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Biofuel

Ponant expedition yacht takes on B100 biodiesel bunker fuel in France

“Le Champlain”, an expedition yacht from the Ponant Explorers series, has taken on B100 biodiesel which is 100% produced from recycled cooking oil, during a technical stop in Cherbourg in September 2023.

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French cruise company Ponant on Friday (25 September) said Le Champlain, an expedition yacht from the Ponant Explorers series, has taken on B100 biodiesel which is 100% produced from recycled cooking oil, during a technical stop in Cherbourg in September 2023.

Ponant said as the first French cruise line to test this new generation of biofuels, it continues to progress its sustainability and decarbonisation strategy, in particular its commitment to reducing its CO2 emissions by 30% per navigation day by 2030.

Mathieu Petiteau, Newbuilding and R&D Director at Ponant, said: “This first marine biofuel test is part of our roadmap as their carbon footprint is infinitely lower than conventional fuels, with a 90% reduction of CO2 emissions.”

“They are produced from used cooking oils, can be incorporated directly into engines and are available now. We want to help demonstrate that it is a credible alternative that can contribute to decarbonising Ponant’s fleet and the entire maritime industry.”

The B100 Le Champlain bunkered is produced in France from cooking oils collected from the french food industry, catering outlets and catering trades. It is distributed by ALTENS, a leading French supplier of alternative non-fossil fuels for the transport sector. The whole B100 biofuel production sector is certified by ISCC (International Sustainability and Carbon Certification), an international standard recognised by the European Union and which also guarantees traceability of raw materials.

Le Champlain is fitted with Wartsila diesel engines and B100 is totally compatible as a drop-in fuel to meet targets. With CO2 emissions 90% lower than fossil fuels, it exceeds European requirements for 2035. In compliance with legislation, the first bunkering will be accompanied by a series of tests to ensure in particular that NOx emissions remain compliant with regulatory specifications. SOx, particulates and black carbon emissions will also be measured. 

Once this trial stage has been completed, Ponant plans to roll out its use to the rest of its fleet, subject to supply capacities.

Photo credit: Ponant
Published: 29 September, 2023

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FuelEU

OceanScore reveals ship segments set to feel EUR 1.3 billion sting of FuelEU penalties

Container segment will bear the brunt of FuelEU costs, accounting for 29% of gross penalties, followed by RoPax on 14% with tankers and bulkers each on 13%, says firm.

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OceanScore Managing Director Albrecht Grell

Hamburg-based technology platform OceanScore on Tuesday (9 July) said the financial impact of FuelEU Maritime is focusing the minds of shipping companies as they face potential penalties for non-compliance with greenhouse gas (GHG) intensity reduction targets - and OceanScore has identified those segments set to be hit hardest.

The following is an article by OceanScore elaborating on the matter:

Vessels in the passenger/cruise, container, RoPax, bulker and tanker segments will have significant cost exposure from the complex regulation due to be implemented from 1 January next year, despite a relatively modest initial target of a 2% cut in GHG intensity, according to OceanScore.

The firm’s data analytics team has calculated that shipping will rack up total FuelEU penalties of €1.345 billion in 2025 through analysis of the 13,000 vessels over 5000gt trading within and into the EU/EEA that are subject to the regulation. This is based on data on trading patterns and fuel mix from 2022 - the last full year currently available.

Containers bear burden

The team has been able to determine FuelEU compliance balances and resulting penalties for each vessel using OceanScore’s proprietary data modelling incorporating AIS data, Thetis emissions data, bunker intelligence and advanced analytics/AI. It has factored in the likely fuel mix for each vessel between EU ports and to/from the EU, as well as in ports.

Vessels will be hit with a penalty of €2400 per tonne of VLSFO-equivalent for failing to meet the initial 2% reduction target relative to a 2020 baseline for average well-to-wake GHG intensity from fleet energy consumption of 91.16 gCO2e per megajoule (MJ) - or emissions per energy unit. The GHG intensity requirement applies to 100% of energy used on voyages and port calls within the EU/EEA and 50% of voyages into and out of the bloc.

As with the EU Emissions Trading System (EU ETS), it is the container segment that will bear the brunt of FuelEU costs, accounting for 29% of gross penalties, followed by RoPax on 14% with tankers and bulkers each on 13%.

“It is critical for shipping companies to determine a baseline for expected FuelEU costs to secure proper planning and budgeting processes to compare different mitigation options, as well as to decide what to do with outstanding compliance balances,” says OceanScore Managing Director Albrecht Grell.

“This will require, to a higher degree than the EU ETS, a corporate strategy to determine how to reduce the compliance balance/deficit, how to commercialise a surplus and deal with deficits that remain.”

Wide spread of vessel liabilities

OceanScore has found that liabilities per vessel will differ widely across the various segments due to increasingly diversified fuel choices, including greater uptake of biofuels and LNG. Passenger vessels will be penalised the most with an average of €520,000 per vessel annually, followed by RoPax at €480,000 and RoRo at €314,000, with an average penalty for container ships of only €214,000, according to OceanScore.

Grell points out there are also massive discrepancies between vessels within these segments, with a number of ships in the passenger and RoPax segments exposed to penalties of between €1.8m and €2.5m, and payment obligations for some container ships approaching €1m. This is driven by higher energy consumption simply due to vessel size and trading profile.

While penalties will arise from so-called compliance deficits for vessels using conventional fuels, surpluses totalling an estimated €669m will be generated mainly by vessels fuelled by LNG and LPG with significantly lower carbon intensity.

LNG carriers will account for 78% of the total market surplus and gas carriers 8%, while a further 8% will be generated by container ships that have seen a modest uptake in alternative fuels in recent years.

Pooling can halve costs for the industry

Taking into account this estimated compliance surplus, the net cost of FuelEU penalties for shipping from 2025 would be €680m, which indicates that pooling of vessels can roughly halve the gross burden for the industry.

Penalties will, in segments typically using conventional fuels with comparable carbon intensities such as HFO, LFO or MDO, be roughly proportional to the overall fuel consumption, thus correlating with the EU ETS cost.

Initial costs of FuelEU for most conventionally fuelled vessels, prior to pooling, will be around one-third of those associated with the EU ETS next year when the latter regulation will have 70% phase-in. But ultimately FuelEU is likely to prove a much more costly affair as the requirement for GHG intensity cuts rises to 6% by 2030 and then accelerates to reach 80% by 2050.

“It is therefore incumbent on shipowners to define their strategies not only towards fuel choices and the use of onshore power but also towards handling of residual compliance balances such as pooling, banking and borrowing of balances, to mitigate the financial impact of FuelEU. However, pooling will also come at a cost, while banking and borrowing will incur interest costs and only push liabilities into the future,” Grell explains.

‘Sound administrative processes’

He further points out that pooling compensations paid between different shipping companies will effectively divert cash flow away from the EU that it would otherwise have earned from FuelEU penalties – but that this effect is intended by the regulator to “reward” early adopters of clean fuels.

Another factor that will curb potential income for the EU from this regulation is that the compliance gap has been reduced to only 1.6% by 2022, as average GHG intensity from shipping has come down by 0.4% to 90.82 gCO2e per MJ, mainly due to increased LNG carrier calls to Europe after gas supplies via pipelines from Russia were halted when the latter invaded Ukraine. Given this trend and increasing adoption of biofuels, the 2% compliance gap will probably be closed before the first tightening of reduction targets in 2030.

Grell says the priority for shipping companies, especially at this early stage while cost exposure is relatively low, is to get to grips with the complexity of the regulation and tackle the risks arising from the fact the party liable for penalties - the DoC holder, or possibly shipowner - is not the one responsible for emissions, which is typically the charterer.

“As well as having costs oversight, companies require reliable monitoring and reporting mechanisms with high-quality emissions data. They must also have in place complex contractual arrangements and sound administrative processes to manage compliance and mitigate the financial consequences of the new regulation,” Grell concludes.

Related: FuelEU: New regulation leaves DoC holder with fuel liabilities risk, says OceanScore
Related: ‘Big opportunity’ for bunker traders, suppliers on upcoming FuelEU regulation, forecasts OceanScore

 

Photo credit: OceanScore
Published: 12 July, 2024

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Alternative Fuels

Singapore: MPA and NYK partnership to include green bunker fuel training programmes

Both signed a MoU to deepen their partnership and will include promoting the safe use of bunker fuels such as biofuels, methanol and low or zero-carbon ammonia through a phased approach.

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Singapore: MPA and NYK partnership to include green bunker fuel training programmes

The Maritime and Port Authority of Singapore (MPA) on Tuesday (9 July) said it has signed a memorandum of understanding (MoU) with Nippon Yusen Kabushiki Kaisha (NYK) to deepen their partnership and accelerate maritime decarbonisation, digitalisation, and manpower development efforts. 

In line with the International Maritime Organization’s revised Greenhouse Gas strategy 2023, the Paris Agreement, and international energy and climate targets, MPA and NYK will collaborate on various initiatives aimed at promoting a sustainable maritime industry. 

The partnership will include promoting the safe use of maritime fuels such as biofuels, methanol and low or zero-carbon ammonia through a phased approach. 

The MoU was signed by Mr Teo Eng Dih, Chief Executive, MPA, and Mr Takaya Soga, President and Group Chief Executive, NYK, on 2 July 2024.

Both parties will discuss maritime training programmes for seafarers on ammonia-fuelled vessels and other sustainability-related skills and competencies to support the industry’s transition towards alternative low or zero- carbon fuels, including leadership programs for local professionals.

Mr Teo Eng Dih, Chief Executive of MPA, said: “This MoU marks a significant milestone in the longstanding partnership between MPA and NYK. As a major bunkering and a maritime hub port, Singapore is in a phase of introducing alternative fuels and enhancing manpower development.”

“MPA looks forward to our partnership with NYK to unlock our collective potential and develop solutions that can be scaled up to benefit the global maritime community in the move towards smart and sustainable shipping.”

Mr Takaya Soga, President and Chief Executive Officer of NYK, said: “NYK has been proactively working on decarbonisation initiatives, digitalisation, and maritime human resource development to materialise a sustainable maritime industry.”

“We have begun ammonia-fuel-related business development including bunkering projects, endorsing the Singaporean government's initiative on fuel ammonia. Singapore plays a significant role in the maritime industry as the world's largest hub port for trans-shipment and bunkering.”

“We are delighted to conclude this MoU with MPA as we share the same goals. This MoU will accelerate cooperation between MPA and NYK and contribute to the sustainable development of the maritime industry.”

 

Photo credit: Maritime and Port Authority of Singapore
Published: 10 July, 2024

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Biofuel

MASH Makes to trial bio bunker fuel on DS Norden vessel in Singapore

Development comes after recent engine trials by FVTR GmbH that showed MASH Makes biofuel is compatible with the shipping industry’s stringent ISO 8217 fuel standard.

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NORD STEEL vessel

MASH Makes, a firm specialising in turning waste resources into sustainable commodities, on Monday (8 July) said its biofuel will be trialled on one of DS Norden’s live vessels in Singapore later this summer. 

This came following recent engine trials by FVTR GmbH, a development service provider in thermal processes and machines, that showed its biofuel is compatible with the shipping industry’s stringent ISO 8217 fuel standard.

The successful engine test achieved several milestones for a B20 VLSFO blend:

  • The engine consistently delivered the required power, indicating stable combustion
  • There was no increase in carbon monoxide levels, suggesting that the spray pattern, mixture formation and combustion process were not negatively impacted.
  • Nitrous oxide emissions were comparable to those from fossil fuels.
  • The fuel injection system operated smoothly without any clogging, polymerization, deposit formation or wear.
  • The fossil blend oil was VLSFO compliant with ISO 8217 standards, and the test covered a wide range of injection pressures (from 1000 to 1600 bar) and loads (from 0% to 100%).
  • The specific fuel oil consumption did not increase compared to fossil fuel usage. In addition, even a slight decrease in exhaust temperature could be measured.

Henrik Røjel, Head of Decarbonisation & Climate Solutions at DS NORDEN, said: "These results confirm the quality of MASH Makes’ biofuel as a viable new sustainable fuel for shipping. We're excited to be part of this journey together with MASH Makes' and provide new sustainable fuel options that will support decarbonisation in shipping and other critical industries.” 

MASH Makes said the biofuel industry has used the cashew value chain for feedstock for many years with mixed results.

“In contrast to other cashew-based biofuels, our fuel is an entirely new product from a unique thermochemical process that uses residues left after cashew nut shell liquid (CSNL) production. This is a novel pathway for scalable biofuel production using pyrolysis and low-intensity, low-cost upgrading,” the firm said.

“CSNL has been tested as a fuel for over a decade but has proven unreliable due to polymerisation effects thus causing issues for shipowners. In contrast, MASH Makes fuel does not exhibit these problems and is a higher-grade product.”

 

Photo credit: DS Norden
Published: 9 July, 2024

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