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Alternative Fuels

Port of Rotterdam and GoodShipping to encourage use of sustainable bunker biofuels through insetting concept

Aim is for joint vessel bunkering with twenty sea freight shippers to reduce the amount of carbon released into the atmosphere by 2023 tonnes.

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The Port of Rotterdam Authority and Dutch company GoodShipping on Monday (5 December) said they are conducting a joint campaign to inform companies of an ‘insetting’ concept they have launched so the firms can have part, or all of their sea freight transported via sustainable bunker fuels.

The aim of the ‘Switch to Zero’ campaign is to get some twenty sea freight shippers on board. Swinkels Family Brewers, known for brands including Bavaria and Cornet, and Dille & Kamille are the first to announce their participation in this campaign. They will have some or all of their containers shipped using sustainable advanced biofuels next year.

Participating companies can opt for carbon reduction of 75, 100 or 125 tonnes. GoodShipping and the Port Authority are giving a substantial discount per tonne carbon reduction to make it attractive for companies to find out more about this approach.

Insetting does not involve achieving carbon reductions through compensation (offsetting by planting trees, for example) but through shipping using sustainable fuel. Shippers often transport small numbers of containers on different vessels and can use insetting to purchase a certain amount of carbon reduction via GoodShipping. GoodShipping ensures that this is achieved by providing a vessel with sustainable fuel. This does not need to be the same vessel on which the containers are transported.

The campaign makes it easy to get involved and make a concrete contribution to reducing carbon emissions. The aim is for joint vessel bunkering with these shippers to reduce the amount of carbon released into the atmosphere by 2023 tonnes. This is comparable to the amount of carbon released when transporting some 15,000 TEU containers between Rotterdam and Gothenburg.

Allard Castelein, Port of Rotterdam Authority CEO, said: ‘Shipping is not yet on schedule to be carbon neutral by 2050. We are working with partners to develop a range of initiatives to help make logistics more sustainable: from battery-powered inland shipping to shore power for sea-going vessels, and from bio-kerosene production for aviation to so-called Green Corridors for sea-going vessels. The 2023 tonne reduction through sustainable fuel use is just the start. We want to show that it can be done and start the discussion, with the aim of scaling up and reducing carbon emissions even further. The transition tempo needs to step up.’

Dirk Kronemeijer, CEO Dirk Kronemeijer, CEO GoodShipping, said: ‘We’ve seen a huge acceleration in the pace of the energy transition brought about by shippers over the past two years, which is why we want to give more companies the opportunity to have their freight shipped sustainably. The Port of Rotterdam Authority aims to be the world's most sustainable port and it was an obvious choice for GoodShipping to support that. With the Switch to Zero campaign, we’re making it easy for companies to enhance the sustainability of their transport without complex supply chain adaptations.’

Harold Reusink, Supply Chain Manager at Dille & Kamille, said: ‘At Dille & Kamille, we aim to further enhance the sustainability of our range, which is why we are working with GoodShipping for our overseas transport. What is fantastic about this partnership is that it also inspires others to consider more sustainable options. This creates a chain reaction within a traditionally conservative chain, simply because people start asking new questions about how transport is organised.’

Fred Hooft, Global Logistics Manager at Swinkels Family Brewers, said: ‘We want our operations to be fully circular, which is why we’re looking at the carbon emissions of our transport. The Switch to Zero campaign is a great first step to explore how we can make our sea transport more sustainable. Hopefully this initiative will stimulate more companies to take this step and enable us to jointly make the difference to reduce our impact on the environment and climate.’

GoodShipping already works for companies including DHL, IKEA, BMW, Tony’s Chocolonely, Beiersdorf and Kings of Indigo. The fuel is produced from certified sustainable flows including frying oils and animal fats that are labelled as 100% waste and cannot be used in higher grade products. These so-called advanced biofuels also do not compete with the food chain and production does not affect important ecosystems such as the rainforest. This is monitored by an independent sustainability board.

 

Photo credit: Port of Rotterdam
Published: 7 December, 2022

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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.

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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

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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.

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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.

Related: OCI Global and TankMatch complete green methanol bunkering op in Rotterdam
Related: OCI Global awarded first green methanol bunkering permit at Egypt ports
Related: OCI Global to double green methanol capacity in US to meet demand from industries
Related: OCI Global to supply X-Press Feeders with green methanol bunker fuel in Rotterdam
Related: Maersk boxship receives OCI Global methanol bunker fuel at Port of Rotterdam
Related: OCI Global completes first green methanol bunkering of Maersk methanol-fuelled boxship

 

Photo credit: OCI Global
Published: 10 September, 2024

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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.

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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

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