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Biofuel

Peninsula Shanghai and Singapore teams fixes bio bunker fuel deal for Cosco 

Trading teams recently combined to deliver 2,000 mt of UCOME-based B24 marine biofuel to Cosco container carrier “M/V Cscl Venus” through local Singapore physical supplier, Vitol Bunkers.

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Peninsula, the leading global independent marine energy supplier, has fixed its first Biofuel deal for Shanghai-based international shipping firm Cosco Shipping Lines (Cosco).

Peninsula’s Shanghai and Singapore trading teams recently combined to deliver 2,000 metric tonnes (mt) of UCOME-based B24 marine biofuel to the 155,000 DWT Cosco container carrier, M/V Cscl Venus, through local Singapore physical supplier, Vitol Bunkers. 

Biofuel demand continues to increase as a result of tighter regulation around maritime carbon emissions. This delivery is another example of Peninsula’s ability to unite close customer relationships with optimum supply solutions.

The use of biofuel in the delivery will provide minimum GHG savings of over 1,200 tonnes of CO2 equivalent. For context, this saving is the equivalent CO2 emissions of over 200 vans covering 40,000 km each. 

Nacho de Miguel, Head of Alternative Fuels and Sustainability at Peninsula, said: “Peninsula’s strong brand presence across our Asian network is bringing significantly increased alternative fuels demand. Biofuel supply volumes are naturally increasing due to the regulatory environment, but it is equally clear that customers like Cosco, one of the biggest names in global shipping, feels able to trust Peninsula in delivering reliable lower-carbon solutions.”

Michael Tang, Chief Representative Officer (China) for Peninsula, added: “We are very grateful to Cosco for choosing Peninsula to arrange this Biofuel supply. Our internal expertise across the entire alternative fuels supply chain, as both physical supplier and trader, means that we can add real value to our customers.  We look forward to continuing our decarbonisation journey together.”   

Photo credit: Peninsula
Published: 3 October, 2023

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Biofuel

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

Fingerprinting identifies feedstock origins of FAME-based biofuels used in shipping industry; can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity.

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Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

The Global Centre for Maritime Decarbonisation (GCMD) on Monday (2 December) released its latest report, presenting a new technique that creates a fingerprint for Fatty Acid Methyl Esters(FAME) bio bunker fuels.

This fingerprint identifies the feedstock origins of the FAME-based biofuels used in the shipping industry.

GCMD said FAME fingerprinting is needed as the shipping sector is increasingly using biofuels, such as FAME, to reduce its GHG emissions. With that, concerns have arisen regarding the legitimacy of biofuels and whether they are truly sustainable. 

Industry bodies are seeing a rising number of cases mislabelling biofuels purported to be made from recycled oils and fats, while suspicions persist that they might be produced from cheaper and less sustainable virgin oils.

“To address these concerns, FAME fingerprinting can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity. By providing a physical validation method that complements existing certification schemes, FAME fingerprinting can help justify the green premium with genuine environmental benefits and safeguard the integrity of marine fuels supply chain,” GCMD said. 

FAME fingerprinting is based on the principle that the fatty acid profile of FAME is unique to its feedstock and can be preserved during feedstock transesterification to produce FAME. The "fingerprint" can then be compared against a database of known fatty acid profiles to identify the feedstock origin. 

GCMD worked with VPS who modified existing fuel testing methods to carry out sample analyses using a gas chromatograph with flame-ionisation detection, an instrument commonly found in fuel test laboratories. 

The analysis takes about an hour, comparable to the turnaround time for current marine fuel quality testing in the supply chain. 

“We have tested this method on a variety of FAME samples from different suppliers, including virgin oils, used cooking oils, palm oil mill effluent, beef tallow and food waste and were able to identify the feedstock origins for each sample,” GCMD added.

Manifold Times previously reported Captain Rahul Choudhuri, President, Strategic Partnerships at marine fuels testing company VPS, forecasting the use of finger printing technology today will likely establish a blueprint of how future alternative bunker fuels’ feedstocks are authenticated.

Captain Choudhuri said this when he gave an update of VPS’ biofuels finger printing trials with GCMD.

Note: The full report, titled ‘Rapid forensic analysis of FAME-based biofuels: Potential use of its fingerprint as a fraud detection tool’, can be downloaded here

Related: Marine Fuels 360: Fingerprinting to play key role in proving biofuel feedstock authenticity and beyond, says VPS
Related: GCMD-led consortium completes trials of sustainable biofuel bunker supply chains
Related: Dr. Nicholas Clague shares VPS’ experience with alternative bunker fuels
Related: Dubai: Shipowners and peers discuss realities of biofuel adoption at VPS Biofuels Seminar
Related: Singapore: VPS panel discussion presents a masterclass in shipping’s biofuel bunker adoption issues to the deck

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 2 December, 2024

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Alternative Fuels

Eni and MSC to jointly explore potential use of LNG and bio bunker fuels

As part of a MoU, both will explore potential use of LNG as well as lower-carbon energy carriers, such as HVO and bio-LNG biofuels, as well as lubricants from renewable raw material, for use on MSC fleets.

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Integrated energy company Eni and shipping and logistics provider MSC Mediterranean Shipping Company on Monday (25 November) signed a Memorandum of Understanding (MoU) aimed at developing joint initiatives in the field of sustainability and energy transition. 

The agreement includes the potential use of LNG as well as lower-carbon energy carriers, such as HVO and bio-LNG biofuels, as well as lubricants from renewable raw materials, for use on MSC fleets dedicated to both logistics and cruise transport. 

Renewable energy solutions will be assessed to contribute to the decarbonisation of MSC’s sites and facilities. More generally, the agreement aims to create new synergies between the two companies’ operations, from logistics services to intermodal transport, covering both agro-industrial activities for the production of raw materials, including Agri feedstock, for biorefining, and the storage and transport of HVO biofuels through innovative intermodal sea, rail and road transport solutions. 

The agreement provides for good circular economy practices, from the on-board use of plastics also from renewable and recycled raw materials, including single-use packaging products, to the collection and management of waste produced on board the fleets, and the potential redevelopment of decommissioned Eni areas and assets.

Claudio Descalzi, CEO of Eni, said: “This agreement marks the start of our collaboration with MSC in the decarbonisation of transport and cruise services. MSC is the world leader in the sector and we are confident that together we will be able to develop and implement decarbonisation initiatives, that provide an important contribution to the sector and to the reduction of emissions from our transport systems.”

Diego Aponte, MSC Group President, said: “We look forward to working more closely with Eni as we broaden and deepen our approach to sustainability and decarbonization across the MSC Group of companies.”

 

Photo credit: MSC Mediterranean Shipping Company
Published: 26 November, 2024 

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Port & Regulatory

Glander International Bunkering dives into Carbon Intensity Indicator

Having a fleet with consistently high CII scores sends a message that your company is planning well for the future, recognizing its role within the energy transition and taking ESG seriously, says firm.

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Global bunker trading firm Glander International Bunkering on Monday (18 November) published an article tackling Carbon Intensity Indicator (CII) and gives five reasons to prioritise CII: 

The Carbon Intensity Indicator (CII) from the International Maritime Organization is a vital yet under-discussed regulation for decarbonizing the shipping industry that warrants more attention.

The regulation was first drawn up in 2018 and came into effect at the start of 2023, as part of the so-called short-term measures following IMO’s initial greenhouse gas strategy.

All vessels larger than 5,000 GT are assigned a CII rating based on historical data submitted to the IMO. The rating reflects the vessel’s CO2 emissions per unit of cargo capacity (DWT) per nautical mile.

Ratings range from A to E, with A at the top of the scale, and will be determined on an annual basis. Ships receiving a D rating for three consecutive years or an E rating for a single year will need to update the Ship Energy Efficiency Management Plan (SEEMP) to include corrective actions aimed at improving performance.

Achieving a higher rating makes the vessel more attractive to companies and cargo owners focused on minimizing GHG emissions. Below are five reasons to prioritize CII, even as other regulations capture more attention.

  • Action not Reaction

CII is a regulation where proactive planning pays the biggest dividends.

If a ship is performing at an E-grade level for most of a year, trying to get that up to an A before the year ends will yield little in the way of results, but earlier action can have a large impact.

Every shipowner should be paying careful attention to their vessel’s trade patterns, the type of fuel it uses, and which energy-saving technologies could be installed on it. Conducting this analysis early and formulating a plan to improve CII scores will yield multiple long-term benefits.

  • Business Competitiveness

The main reason for shipping companies to pay attention to CII is to improve their bottom line. Charterers and cargo owners with targets to lower GHG emissions may favor ships with a good CII grade, as the use of these vessels will reflect well on their own environmental performance. Equally, ships trending towards a failing grade are likely to be seen as less efficient.

A good CII score could also result in better financing options as vessels that trade more efficiently experience less idle time. Further, financial institutions focused on GHG reductions may offer favorable terms for vessels deemed more efficient with better CII scores.

Beyond this, CII is largely an indication of fuel efficiency, which should be a prime concern in any case; bunker costs are the largest expense for most shipping companies, and lowering these bills in any way possible will mean higher profitability in the long run.

  • CO2 Compliance

The main purpose for the CII regulation is to encourage the reduction of CO2 emissions. Decarbonization has emerged as a priority for the shipping industry, and companies that fail to keep pace with this agenda will increasingly be perceived as lacking a strategic vision for the future.

Installing energy-saving technologies, using voyage optimization tools and burning biofuel blends will all contribute to reduced CO2 emissions and better CII scores.

  • Decreased Costs

Prioritizing CII scores is expected to result in overall cost savings for shipping companies. This is potentially due to vessels having less idle time and trading more efficiently, which cuts bunker bills.

Steps towards compliance with CII will also assist in addressing other regulations such as the EU ETS, FuelEU Maritime and any carbon taxation the IMO may choose to impose in future. Each of these regulations comes with a cost, and early work on CII will reduce these costs in time.

  • ESG Focus

Finally, formulating a strong strategy on CII can play an important role in advancing your company’s environmental, social and governance (ESG) agenda.

Having a fleet with consistently high CII scores sends a message that your company is planning well for the future, recognizing its role within the energy transition and taking ESG seriously. Banking and insurance counterparties are likely to take a keen interest in ESG plans, and your work on these issues may also feed into your customers’ own ESG strategy.

 

Photo credit: Glander International Bunkering
Published: 26 November, 2024 

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