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OCI N.V. to expand Port of Rotterdam ammonia import terminal to meet bunker demand

Terminal is strategically located to facilitate emerging ammonia demand for bunkering to vessels and to act as a hub for hydrogen imported from regions such as the Middle East.

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Nitrogen products producer and distributor OCI N.V. (OCI) on Wednesday (15 June) said it has made a final investment decision (FID) for the first phase of its ammonia import terminal expansion project in the Port of Rotterdam in the Netherlands. 

The terminal is strategically located to facilitate emerging ammonia demand for bunkering to ocean-going vessels, and to act as a hub for hydrogen imported in the form of ammonia from regions with ample natural gas and renewable resources such as the Middle East & North Africa to meet Europe’s expected future hydrogen deficit.

The expansion will be developed under a staged investment approach, with an initial increase in throughput capacity from the current c.400 ktpa to up to 1.2 million metric tons per year to be achieved through low-cost upgrades to OCI’s existing infrastructure. Total investment cost for the first phase is estimated to be below USD 20 million, with completion expected in 2023.

For the second phase, OCI has completed a basic engineering package for the construction of a new world-scale ammonia tank at the terminal, which, along with a scale-up in jetty infrastructure, will allow a potential increase in throughput to above 3 million tons per annum. OCI plans to commence permitting activities this year, to be in a position to rapidly increase throughput capacity as demand for clean ammonia develops in the medium-term.

Ahmed El-Hoshy, Chief Executive Officer of OCI NV, said: “As a global leader in ammonia production, trading and distribution, this project is a very logical step to leverage our incumbency status in Rotterdam to enhance our ammonia value chain: never has this been as vital as it is now. We are pleased to announce this milestone, enhancing a key ammonia import and future bunkering hub and aggregation point for low-carbon ammonia at a world-scale port, which will serve as an important avenue for clean ammonia imports from our global facilities and addresses current and future European hydrogen deficit needs.

“This vital piece of the global value chain will provide essential ammonia to keep downstream fertilizer plants running today in this volatile global natural gas environment, and in the future will also offer low carbon ammonia to feed the Dutch and wider European hydrogen needs in power generation, marine fuels, and broader industrial value chains, thereby reducing dependence on fossil fuels.”

The Port of Rotterdam is the largest seaport in Europe with approximately 30,000 visiting sea-going and 100,000 inland vessels per year. It is one of four major global and Europe’s largest bunkering port, supplying around 11 million m³ of marine bunker fuels per year.

Allard Castelein, CEO Port of Rotterdam, said: “OCI’s decision to invest in tripling its ammonia import capacity in Rotterdam perfectly fits our plans. Our ambition is to be a carbon neutral port in 2050. This regards not only the industry in the port area, but also shipping. Ammonia is not only a hydrogen carrier and a feedstock for the chemical industry, it’s also an important renewable fuel for the shipping sector. To be able to bunker ammonia, steps such as OCI’s need to be implemented to increase the base. As sailing on ammonia is something new, we’re working hard together with the business community and public authorities to have the regulations and safe handling procedures for ammonia bunkering operations in place in time.”

 

Photo credit: Port of Rotterdam
Published: 16 June, 2022

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Bunker Fuel

SMW 2024: Singapore is preparing port for multi-fuel future, says Transport Minister.

‘Our industry has brought in new bunker tankers capable of bunkering higher blends of biofuel and methanol, paving the way for greater emissions reduction for vessels,’ says Chee Hong Tat.

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SMW 2024: Singapore is preparing port for a multi-fuel future, says Transport Minister.

Singapore has moved decisively to ensure energy and fuel resilience as international shipping looks to alternative fuels to meet global decarbonisation targets, said Singapore’s Minister for Transport Mr Chee Hong Tat on Monday (15 April).

In his speech at the Singapore Maritime Week (SMW) 2024 opening ceremony, he said Singapore is preparing its port for a multi-fuel future.

“Our industry has brought in new bunker tankers capable of bunkering higher blends of biofuel and methanol, paving the way for greater emissions reduction for vessels,” he said.

“MPA has also issued Expressions of Interest (EOI) for the alternative fuels ammonia and methanol over this past year.

“For our ammonia EOI, we have shortlisted six consortiums, and are studying their comprehensive proposals for the supply of ammonia for bunkering and power generation in Singapore.”

Chee added reliability and resilience also mean that Singapore upholds the highest standards for safety, efficiency, and quality. 

“Enterprise Singapore, through the Singapore Standards Council, has been working closely with industry partners to introduce national standards to support the digitalisation of bunkering supply chain documentation, as well as on methanol and ammonia bunkering.”

“As a major maritime and bunkering hub, Singapore is committed to continue serving as a trusted node for international shipping.”

Chee said this when elaborating on Singapore’s focus to grow the republic as a hub for reliable and resilient maritime operations, one of three important areas the republic will prioritise on growing its maritime sector. 

The other two areas are to grow Maritime Singapore as a hub for maritime innovation and as a hub for maritime talent development.

“Looking ahead, we expect some turbulence along the way, but we are confident that the global maritime industry will continue to grow,” Chee said.

“And Singapore as a hub port and International Maritime Centre can benefit from this growth and the opportunities it brings, including in emerging areas like digitalisation and decarbonisation.”

However, Chee warned Singapore shouldn’t take its success for granted and to continue improving productivity and competitiveness while staying relevant to changing requirements to be able to meet the needs of local and international stakeholders. 

“But we must not rest on our laurels, or make the mistake of thinking that these positive outcomes will happen on auto-pilot. A rising tide can indeed lift all boats, but the boat and its crew can only benefit if they are well-prepared when the water level rises,” he said.

Related: SMW2024: 18th Singapore Maritime Week opens with ‘Actions meet Ambition’ theme
Related: SMW 2024: MPA to set up facility for maritime workforce to train in handling new bunker fuels
Related: SMW 2024: Singapore-Rotterdam Green and Digital Shipping Corridor partners to implement first-mover pilot projects
RelatedSMW 2023: EOI for ammonia power generation and bunkering closing by 30 April
Related: Singapore gets its first dedicated methanol bunkering tanker “MT MAPLE”
Related: Singapore: Vitol Bunkers takes delivery of specialised biofuel bunker barge “Marine Future”

 

Photo credit: Maritime and Port Authority of Singapore
Published: 16 April 2024

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Biofuel

Banle Energy arranges B24 bunkering services for “YM Utility” in Yantian

Transaction supports the first B24 biofuel supply in Shenzhen and Yang Ming’s inaugural B24 biofuel bunkering supply in China, says firm.

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Banle Energy arranges B24 bunkering services for “YM Utility” in Yantian

Banle Energy International Limited, a subsidiary of CBL International Limited, on Monday (15 April) announced the arrangement of B24 biofuel bunkering services for Yang Ming's vessel YM Utility at a port in Yantian, Shenzhen on 14 April.

“By providing Yang Ming with our B24 biofuel bunkering services, this transaction supports the first B24 biofuel supply in Shenzhen and Yang Ming's inaugural B24 biofuel bunkering supply in China,” the firm in a social media post. 

“As a company actively promoting the use of biofuels, we are making a significant contribution to the International Maritime Organization's (IMO) goal of reducing greenhouse gas emissions (GHG) from international shipping.”

“The B24 biofuel blend, as indicated by a study, is projected to reduce approximately 20% of Greenhouse Gas (GHG) emissions when compared with conventional fuel oil.”

As the firm focuses on expanding its operations in Europe, the firm added it will continue to forge strategic partnerships and explore new opportunities to provide efficient and reliable solutions.

 

Photo credit: Banle Energy International Limited
Published: 16 April 2024

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Methanol

Singapore bunker tanker to be equipped with MAN ES DF gensets

MAN Energy Solutions received an order for three MAN 6L21/31DF-M (Dual Fuel-Methanol) GenSets capable of running on methanol for a 7,990 dwt IMO Type II chemical bunker tanker.

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Singapore bunker tanker to be equipped with MAN ES DF gensets

MAN Energy Solutions (MAN ES) on Monday (15 April) said it has received an order for three MAN 6L21/31DF-M (Dual Fuel-Methanol) GenSets capable of running on methanol in connection with the construction of a 7,990 dwt IMO Type II chemical bunker tanker.

The newbuild will operate at the port of Singapore under charter to deliver marine fuels. The port itself is reported as laying plans for the steady supply of methanol from 2025 onwards in order to meet future, anticipated bunkering requirements for methanol-fuelled vessels. 

The dual-fuel engines will form part of a diesel-electric propulsion system on board the vessel with electrical motors driving twin fixed-pitch propellers via gearboxes; an onboard battery-storage system will optimise the use of the dual-fuelled generators. 

MAN Energy Solutions’ licensee, CMP – an engine-manufacturing division of Chinese State Shipbuilding Corporation (CSSC) – will build the engines in China and the vessel is scheduled for delivery during Q4, 2025.

Bjarne Foldager – Country Manager, Denmark – MAN Energy Solutions, said: “Seeing our trusted MAN L21/31 GenSets go into these ships as a methanol-fuelled version shows that maritime decarbonisation is a prominent consideration for shipowners in all vessel segments and sizes.”

“It also clearly illustrates, regardless of the market one serves as shipowner, that our broad, dual-fuel portfolio enables everyone to take part in the green transition.”

Thomas S. Hansen – Head of Sales and Promotion – MAN Energy Solutions, said: “The MAN L21/31 engine is well-established in the market having racked up some 2,750 sales.”

“The reliability of its cost-effective, port fuel-injection concept now prominently positions the 21/31DF-M as the preferred, medium-speed, small-bore engine for GenSet and diesel-electric propulsion solutions, while also meeting market demands to balance both CAPEX and OPEX.”

“With the shipping market currently experiencing an increased interest in methanol as marine fuel, and orders for methanol-fuelled ships steadily growing as part of many companies’ decarbonisation strategy, we feel that the introduction of this dual-fuel engine is timely.”

 

Photo credit: MAN Energy Solutions
Published: 16 April 2024

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