Marine fuel brokerage service provider, LQM Petroleum Services on Monday (14 September) said fast growing offshore windfarms expect low carbon service operations by support vessels, but supplying and handling biofuels is a challenge and the development of ammonia and hydrogen powered vessels still has a long way to go.
The global offshore wind industry continues to balloon, adding 6.1 GW capacity in 2019 and has continued to grow through the Covid-19 pandemic, it said.
In Europe, the sector has now reached a scale and size where the operational and contractual complexities are comparable to northern European oil and gas projects. The market is primed for take-off in the Asia Pacific region and significant projects off the US coasts are coming onstream.
The pressure is now on the owners and operators of support vessels who play a critical role in the supply chain to reduce emissions and ensure vessel reliability for the environmentally sensitive wind farm operators, explained LQM.
Panellists, including a bunker vessel operator, ship agent and bunker trader, at a recent LQM webinar discussed the challenges of safe ship-to-ship transfers, the future fuel mix and the difficulties facing smaller bunker traders in securing reliable lines of credit to customers.
Ammonia, along with methanol, hydrogen fuel cells and batteries all have the potential to play their part in the powering of marine engines – but in the short term oil-price volatility could cause headaches for bunker buyers, it noted.
“Biofuels and LNG are the leading lower carbon choices at the moment,” said LQM broker James Hoffman.
“I think the future will be a combination of green-tech and alternative fuels. There’s no definitive silver bullet to this problem, rather more of a silver buckshot.”
LQM noted currently biodiesel enables vessel operators to reduce their carbon footprint by 20-30% without the need for engine modifications. However, the veg-oil derived fuel needs to be stored carefully, is easily contaminated and throws up challenges of lubricity and its flow properties need monitoring.
“We are able to source biofuel supply, but there isn’t as much availability as there is for gas oil, so we need to plan ahead,” added Hoffman.
LQM Chief Executive Daniel Rose noted the banking industry is “falling out of love with the bunker sector.”
However, he stated the provision of credit for bunkers was one of LQM’s key value propositions and a number of smaller bunker traders were exiting the sector.
Photo credit: LQM Petroleum Services
Published: 16 September, 2020
Current low prices for road and aviation fuels in September could mean another increase of flashpoint off-spec cases for MGO when players start introducing the products back into the bunker stream.
Some bunker suppliers at various ports have even achieved their sales target for the year; the trend doesn't seem to be slowing down and suppliers are expecting a boom during end of September.
The company has entered a memorandum of agreement with Millenium Satu Ltd to acquire the 7,550 dwt oil tanker to increase service flexibility; vessel will be paid over an installment period of 36 months.
Deloitte & Touche JMs believe IPP has a viable claim against Dr Goh Jin Hian for breaches of his director’s duties to act with skill, care and diligence which he owned to IPP, states court document.
An earlier MPA notice outlined precautionary measures for personnel to observe when conducting marine refuelling operations at port in order to minimise the risk of contracting Covid-19.
Mok’s offence affected public confidence in the use of the MFM system onboard Singapore bunker tankers, and caused an embarrassment to the MPA, said Deputy Public Prosecutors.