Alternative Fuels

Quadrise Plc gives 2023 overview and updates on low-carbon bunker fuel projects

Structured process is now underway to seek commercial partners that would allow firm to be able to quickly scale up in preparation for the expected growth of MSAR® and bioMSAR™ sales, says Quadrise.

Published

1 year ago

November 28, 2023

Admin

MSAR® and bioMSAR™ emulsion technology and fuels supplier Quadrise on Monday (27 November) provided an update ahead of the Company's Annual General Meeting (AGM).

The firm said it recently published a 2023 sustainability report setting out its efforts to address demand for solutions to decarbonise shipping, and to build capacity for the supply of our low-carbon fuels in the US.

In advance of the anticipated developments outlined below, a formal process is now underway to seek commercial partners in both the marine and US-focused low-carbon fuel markets who would be able to contribute the resources necessary to scale up growth rapidly once trials have been completed.

“In this regard, we have also been particularly heartened by the success of bioMSAR™ in Morocco, as announced on 22 November 2023, demonstrating the viability of bioMSAR™ in an industrial application,” it said.

Building on this, there has been considerable RDI progress at the Quadrise Research Facility (QRF) with commercial partners to develop bioMSAR™ formulations using lower cost, lower-carbon, and globally abundant biomass-derived sugars produced using various technologies.

“This is a clear pointer to the future for the company as the need for commercially competitive net-zero fuel solutions grows in urgency,” it said in a statement.

The Company's progress in each of its key projects towards their next stages is described below:

Morocco: The industrial demonstration test of MSAR® and bioMSAR™ fuels at the client's site in Morocco was successfully completed, as announced on 22 November 2023. This was the first demonstration of bioMSAR™ in a commercial application and Quadrise is now preparing a technical report to submit to the client within the next month. The parties now look forward to entering into discussions for long-term commercial supply in conjunction with reaching an agreement for testing at other client sites to expand supply opportunities for MSAR®, and in the future, bioMSAR™ fuels.

Marine: Agreements with project stakeholders covering the Proof-of-Concept and Letter Of No Objection (LONO) commercial trials on bioMSAR™ with MSC Shipmanagement (MSC) are expected to be concluded in December 2023. The agreements cover trial fuel production, supply, and logistics. Provided these and the relevant permits are concluded in time, Quadrise equipment will be installed and commissioned at the bunker terminal in Q1 2024, with the intention to commence the trials in early Q2 2024, in accordance with the latest vessel schedule shared by MSC recently.

US low carbon fuels: Quadrise understands that Valkor Technologies LLC (Valkor) expects to conclude drilling permits and project ﬁnancing relating to their primary project site in Utah by the end of the calendar year 2023. Provided a minimum of US$15 million is successfully raised by Valkor, under the terms of the Site License and Supply Agreement signed in June 2023, Valkor will pay Quadrise an initial US$1.0 million licence fee and a further US$0.5 million upon delivery of an MSAR® Manufacturing Unit to the project site in Utah.

bioMSAR™ development: As described in the overview above, during FY23 and since the period end, work has been progressing at the QRF in conjunction with commercial partners Vertoro BV and BTG Bioliquids BV, as well as with other prospective partners, to develop bioMSAR™ formulations made using biomass-derived sugars. These are a lower cost and more globally abundant future alternative to glycerine and would enable a lower cost, lower carbon biofuel alternative to be produced which could then be marketed at scale to the marine and industrial sectors. Discussions have been progressing with other stakeholders in this renewable sector.

In November 2023, diesel engine testing was completed at Aquafuel on blends of bioMSAR™ containing 20% to 40% of Vertoro's crude sugar oil (CSO™). The testing demonstrated improved engine efficiency and lower Nitrogen oxide ("NOx") and particulate emissions upon combustion when compared to conventional diesel. Quadrise and Vertoro are now discussing the next steps toward commercialisation of the CSO™ bioMSAR™ blends. Aquafuel tests were also completed using blends of marine B30 biofuels containing FAME in MSAR® and bioMSAR™ to assess engine efficiency and emissions improvements, both of which were positive and a further step towards bioMSAR™ Zero.

Jason Miles, Chief Executive Officer of QED, said: "During 2023, we have continued to make progress with each of our key projects as well as with our work to supply bioMSAR™ at commercial scale and develop lower carbon biofuel alternatives using biomass derived sugars. We were particularly pleased to note the first commercial scale demonstration of bioMSAR in Morocco, where the client's industrial unit was successfully operated at varying loads of up to 100%, equivalent to the energy consumption of a medium-sized container ship.

The progress made in Morocco is vitally important to the Company as we look to progress to commercial supply there and to commence marine trials on board the MSC Leandra in H1 2024. Preparations for the MSC trials are now underway, with agreements expected to be signed by year-end. In addition, the Company expects to deliver commercial revenues from Valkor in the near future upon successful closure of Valkor's project financing.

The progress at QRF and Aquafuel with commercial partners to develop and trial bioMSAR™ formulations using cheaper and globally abundant biomass derived sugars provides a clear pointer to the future for the Company, since a lower carbon biofuel alternative will be demanded by the marine and industrial sectors.

To prepare for the expected growth of MSAR® and bioMSAR™ sales, a structured process is now underway to seek commercial partners that would allow the Company to be able to quickly scale up once the key project milestones have been met and we look forward to updating shareholders on this exercise in due course."

Photo credit: CHUTTERSNAP from Unsplash
Published: 28 November, 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