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Alternative Fuels

Report: Ship design and timeline planning key to green fuels conversion of box ships

Finds ‘Preparing Container Vessels for Conversion to Green Fuels’ report published by Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping.

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Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping on Friday (28 September) published a report ‘Preparing Container Vessels for Conversion to Green Fuels’ provides a technical, environmental, and techno-economic analysis of the impacts of preparing container ships for conversion to green fuels (i.e. methanol, ammonia).

The study found that although preparing for the transition to alternative fuels requires additional upfront investment, preparation can pay off in the long term with intelligent ship design and careful planning of conversion timelines. The conclusion of the study is as follows:

Building dual fuel and conversion-ready new builds typically increases newbuild CapEx by 1-16% of the cost for a standard fuel oil newbuild, depending on the planned alternative fuel, desired range, and preparation level. Total CapEx for newbuilding and conversions range from 1033% of the cost of a standard fuel oil newbuild (see Table 15).

post 54506 Table 15

The increased tank volumes required for methanol and ammonia mean that costs associated with lost cargo have a big impact on the total lifetime costs. In the twin island vessel design used here, lost cargo space can be reduced by placing tanks under the accommodation, but this must be done during the newbuild phase, which increases newbuild costs and the risks associated with committing to a particular future fuel.  When tank preparation is not possible and additional alternative fuel tanks must be added in cargo areas later, this has a large impact on costs from cargo losses.

We have analyzed the total costs of newbuilding, conversion and cargo losses for vessels with different preparation levels for each fuel and provided recommendations for newbuild readiness levels, depending on the desired future fuel, conversion timelines, and range (see Figure 15,16). The costs of conversion mean that for short conversion timelines (3-8 years), dual fuel vessels make economic sense.  In most cases where conversion is expected in a timeline of 8-10 years, and full range for the alternative fuel is required, some degree of preparation reduces the total costs.

post 54506 Figure 15
post 54506 Figure 16

Converting unprepared vessels only makes economic sense on longer timelines or where reduced range options reduce cargo loses.  However, the different preparation levels (1-3) we analyzed only had a small impact on newbuild and total costs and very little impact on the total lifetime cost. However, in general the earlier you expect to convert, the more you should prepare. The desired range after conversion, on the other hand, has a much larger influence on conversion CapEx, and therefore the total lifetime cost. Reduced range vessels may offer cost effective options for conversion, where feasible.

When converting from LNG to ammonia, some of the required installations for ammonia are already installed, and as a result the conversion costs are lower than converting from fuel oil. When compared with an ammonia-fuel oil dual fuel newbuild, the total CapEx add-on including LNG option and the conversion cost, is around 30% of a fuel oil newbuild price. Our study shows that the additional cost for the LNG option is recovered over the period before conversion to ammonia because of the assumed lower cost of LNG as fuel, however the fuel price of LNG compared with fuel oil has a big impact on this calculation. If an LNG vessel’s fuel tank is not prepared at newbuild phase, then conversion to ammonia is not feasible for this type of vessel.

Our emissions analyses showed that CO2 emissions from the conversion is minimal, at around 0.3 of the lifetime emissions of a fuel oil vessel.  If the vessel is replaced with a newbuild, instead of converted, the emissions related to building a new vessel, is equal to around 1.5 years emissions from operating on fuel oil or 1.7 years of operation on LNG. This shows that conversion is also a valid option from an emission reduction perspective.

Note: The complete report ‘Preparing Container Vessels for Conversion to Green Fuels’ can be obtained from the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping through the link here.

Photo credit: Venti Views on Unsplash
Published: 3 October, 2022

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Biofuel

NYK conducts first Japan bio bunker fuel trial on coal carrier for domestic power utility firm

Firm said it has started a biofuel test run on Noshiro Maru, operated by Tohoku Electric Power, marking the first time in Japan that a coal carrier has been used to test biofuel for a domestic power utility firm.

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NYK conducts first Japan bio bunker fuel trial on coal carrier for domestic power utility firm

Japanese shipping firm NYK on Monday (10 February) said it has started a biofuel test run on its coal carrier Noshiro Maru, which is operated by Tohoku Electric Power on 9 February.

This is the first time in Japan that a coal carrier has been used to test biofuel for a domestic power utility company. Mitsubishi Corporation Energy in the Keihin area facilitated the supply of biofuel for the vessel.

Biofuels are made from organic resources (biomass) of biological origin, such as agricultural residues and waste cooking oil, and are considered to produce virtually zero carbon dioxide (CO₂) emissions when combusted.

“Since they can be used in heavy-oil-powered ship engines, which are common on large merchant ships, biofuels are considered a key means of reducing greenhouse gas (GHG) emissions in the transition period from heavy oil to zero-emission fuels,” NYK said. 

“Using biofuel to reduce GHG emissions during sea navigation also contributes to reducing Scope 3 GHG emissions generated by transporting customers’ cargo.”

NYK added it will continue to focus on introducing biofuels and other next-generation fuels, and will contribute to reducing GHG emissions in our customers' supply chains while promoting decarbonisation in marine transport.

 

Photo credit: NYK
Published: 11 February, 2025

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Biofuel

IBIA welcomes IMO move to draft guidance change on carriage of bio bunker fuels

IBIA welcomed agreement by IMO’s Sub Committee on PPR 12 to draft Interim Guidance on the carriage of blends of biofuels and MARPOL Annex I cargoes by conventional bunker ships.

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The International Bunker Industry Association (IBIA) on Monday (10 February) said it submitted a document to IMO on the carriage of biofuels for supply to a ship for use as fuel oil on board that ship in November 2023.

This highlighted that as conventional bunker vessels were limited in carrying fuel oil of no more than 25% biofuel it presented a potential impediment to the global adoption of biofuels as fuel oil for ships and so to the ambition for the decarbonization of international shipping in the short term, as set out in the 2023 IMO GHG Strategy.

“IBIA therefore welcomes the agreement by IMO’s Sub Committee on Pollution Prevention and Response (PPR 12) to draft Interim Guidance on the carriage of blends of biofuels and MARPOL Annex I cargoes by conventional bunker ships,” it said on its website. 

The guidance allows conventional bunker ships certified for carriage of oil fuels under MARPOL Annex I to transport blends of not more than 30% by volume of biofuel, as long as all residues or tank washings are discharged ashore, unless the oil discharge monitoring equipment (ODME) is approved for the biofuel blend(s) being shipped. 

“The Interim Guidance is expected to be approved by IMO’s Marine Environment Protection Committee (MEPC 83) in April,” IBIA added. 

“IBIA’s membership represents stakeholders from across the global marine fuel value chain, and being able to draw on this technically strong and credible resource will, in its role of having consultative status to the IMO, mean that IBIA will continue to bring important matters to the attention of the wider IMO membership for due consideration.”

 

Photo credit: International Bunker Industry Association
Published: 11 February, 2025

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Alternative Fuels

Ammonia, methanol bunkering infrastructures among 39 projects to receive EU funding

Both projects aim to deploy a ship-to-ship bunkering system at the ports of Huelva and Algeciras respectively and include a 7500 m3 bunkering vessel each.

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Two projects involving ammonia and methanol bunkering infrastructures in the ports of Huelva and Algeciras in Spain were among 39 projects to receive funding under the first cut-off deadline of 2024-2025 Alternative Fuels Infrastructure Facility (AFIF) of the Connecting Europe Facility (CEF), according to the European Commission recently. 

The first ammonia bunkering infrastructure will be in Algecirasa as part of the Andalusian Green Hydrogen Valley. The project aims to deploy a ship-to-ship ammonia bunkering system in the port of Algeciras. 

It includes a 7500 m3 ammonia bunkering vessel, an on-shore ship loading system and the piping infrastructure for the transport of ammonia from the production site to the loading dock.  

Meanwhile, the first methanol bunkering infrastructure will be in Huelva, also as part of the Andalusian Green Hydrogen Valley. The project aims to deploy a ship-to-ship methanol bunkering system in the port of Algeciras. 

It includes a 7500 m3 methanol bunkering vessel, an on shore ship loading system and the piping infrastructure for the transport of methanol from the production site to the loading dock.

The coordinator for both bunkering projects is Spanish bunker and biofuel supplier CEPSA. 

The European Commission said the EU is allocating nearly EUR 422 million to the 39 projects that will deploy alternative fuels supply infrastructure along the trans-European transport network (TEN-T), contributing to decarbonisation. 

With this selection, the AFIF will support other projects including approximately 2,500 electric recharging points for light-duty vehicles and 2,400 for heavy-duty vehicles along the European TEN-T road network, 35 hydrogen refuelling stations for cars, trucks and buses, the electrification of ground handling services in eight airports and the greening of nine ports.

Following EU Member States’ approval of the selected projects on 4 February, the European Commission will adopt the award decision in the coming months, after which the results will become definitive. 

The European Climate, Infrastructure and Environment Executive Agency (CINEA) has started the preparation of the grant agreements with the beneficiaries of successful projects.

Note: The full list of successful projects can be viewed here.

 

Photo credit: Guillaume Périgois on Unsplash
Published: 11 February, 2025

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