Alternative Fuels

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.

Published

2 years ago

September 23, 2022

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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.

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

LNG Bunkering

BV VeriFuel participates in first LNG bunkering operation in Shanghai

VeriFuel, Bureau Veritas’ Marine Fuel Services programme designed to facilitate future developments of the marine fuel industry, successfully participated in its first LNG bunkering operation in Shanghai.

Published

17 hours ago

September 10, 2024

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BV VeriFuel participates in first LNG bunkering operation in Shanghai

VeriFuel, Bureau Veritas' Marine Fuel Services programme designed to facilitate the future developments of the marine fuel industry, last week celebrated a milestone in LNG bunkering in Shanghai.

VeriFuel successfully participated in its first LNG bunkering operation about two weeks ago in Shanghai.

“This marks a significant step forward as we expand our service offerings to meet the growing demand for sustainable fuel solutions,” it said in a social media post.

“With more deliveries already on the way, our new service line is ready to support your LNG bunkering needs. We look forward to partnering with you on this exciting journey towards a more sustainable future.”

According to Bureau Veritas, VeriFuel provides the latest technology in order to monitor global marine fuel activities.

In 50 countries, VeriFuel provides the inspection services that are performed by in-house bunker surveyors based on uniform procedures and reporting.

Photo credit: VeriFuel
Published: 10 September, 2024

Methanol

Methanex to acquire OCI Global international methanol business

Transaction includes OCI’s interest in two methanol facilities in Beaumont, Texas, a low-carbon methanol production and marketing business and a currently idled methanol facility in Netherlands.

Published

17 hours ago

September 10, 2024

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Methanex to acquire OCI Global international methanol business

Methanex Corporation (Methanex) on Sunday (8 September) announced that it has entered into a definitive agreement to acquire OCI Global’s (OCI) international methanol business for USD 2.05 billion.

The transaction includes OCI’s interest in two world-scale methanol facilities in Beaumont, Texas, one of which also produces ammonia. The transaction also includes a low-carbon methanol production and marketing business and a currently idled methanol facility in the Netherlands.

“This is a unique opportunity to create value by acquiring two highly attractive North American methanol assets that will further strengthen our global production base and we expect it will be immediately accretive to free cash flow per share,” said Rich Sumner, President and Chief Executive Officer of Methanex.

“The Beaumont plants benefit from access to North America’s abundant and favourably-priced supply of natural gas feedstock, and are expected to increase our global methanol production by over 20 percent.”

“We believe the transaction will provide significant long-term value to Methanex shareholders while aligning with our strategic objectives of industry leadership, operational excellence, and financial resiliency,” said Mr. Sumner.

“From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing.”

Nassef Sawiris, Executive Chairman of OCI, added, “We are pleased with the opportunity to achieve a significant ownership position and are highly confident in Methanex’s ability to create enduring value for shareholders. As the global leader committed to safety and operational excellence, we identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023.”

As part of the transaction, Methanex will acquire the following:

A methanol facility in Beaumont, Texas with an annual production capacity of 910,000 tonnes of methanol and 340,000 tonnes of ammonia. This plant was restarted in 2011 and since that time the plant has been upgraded with USD 800 million of capital for full site refurbishment and debottlenecking.
A 50 percent interest in a second methanol facility also in Beaumont, Texas, operated by the joint venture Natgasoline LLC (Natgasoline). The Natgasoline plant was commissioned in 2018 and has an annual capacity of 1.7 million tonnes of methanol, of which Methanex’s share will be 850,000 tonnes.
OCI HyFuels, which produces low-carbon methanol and sells industry-leading volumes with trading and distribution capabilities for renewable natural gas (RNG). With nine years of experience in the low-carbon methanol business and with an array of blue-chip customers, this will enhance Methanex’s existing Low Carbon Solutions function with additional expertise in this developing segment.
A methanol facility in Delfzijl, Netherlands with an annual capacity to produce 1 million tonnes of methanol. This facility is not currently in production due to unfavourable pricing for natural gas feedstock.

Closing of the transaction is expected in the first half of 2025. The transaction has been approved by the boards of directors of both companies and is subject to receipt of certain regulatory approvals and other closing conditions including TSX approval for the issuance of Methanex shares to OCI.

The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction.

Photo credit: OCI Global
Published: 10 September, 2024

Alternative Fuels

Corvus Energy gas-safe marine fuel cell system receives type approval by DNV

Firm said the system is the first Fuel Cell System designed to be inherently gas-safe, making it the safest fuel cell system in the market.

Published

17 hours ago

September 10, 2024

Admin

Corvus Energy gas-safe marine fuel cell system receives type approval by DNV

Corvus Energy, supplier of energy storage systems (ESS) for maritime applications, on Wednesday (4 September) announced that the Corvus Pelican Fuel Cell System has received Type Approval from classification society DNV.

The system, which was developed through the three-year-long H2NOR project, is the first Fuel Cell System (FCS) designed to be inherently gas-safe, making it the safest fuel cell system in the market.

Corvus Energy said receiving type approval from DNV confirmed that the Corvus Pelican Fuel Cell System meets the most stringent performance and safety standards required by the maritime industry.

Olaf Drews, Head of Engines & Pressurized Equipment Maritime, said: “It is a special fuel cell system, because the Pelican uses nitrogen for inerting of the fuel cell space.”

“It is the first fuel cell system that uses this technology and this brings it to a very preferred safety level. This is a milestone, and we look forward to the first ship project.”

Despite technology improvements and advancements in battery electric vessels, most vessels cannot achieve zero-emission operations for extended periods of time using batteries alone. For vessels on longer routes and vessels that are unable to charge often enough, we need to add clean fuel and fuel cells to enable extended zero-emission capabilities.

CEO of Corvus Energy, Fredrik Witte, said: “Toyota’s unsurpassed knowledge in developing high-quality and efficient fuel cells, in addition to the strong collaboration and high level of maritime experience among the partners in this development project, has been key.”

“This is a milestone for net zero shipping. We now have a high-quality range extender to add to our existing ESS portfolio with the scalability and the safety needed to be a real driver in the future of marine decarbonization.”

The first Corvus Pelican Fuel Cell System is produced and ready to be installed onboard MS Skulebas, a 35-meter fishing and training vessel owned by Vestland County and operated by Måløy Upper Secondary School in Norway.

The vessel already has a 1 MWh battery system onboard. By adding the Corvus Pelican Fuel Cell System and hydrogen storage, the vessel will be able to operate for four days on zero emission.

Photo credit: Corvus Energy
Published: 10 September, 2024