Alternative Fuels

Q&A by Argus Media: Antwerp port plans 10mn t/yr NH3 imports by 2030

Argus spoke with the programme manager for hydrogen at the Port of Antwerp-Bruges, Maxime Peeters, on capacity build-out, ammonia cracking, hydrogen transportation and bunkering solutions.

Published

1 year ago

November 23, 2023

Admin

Infrastructure build-out will be essential in the development of low-carbon ammonia value chains to meet Europe's clean energy import ambitions. Ahead of the Argus Clean Ammonia Conference Europe in Antwerp this month, Argus spoke with the programme manager for hydrogen at the Port of Antwerp-Bruges, Maxime Peeters. Capacity build-out, ammonia cracking, hydrogen transportation and bunkering solutions were discussed. Edited highlights follow.

REPowerEU has set a target of 20mn t/yr of green hydrogen consumption by 2030, one fifth of which should be covered by ammonia imports. What are the main developments taking place at the Port of Antwerp to facilitate this?

We are the biggest petrochemical cluster in Europe, so hydrogen and hydrogen derivatives already play quite an important role inside the port. There is existing infrastructure for ammonia, methanol and LNG.

We have existing import capacity, users, infrastructure and transit towards Germany for instance through barge, rail and pipeline. Today we have one large ammonia terminal in the port operated by BASF. Ammonia is both imported and produced on site and then used in Antwerp or transited towards Germany. That's how it works today.

Of course if we look at the 10mn t/yr hydrogen import ambition of Europe, there will be a much bigger need of ammonia imports, as ammonia is one of the major import molecules. We will need much more ammonia capacity, as well as methanol capacity.

We did a study with a coalition of several industrial partners — the hydrogen import coalition — looking at the Belgian and German markets and what needs to be done to make Belgium an import hub.

Germany will have an import demand by 2030 of around 90TWh/yr. We have the ambition to import a third of that — 30TWh. And for Belgium, we will need 10-15TWh of imports by 2030. That's a total of 45TWh/yr, or the equivalent of 1.2mn-1.5mn t hydrogen. That's roughly 6-10mn t/yr ammonia, or over 600,000m³ of open access ammonia capacity.

We've spoken to all of our tank-storage providers in the port, and in aggregate we have plans in place to meet 600,000m³ of additional open access ammonia capacity by 2030. We now need to move forward and reach financial investment decisions for several terminals. Most of them have an ambition to be on line by 2027, because the demand is there by 2030 with European targets. A lot of projects are already working on their permitting and they are having very detailed negotiations with capacity bookers, so we are moving in a very positive direction.

How has the current cost environment with increased inflation, energy and borrowing costs affected planned developments?

We talk to a lot of production projects globally and we do see that there is an increase of costs.

Borrowing money is more expensive and with inflation generally we have higher capital expenditure. The hydrogen import coalition did a recalculation of projected project costs from 3-4 years ago, and we found that costs of wind turbines, electrolysers and other included expenses meant that the total cost has escalated by 33pc. It is also harder to find EPC contractors willing to bear the risk. But we don't see any big roadblocks. Of course, there will be some filtering of those less mature and robust projects but that's normal in a maturing market.

What are the ports plans for ammonia cracking?

Most of the potential ammonia terminals want to build an ammonia cracker by 2027.

We'll have our first mid-scale cracker in Antwerp already in 2024 by Air Liquide, with scale-up planned for 2027. Fluxys has an ammonia terminal, VTTI plans to build one and we have SeaTank, Vesta and LBC who are all building tanks. Vopak has acquired new land in the port and plans to retrofit an old refinery site for new energy capacity, including ammonia. So a lot of market initiative is taking place.

Belgium's federal cabinet approved €250mn funding for a hydrogen transport network in July this year. What plans are in place for this?

The hydrogen import coalition estimates around 50pc of ammonia imports will be cracked for the hydrogen market, and 50pc will be used for ammonia uses in Belgium and Germany.

On the cracking level we need to distribute the hydrogen. The Belgian federal hydrogen strategy is supporting this with funds and with the appointment of a hydrogen network operator this year. The strategy has set forth that we will have an open access hydrogen backbone in Antwerp by 2026. Subsidies will only be applicable if the infrastructure is built by 2026, so 2026 is locked for a hydrogen network in Antwerp. Connection to Germany is planned for 2028, with extensions to the Netherlands and France by 2030.

The port of Antwerp is the fifth largest bunkering hub in the world. The port is already offering hydrogen bunkering options on a small scale. Do you have plans to facilitate any ammonia bunkering solutions?

Yes. We have a multi-fuel strategy. It sets forward that by 2025 we will make sure shipping lines that come here have the option to bunker the fuels that they want.

LNG is already possible at the port. We are working hard on both methanol and ammonia. We are working with bunkering companies, shipping lines, fuel suppliers and regulators to make sure that its possible in our port. We already get a lot of questions from shipping lines actually on the availability of ammonia and methanol.

How do you see market uptake of blue versus green ammonia?

Our position is that the long-term solution is green. But in the beginning, there won't be enough green. We will need blue in a transition period.

We have existing technology for carbon capture and storage which can drastically reduce the carbon emitted. It's a stepping stone towards green. In terms of the currently known status of the European targets, we only see a role for green. The blue market is more related to ETS emissions and reducing these.

By Lizzy Lancaster

Photo credit and source: Argus Media
Published: 23 November, 2023

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Alternative Fuels

South Korea launches USD 696 million green bunker fuel infrastructure fund

Out of KRW 1 trillion, KRW 600 billion will be invested to build port storage facilities capable of supplying alternative marine fuels while KRW 400 billion will be used for constructing four bunkering vessels.

Published

16 hours ago

January 22, 2025

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South Korea launches USD 696 million green bunker fuel infrastructure fund

South Korea’s Ministry of Oceans and Fisheries and Korea Ocean Business Corporation recently held a launch ceremony in Seoul for a KRW 1 trillion (USD 696 million) infrastructure fund that will be used to support the development of storage facilities for green marine fuels and bunkering vessels.

Out of the KRW 1 trillion, KRW 600 billion will be invested to build port storage facilities capable of supplying LNG, methanol, and ammonia, and the remaining KRW 400 billion will be invested in constructing four new LNG and ammonia bunkering vessels by 2030.

The move is expected to meet growing demand for green bunker fuels for domestic vessels and ensure reliable fuel supplies for foreign ships calling at domestic ports.

The ministry also announced that the Ulsan Hyundai Liquid Cargo Terminal Expansion Project was selected as the new fund’s first project to support the demand for methanol bunker fuel for domestic and foreign vessels. The total cost of the project is KRW 240 billion, of which KRW 130 billion will be provided by the infrastructure fund.

In addition, the government plans to strengthen LNG supply capabilities through the Yeosu Myodo LNG Hub Terminal Project scheduled as the second project to be supported by the fund.

Minister of Oceans and Fisheries Kang Do-hyung, said: “Through the infrastructure fund, the government will flexibly expand the eco-friendly ship fuel supply infrastructure in line with future demand so that our ports can continue to secure a competitive edge as a global hub port.”

Photo credit: Ministry of Oceans and Fisheries of South Korea
Published: 22 January, 2025

Alternative Fuels

UECC green bunker fuel investments avert FuelEU surcharges for customers

UECC said it has been able to eliminate surcharges for its customers under FuelEU Maritime as proactive adoption of green marine fuels has drastically reduced its financial exposure to the regulation.

Published

16 hours ago

January 22, 2025

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UECC and Titan team up on bio-LNG bunkering operations in Port of Zeebrugge

United European Car Carriers (UECC) on Monday (20 January) said it has been able to eliminate surcharges for its customers under FuelEU Maritime as proactive adoption of green fuels has drastically reduced its financial exposure to the newly implemented regulation.

Currently, switching to low-carbon biofuels is generally seen as the most effective route to achieve compliance with progressively tighter carbon intensity reduction targets and thereby avoid penalties under FEUM, which is designed to promote uptake of alternative fuel technologies towards the goal of net zero.

However, this approach will typically entail higher fuel costs for shipping companies given that biofuels - which can deliver respective reductions of 85% and 100% in well-to-wake and tank-to-wake emissions - cost between 50-150% more than conventional fossil fuels, while there is also limited feedstock supply.

An additional ‘Energy Surcharge’ levied on shippers to compensate for this price differential can be as much as 2-5% with the use of biofuel, according to UECC’s Energy & Sustainability Manager Daniel Gent.

But he said: “UECC will change absolutely nothing about its pricing structure in relation to FEUM.”

Gent explained this is largely due to the fact that UECC has already achieved significant reductions in carbon intensity by expanding the use of biofuels across its 15-vessel fleet since 2020.

It has also adopted liquefied biomethane (LBM) on its five dual and multi-fuel LNG Pure Car and Truck Carriers under the Sail for Change sustainability initiative launched last year that is supported by several major vehicle manufacturers.

“Consequently, we are already running a compliance surplus in relation to FEUM with our current energy mix and this is expected to extend into the early 2030s,” he says.

“We have previously informed our customers that their support for our investment in multi-fuel LNG vessels would insulate them against regulatory penalties and this is exactly what is happening here. This demonstrates the clear benefits of being ahead of regulation, investing in progressive technology and in the process of generating savings for our customers.”

UECC’s fleet decarbonisation effort has focused on investments in eco-friendly newbuilds - with two more multi-fuel LNG battery hybrid PCTCs currently on order - as well as piloting alternative fuels, in addition to operational efficiencies and technical measures such as waste heat recovery and hull anti-fouling.

The company has rigorous fuel selection criteria based on sustainability, technical suitability and commercial viability. Its bio-products are compliant with Renewable Energy Directive (RED) criteria and sourced from Annex 9 feedstocks in line with regulatory requirements, while all fuels used are ISCC-certified.

Through a proactive fuel procurement strategy, UECC has secured volumes of alternative fuels for the longer term through agreements with suppliers like Titan Clean Fuels for LBM and ACT Commodities for biofuels to promote green fuel bunkering infrastructure. It is also diversifying its sources of supply, such as through a recent first truck-to-ship LBM refuelling operation with Naturgy in Spain.

“LBM from certain feedstocks or including carbon capture are the ‘heavy lifters’ on our decarbonisation journey and we see huge potential in these fuels,” Gent says.

UECC is firmly on track to achieve a minimum 45% reduction in carbon intensity by 2030 to surpass the IMO target, while it is also set to exceed the required FEUM reduction of 31% by 2040 versus a 2020 baseline of 91.16 grams of CO2 equivalent per megajoule.

This means that UECC will have a sufficient compliance surplus to provide a pooling opportunity for third-party vessels under FEUM “so that all stakeholders can benefit from our investments”, according to Gent. But he says the company is not resting on its laurels and intends to make further alternative fuel investments with the aim of phasing out oil-based fossil fuels by 2040.

“As we are going ‘above and beyond’ in terms of our commitment to alternative fuels such as LBM and biofuel, we expect to have a significant compliance surplus under FEUM. With the investments we are planning in such fuels, UECC will never be in a position of needing to buy or borrow compliance units,” Gent concluded.

Photo credit: United European Car Carriers
Published: 22 January, 2025

Research

Safetytech Accelerator trials show strong potential to cut methane emissions in shipping

Three technologies from Framergy, Sorama, and Xplorobot, which were selected by MAMII, show potential to detect, measure, and mitigate methane emissions on LNG-powered ships.

Published

16 hours ago

January 22, 2025

Admin

Safetytech Accelerator on Tuesday (21 January) said it has successfully completed three technology feasibility studies as part of its flagship Methane Abatement in Maritime Innovation Initiative (MAMII).

The studies were done in collaboration with Chevron, Carnival Corporation, Shell and Seapeak.

The results of these feasibility studies showed strong potential to cut fugitive methane emissions in the maritime industry.

MAMII is exploring options to advance these research projects to on-ship trials as soon as possible. 

While methane slip - unburnt methane released during the combustion process - remains the largest source of methane emissions on ships, emissions across the LNG supply chain, from loading to engine delivery, are also a concern.

These fugitive emissions are often unintended and short-lived, but identifying, quantifying, and mitigating them is essential to achieving industry-wide decarbonization goals.

Xplorobot, Sorama and framergy were selected by MAMII to help address the vital need to detect, measure and capture fugitive methane emissions from LNG-fuelled ships.

Each provider selected for the trials brings expertise in a different technology, including:

Xplorobot: Provides a handheld device and AI-powered platform to detect and measure fugitive methane on ships using computer vision to pinpoint leak locations, overlay real-time emission rate data, and integrate seamlessly with existing systems for quick issue resolution without requiring specialised training.
Sorama: Develops acoustic cameras that detect fugitive gas by visualizing sound and vibration fields in 3D. Integrated AI and onboard software identify anomalies and classify sounds, enabling direct leak localization without complex analysis.
framergy: Specialises in adsorbents and catalysts for methane emission management. Their product, AYRSORB™ F250GII, captures and stores fugitive methane by selectively filtering methane from the air, leveraging its ultra-high surface area and coordination chemistry.

Feasibility Study Results Show Promise For Methane Abatement

Xplorobot conducted a detailed evaluation of their Methane Compliance Solution, focusing on its efficacy in detecting and quantifying methane emissions on LNG carriers and LNG-powered vessels.

The study targeted emissions from the warm side of the gas fuel line and both planned and unplanned venting events. Utilising comparable on-land data, this desktop analysis assessed how the technology would perform in maritime settings.

The technology demonstrated accuracy levels of +/-30% for emissions over 500 grams per hour and +/-50% for emissions between 100 and 500 grams per hour, thanks to a refined neural network algorithm calibrated through controlled release experiments. Xplorobot's solution promises to reduce inspection time dramatically with the ability to inspect 50 to 100 components in under an hour—sometimes as quickly as 10 minutes.

This efficiency, combined with automated digital emission tracking and compliance reporting, make the solution cost-effective. The next step is to deploy the kit in the field to further validate and optimise the technology for widespread adoption across the maritime industry.

Photo credit: CHUTTERSNAP from Unsplash
Published: 22 January, 2025