and they will have the capability to run on zero-carbon ammonia or carbon neutral methanol. 

“The Letter of Intent symbolises a remarkable step in the realisation and development of the production and consumption of clean maritime fuels. The collaboration hopes to stimulate the upscaling of the supply and demand of clean ammonia for maritime usage,” Höegh Autoliners said in a statement. 

Both companies view clean ammonia as a promising future fuel for the maritime industry, offering substantial potential in addressing the challenges associated with greenhouse gas emissions in global shipping. 

To support this vision, both entities have launched a range of initiatives throughout the ammonia value chain, with a primary focus on making clean ammonia a viable choice for maritime fuel and thereby achieving significant reductions in emissions from the global shipping sector.

Moving forward, the companies will embark on a comprehensive evaluation of the compatibility between the PCTC vessels and the ammonia bunkering facilities at the identified bunker ports. 

They endeavour to make necessary adjustments to specifications for both “shore-to-ship” and “ship-to-ship” bunkering operations and undertake safety assessments to establish standardised operational protocols and regulations in close coordination with pertinent government agencies.

Photo credit: Höegh Autoliners
Published: 6 December, 2023

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Alternative Fuels

CENIT and Hinicio to explore feasibility of zero-carbon bunkers in Colombia

Mission is to explore the feasibility of producing, storing, supplying, and exporting zero-carbon bunker fuels at strategic port locations in Colombia, says centre.

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Luis Desiro on Unsplash

The Centre for Innovation in Transport (CENIT) on Tuesday (5 December) said it was teaming up with Hinicio, a strategy consulting firm focused on sustainable energy and mobility, for a project funded by The World Bank in Colombia.

CENIT said their mission was to explore the feasibility of producing, storing, supplying, and exporting zero-carbon bunker fuels at strategic port locations in Colombia.

“The shipping industry is poised to become a major demand centre for zero-carbon fuels, particularly green hydrogen-based options like green ammonia and green methanol,” CENIT said in a social media post. 

“And it will play a pivotal role in transporting these zero-carbon fuels from emerging production hubs in Latin America to high-demand centres in Europe and East Asia.”

“This project takes us a step closer to decarbonising ports and fostering a sustainable future for maritime transportation.”

Photo credit: Luis Desiro on Unsplash
Published: 6 December, 2023

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