Alternative Fuels

Partners in Rotterdam-Singapore Green & Digital Shipping Corridor support emission reductions

Separate working group has been formed to address gaps in regulation and financing including modelling price-gap differences to incentivise the uptake of alternative bunker fuels.

Published

1 year ago

September 20, 2023

Admin

The Maritime and Port Authority of Singapore (MPA), the Port of Rotterdam (PoR) and 20 partners in the Green & Digital Shipping Corridor are working to reduce 20% to 30% of emissions from international shipping by 2030, according to MPA on Wednesday (20 September).

This was agreed at the third Green Corridor workshop, held this week in Rotterdam.

The Green & Digital Shipping Corridor was established in August 2022 to bring together partners across the supply chain to realise zero and near-zero emissions shipping on the Rotterdam-Singapore route, with the ultimate aim to reach net-zero emissions in 2050. Over the past year, the corridor attracted strong support from global value-chain partners, including shipping lines, port authorities and operators, fuel suppliers, fuel coalitions and associations, banks, leading institutes of higher learning and knowledge partners.

The project partners are working towards reducing GHG emissions from this international shipping corridor by 20%, striving for 30%, by 2030, compared to 20221. The corridor will continue to deepen efforts towards achieving the strengthened ambition of the International Maritime Organization (IMO) under the 2023 IMO Strategy on Reduction of GHG Emissions from Ships. This is to be achieved through the development and uptake of zero and near-zero emission fuels in large containers vessels (of at least 8,000 TEU) deployed on the 15,000 km route, supported by a combination of operational and digital efficiencies.

A modelling study led by the Mærsk Mc-Kinney Møller Center for Zero-Carbon Shipping, one of the corridor partners for the project, and supported by the ports, explored multiple alternative fuels across a variety of zero and near-zero emission pathways, including synthetic and bio- variants of methanol, ammonia and LNG. Beyond the study, hydrogen is one other alternative fuel pathway to be looked at. Efforts are underway to aggregate demand and supply to reduce cost gap towards adoption of sustainable fuels.

Working groups have been established to look into the deployment of all of these fuels on the trade lane, spanning across demand and supply of fuel, standards, safety procedures, financing and regulations. The corridor partners gathered in Rotterdam this week to identify action steps for the various fuel pathways.

Enabling the use of new bunker fuels

Low carbon marine fuels will likely be more expensive than existing fuels and a separate working group has been formed with the support of the Global Maritime Forum, the Centre for Maritime Studies of the National University of Singapore, University of Oxford, and Citi, to address gaps in regulation and financing. The study includes modelling price-gap differences to incentivise the uptake of alternative bunker fuels.

In addition, Singapore and Rotterdam have jointly assessed the readiness of both ports and steps ahead such as adopting similar bunkering standards and safety frameworks to accelerate the adoption of zero and near-zero emission fuels on this major trade route. This was put into action in Q3 2023 with the conduct of ship-to-ship green methanol bunkering on the world’s first methanol-fuelled container ship at both Port of Singapore and Rotterdam.

The partners believe that the corridor’s approach, supported by the strong industry coalition, will provide greater certainty in demand and help scale-up production of zero and near-zero emission fuels. This will help to close the cost gap and encourage even wider adoption of such fuels.

Digital trade lanes

Rotterdam and Singapore are the first ports adopting and sharing port and vessel information such as arrival and departure timings in accordance with global standards, namely the IMO & International Hydrographic Organization (IHO) standards to enable systems interoperability.

Both ports are also promoting the use of electronic bills of lading and digital solutions such as just-in-time planning and coordination to enhance efficiencies and reduce GHG emissions.

Partners in the Rotterdam-Singapore Green & Digital Shipping Corridor:

The Maritime and Port Authority of Singapore, the Port of Rotterdam, A.P. Moller Maersk A/S, bp, the Centre for Maritime Studies of the National University of Singapore, Citi, Clifford Capital, CMA CGM, Digital Container Shipping Association, the Global Centre for Maritime Decarbonisation, the Global Maritime Forum, the Mærsk Mc-Kinney Møller Center for Zero- Carbon Shipping, Methanol Institute, MSC, Nanyang Technological University Maritime Energy and Sustainable Development Centre of Excellence, Ocean Network Express, PSA International, RMI , SEA-LNG, Shell, University of Oxford, Yara Clean Ammonia.

Photo credit: Maritime and Port Authority of Singapore
Published: 20 September, 2023

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LNG Bunkering

Singapore: MPA launches EOI to expand LNG bunkering services amid growing demand

MPA is seeking proposals to explore scalable solutions for sea-based LNG reloading to complement existing onshore LNG bunkering storage and jetty capacities and e/bio-methane supply as a marine fuel.

Published

1 day ago

December 13, 2024

Admin

The Maritime and Port Authority of Singapore (MPA) has launched an Expression of Interest (EOI) to explore scalable solutions for sea-based liquefied natural gas (LNG) reloading to complement the existing onshore LNG bunkering storage and jetty capacities and the supply of e/bio-methane as marine fuel in the Port of Singapore.

MPA said LNG bunkering in Singapore has grown from 16,000 tonnes delivered in 2022 to over 385,000 tonnes delivered from January to October 2024.

According to the EOI, demand for LNG bunkering is expected to grow further with a growing global fleet of LNG dual-fuelled vessels and competitive LNG bunker prices.

“The EOI seeks to gather proposals on three areas: to scale up sea-based reloading operations, including ship-to-bunker barge LNG operations; to facilitate the supply of LNG alternatives such as liquefied bio-methane; and to develop floating platform concepts to enhance bunkering safety and efficiency,” MPA added.

“The EOI proposals should also include mitigation measures to address the issue of methane slip on a well-to-wake basis.”

Participants in the EOI do not need to be an existing LNG bunkering licensee. Participants are required to propose models for operationalising sea-based LNG reloading starting from 2025. Participants selected will be required to conduct trials in Singapore to validate the proposed solution’s operational feasibility and safety.

“Insights gained from the EOI and trials will inform MPA’s review of the LNG licensing framework, including enhancements to supply to better serve the industry’s bunkering needs,” it said.

Note: Interested parties can visit the MPA website for details and submission guidelines. Proposals must be submitted by 28 February 2025, 1pm (Singapore time).

Photo credit: Manifold Times
Published: 13 December, 2024

LNG Bunkering

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Firm will supply cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel currently being built at Nantong CIMC Sinopacific Offshore & Engineering shipyard in China.

Published

1 day ago

December 13, 2024

Admin

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Wärtsilä Gas Solutions, part of technology group Wärtsilä, on Friday (13 December) said it has won a contract to supply Cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel.

The vessel is being built at the Nantong CIMC Sinopacific Offshore & Engineering shipyard in China, for global energy company Vitol.

“Wärtsilä’s ability to engineer, design and deliver a complete system, including the Boil-Off Gas (BOG) management, integrated fuel supply, custody transfer and bunkering transfer systems, was central to the contract award,” Wärtsilä said, adding the order was booked by the company in Q4, 2024.

Richie Zhu, Sales Manager, Wärtsilä Gas Solutions, China, said: “LNG is today an important marine fuel and is rapidly becoming the preferred choice for owners and operators seeking more sustainable fuel options. The market for LNG bunkering vessels is increasing in line with this trend, and we have established a leading position in supplying modern and reliable systems that optimise overall cargo handling efficiency for such vessels.”

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 20,000 m3 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: Wärtsilä
Published: 13 December, 2024

Newbuilding

UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

Vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from CIMC Raffles Offshore Engineering.

Published

1 day ago

December 13, 2024

Admin

UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

United European Car Carriers (UECC) on Wednesday (11 December) said it has further expanded its fleet of eco-friendly car carriers with the addition of the dual-fuel LNG newbuild Blue Aspire.

The vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from a Chinese shipyard.

The 200-metre long Pure Car and Truck Carrier (PCTC), delivered from CIMC Raffles Offshore Engineering, has capacity for nearly 7000 vehicles on 12 cargo decks.

UECC will operate the vessel together with another five vessels on a route between the Mediterranean and Northern Europe, traversing the Turkish ports of Yenikoy and Autoport, the German port of Cuxhaven, and Zeebrugge, Belgium every 4.5 days.

“Deployment of the Blue Aspire will boost tremendously capacity and sailing frequency on this busy trade route, currently serviced by five vessels, while further enhancing the sustainability of the UECC fleet,” said the company’s COO Per Christian Mørk.

The latest fleet addition will increase to six the number of UECC-operated vessels plying the North-South network, taking in a total of 10 ports on two routes, after the recent deployment of the renamed Auto Way that was acquired by UECC’s joint owner Wallenius Lines from Höegh Autoliners earlier this year.

It will also boost the size of UECC’s owned and chartered fleet to 15 PCTCs, including five dual and multi-fuel LNG vessels - three with battery hybrid capability - delivered in the past decade, with another two multi-fuel LNG newbuilds currently on order that are set for delivery in 2028 and options for two similar units.

“We are expanding our fleet with greater capacity and cargo-carrying flexibility to provide a more efficient service for clients in response to increasing demand as we see longer-term growth potential in this market,” Mørk explained.

Mørk said sustainability is now a key priority in procurement of maritime transport services to meet the environmental goals of vehicle manufacturers amid new green regulations - including FuelEU Maritime and the EU ETS - that provide a commercial incentive to reduce the cost of GHG emissions.

“UECC is catering to this market requirement with an eco-friendly fleet geared to minimizing the environmental footprint of vessel operations with progressive reductions in carbon intensity, in line with regulation, through adoption of energy-efficient technologies and alternative fuels,” he says.

Mørk noted that, while LNG can reduce emissions by around 25% compared with conventional fossil fuels, there is potential to greatly enhance environmental performance on LNG-fuelled vessels like Blue Aspire by switching to liquefied biomethane (LBM) that offers net-zero potential.

UECC is now increasing application of the latter fuel on its dual-fuel LNG PCTCs after recently securing an LBM supply agreement with Titan Clean Fuels that is forecast to cut its overall fleet emissions by 75,000 tons in 2025.

“The Blue Aspire therefore represents a valuable addition to the UECC fleet that underpins our market commitment to sustainability, while contributing to decarbonization of shipping,” Mørk concludes.

Photo credit: United European Car Carriers
Published: 13 December, 2024