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Pacific Environment commends A.P. Møller-Maersk for supporting US Clean Shipping Act

‘Clear market signal must be sent to industry that zero-emissions shipping must replace fossil fuels and we call on other carriers to follow Maersk’s lead,’ says Antonio Santos of Pacific Environment.

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Environmental group Pacific Environment on Thursday (22 September) has commended A.P. Møller-Maersk for supporting the Clean Shipping Act that was introduced by US Congressman Alan Lowenthal in July.

Manifold Times previously reported Lowenthal, who represents the Port of Long Beach – one of the nation’s busiest cargo ports– introduced the Clean Shipping Act of 2022, a legislation aimed at zeroing out pollution from all ocean shipping companies that do business with the U.S.

The bill sets carbon intensity standards for fuels used by ships and requirements to eliminate in-port ship emissions by 2030.

The bill is cosponsored by Congresswoman Nanette Barragán, who represents the Port of Los Angeles. With the neighbouring Long Beach port, represented by Congressman Lowenthal, the two ports comprise the busiest container port complex in the Western Hemisphere.

“Pacific Environment applauds Maersk for supporting the Clean Shipping Act. Zero-emission fuels and vessels need to be deployed at scale to decarbonise shipping this decade and reduce outsized health burdens to portside communities,” said Antonio Santos, Federal Climate Policy Director at Pacific Environment.

“Bold policies like Congressman Lowenthal’s legislation will initiate a shift in GHG reduction strategies, providing regulatory certainty and minimising the risk for manufacturers and suppliers. A clear market signal must be sent to industry that zero-emissions shipping must replace fossil fuels, and we call on other carriers to follow Maersk’s lead.”

On Tuesday (20 September), Lowenthal announced that A.P. Møller-Maersk, one of the largest container shipping lines in the world and a major terminal operator at the Port of Los Angeles, has given its support to his legislation and published a letter sent by A.P. Møller-Maersk CEO, Soren Skou, addressed to the congressman and Barragán.

“A.P. Møller-Maersk has worked on the decarbonisation of the shipping sector for over a decade and we are committed to be net zero across our business and value chain by 2040 with 100% green solutions for our customers,” A.P. Møller-Maersk CEO, Soren Skou said.

“We have also committed for all our new vessels to be capable of sailing on renewable fuels. This led us to order the first 12 large ocean-going container vessels capable of being operated on green methanol, to be delivered in 2024-2025. However, in order to demonstrate and accelerate the transition, clear signals from leading nations such as the U.S. and regions such as the E.U. are needed, even if such measures are inherently regional in their reach.”

“Now is the time for action and we urge the United States Congress to pass this legislation to achieve a 45% decrease on carbon dioxide equivalent reductions by 2030,” A.P. Møller-Maersk Vice President of U.S. Government Relations, Doug Morgante said.

“The most significant challenge is the availability and cost competitiveness of the green fuels necessary to reach our targets. It is fundamental that leading governments, such as the U.S., and industry work together to accomplish long-term solutions.”

“We don’t have to choose between a healthy shipping industry and a healthy climate. I applaud Maersk for taking this stand and acknowledging we are facing a tipping point in the climate crisis,” Congressman Lowenthal said. “No emissions sources can go overlooked. My Clean Shipping Act is the right policy for the future of our planet, for the health of our communities, and ultimately for the resiliency of goods movement.”

“Shipping emissions are a large and growing source of pollution that worsen climate change and harm air quality in port communities like Los Angeles,” Congresswoman Barragán said. “We need leadership from the federal government and the private sector to transition as quickly as possible to a zero-emissions shipping industry. Maersk’s support for the Clean Shipping Act is exactly the kind of leadership we need. It shows we can have a thriving port economy without compromising public health or our climate.”

Note: The full text of the Maersk letter can be read here and the full text of the Clean Shipping Act can be read here

RelatedUS Congressman introduces Bill to reduce pollution in maritime shipping industry

 

Photo credit: A.P. Møller – Mærsk
Published: 23 September 2022

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Alternative Fuels

SMW 2024: Yinson GreenTech partners with EPS on electric vessel trials

YGT’s marine electrification business, marinEV, and EPS will perform trials involving the first cargo delivery with an electric vessel and the first crew transfer with an electric vessel in Singapore.

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SMW 2024: Yinson GreenTech and EPS forge alliance on electric vessel trials

Yinson GreenTech (YGT), a leading green technology solutions provider, has signed a Letter of Intent (LOI) with Eastern Pacific Shipping (EPS), a global leader in maritime transportation, during Singapore Maritime Week 2024, both parties said in a joint statement on Thursday (18 April). 

This collaboration, spearheaded by YGT’s marine electrification business, marinEV, marks a significant step towards cleaner and more sustainable maritime operations in Singapore, with the following key milestones on the horizon:

Electric vessel deployments

  • First cargo delivery with an electric vessel in the Port of Singapore: marinEV and EPS aim to be at the forefront of maritime history by jointly facilitating the first cargo delivery using an electric vessel within the Port of Singapore. This aligns with both companies’ commitment to environmental responsibility and demonstrates their dedication to creating a net zero world.
  • First crew transfer with an electric vessel in Singapore: Recognising the critical role of crew transfers in maritime operations, marinEV and EPS will collaborate on the first crew transfer conducted by an electric vessel in Singapore. This trial will provide valuable data on the feasibility, efficiency, and safety of electric vessels for crew transportation, paving the way for wider industry adoption.

SMW 2024: Yinson GreenTech and EPS forge alliance on electric vessel trials

The Hydromover and Lake Herman

Building upon their commitment to sustainability, marinEV will enter into a collaborative agreement with EPS. This partnership aims to integrate electric vessels into last-mile delivery operations, significantly reducing Scope 3 emissions and contributing to a cleaner shipping industry. By jointly defining ambitious emission reduction goals, marinEV and EPS will work together to create a more sustainable future for maritime transportation.

“At Yinson GreenTech, we believe that collaboration is key to unlocking a cleaner future for our oceans. Our partnership with Eastern Pacific Shipping on these groundbreaking electric vessel deployments in Singapore signifies a major leap forward,” said Jan-Viggo Johansen, Managing Director of marinEV. 

“Together, we are not only making history but also paving the way for a future where clean and efficient transportation solutions become the norm. This is an exciting moment for us, and we are committed to working closely with EPS, our existing partners and other industry leaders to achieve a truly sustainable maritime landscape.

“It is heartening to see like-minded partners in the industry adopt the ‘act now’ approach like us, taking action and exploring innovative solutions on all fronts,” said Cyril Ducau, Chief Executive Officer of EPS.

“This collaboration with Yinson GreenTech not only offers a greener transportation alternative, it also builds on the industry’s collective commitment to accelerate the decarbonisation of shipping. We don’t do things because they are easy. We do it because they are difficult so that we leave no stones unturned in our efforts to decarbonise.”

Related: Yinson GreenTech all-electric crew transfer vessel to undergo sea trials in Singapore

 

Photo credit: Maritime and Port Authority of Singapore
Published: 19 April 2024

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Bunker Fuel

SMW 2024: Maritime International Advisory Panel discusses decarbonisation, green financing, digitalisation

Panel noted that financial institutions were willing to provide lending for suitable projects to support maritime decarbonisation with sufficient assurance that the default risks were managed.

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SMW 2024: Maritime International Advisory Panel discusses decarbonisation, green financing, digitalisation

The Maritime International Advisory Panel (IAP) held its third annual meeting on 16 April 2024, during the Singapore Maritime Week 2024. 

This year, the Maritime IAP held in-depth discussions on the key developments in the maritime sector, including decarbonisation, green financing, digitalisation and cybersecurity. 

Members of the panel who were present included Hiroaki Sakashita, President and CEO, ClassNK, Stephen Fewster, Managing Director, Global Head, Shipping Finance, ING Bank, Nick Brown, CEO, Lloyd’s Register, and Jonathan Wright, Global Managing Partner, Global Finance and Supply Chain Transformation Service Line Leader, IBM.

Established in 2022 by the Ministry of Transport (MOT) and the Maritime and Port Authority of Singapore (MPA), the Maritime IAP aims to seek international perspectives on key long-term trends and developments that will shape the maritime industry. 

It comprises global leaders from the maritime sector, adjacent industries and academia, and is chaired by Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance. Local industry and union leaders also joined the meeting to share their perspectives.

IAP comprises global leaders from the maritime sector, adjacent industries and academia, and is chaired by Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance.

IAP comprises global leaders from the maritime sector, adjacent industries and academia, and is chaired by Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance.

Key Trends and Opportunities for the Maritime Sector

The Maritime IAP highlighted that despite geopolitical uncertainties and supply chain shifts, there were significant opportunities for the global maritime sector in the following areas:

  • Accelerating the green transition towards a low- and zero-carbon future, supported by important enablers such as financing for green shipping;
  • Deepening the utilisation of technology and digitalisation while strengthening cyber resilience; and
  • Training and re-skilling the maritime workforce to take on the new job opportunities of the future.

The Maritime IAP emphasised that Singapore plays an important role in facilitating global trade flows, supporting global maritime decarbonisation, and advancing maritime digitalisation and cyber-resilience. 

Singapore’s position as a trusted and established maritime eco-system could catalyse green financing solutions, unlock the benefits of deeper utilisation of technology and data, and position it as a training hub to develop the skills needed by the future maritime workforce.

Strengthening Maritime Ecosystem Amid Global Shifts and Green Transition

Against the backdrop of global uncertainties, the Maritime IAP highlighted that Singapore could be an important trade and maritime intermediary, given its status as a neutral, trusted, and leading maritime hub. With growing trade to emerging regions as trade flows shifted, the panel believed Singapore would be an important conduit for new trades going forward. The panel further suggested for Singapore to become a trusted maritime technology hub for the development, installation, and accreditation of critical technologies, especially for those fitted onboard ships.

The Maritime IAP noted that amidst the ongoing green transition, there would be competing demands for various low- or zero-carbon fuels (e.g. hydrogen, ammonia, methanol) from other sectors.

The Maritime IAP highlighted the need to draw on a wide range of green financing instruments and investments to catalyse change, address hurdles and accelerate the sector’s green transition. 

The panel also noted that financial institutions were willing to provide lending for suitable projects to support maritime decarbonisation with sufficient assurance that the default risks were managed. To address the financing needs of the sector, the panel suggested for maritime stakeholders to pool their needs, while demand aggregation would help smaller companies gain better access to suitable solutions and financing, and also allow financial institutions to better determine and manage the risks involved.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 19 April 2024

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LNG Bunkering

GLBP submits permit applications to build and operate Galveston LNG bunker terminal

Small scale natural gas liquefaction facility will be the region’s first dedicated LNG bunker terminal to provide clean LNG as bunker fuel.

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Galveston LNG Bunker Port

Galveston LNG Bunker Port (GLBP) recently announced that it filed applications with the United States Army Corps of Engineers (USACE) seeking authorization to site, construct and operate the proposed GLBP small scale natural gas liquefaction facility on Shoal Point in Texas City, Texas, in the heart of the Galveston Bay/Greater Houston port complex. 

The GLBP project will be the region’s first dedicated LNG bunker terminal to provide clean LNG as marine fuel.

Galveston LNG Bunker Port has filed key regulatory applications with relevant government agencies, including the US Army Corps of Engineers (USACE) for the Clean Water Act and Rivers & Harbors Act, Texas Railroad Commission (TRRC) for the Texas Clean Water Act (CWA) Section 401 Water Quality Certification, and United States Coast Guard (USCG) for Waterway Suitability Assessment (WSA).

The USACE application for the proposed project includes two natural gas liquefaction trains capable of producing approximately 600,000 gallons per day of LNG; two 3-million-gallon full containment LNG storage tanks; natural gas liquids and refrigerant storage; feed gas pre-treatment facilities; a bunker vessel loading berth and associated marine and loading facilities.

“The Galveston LNG Bunker Port project continues to meet its milestones, and we are very excited to announce that the necessary permitting applications have been submitted,” said Shaun Davison, Chief Development Officer of Pilot LNG. 

“We are confident that we will meet the rigorous requirements of State & Local permitting authorities to ensure that the project is delivered on-time and will meet the ever-growing demand for clean fuel supply in the Galveston Bay, and US Gulf Coast region by the end of 2026.”

Pilot LNG and Seapath Group signed a project development agreement in September of 2023 that provides a framework for the development, technical design, permitting and marketing of the proposed liquefaction project, which is estimated to come online in late 2026. 

The global maritime industry is increasingly adopting LNG as a marine fuel to significantly reduce emissions and meet tightening regulations, including IMO 2020, which came into effect January 1st, 2020.

Joshua Lubarsky, President of Seapath Group, said: “Our experience in developing, building and operating energy infrastructure will help us with this much-needed facility.” Lubarsky continues “This facility is a critical investment into the resilience of the United States’ maritime infrastructure, and upon construction will immediately provide positive environmental and economic impacts in Texas City, Galveston Bay, and the US Gulf Coast.”

Ongoing development of the project is subject to a number of risks and uncertainties. The final investment decision to proceed with construction is contingent upon completing required commercial agreements, acquiring all necessary permits and approvals, and securing financing commitments.

Related: Galveston LNG Bunker Port secures site in Texas for proposed LNG bunkering facility
Related: Seapath, Pilot LNG launch JV to develop dedicated LNG bunkering facility in US Gulf Coast
Related: Houston: Pilot LNG announces regulatory filing for Galveston LNG Bunker Port
Related: Pilot LNG submits documentation to USCG for proposed LNG Bunker Port at Galveston

Related: Pilot LNG awards Galveston LNG Bunker Port FEED contract to Wison Offshore & Marine

 

Photo credit: Galveston LNG Bunker Port
Published: 19 April 2024

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