Alternative Fuels

Report: Transition to new bunker fuels presents an economic opportunity for Canada

Oceans North, Arup, VMCC, and C40 published a new report to shed light on challenges when it comes to decarbonising shipping on Canada’s West Coast as well as some of the solutions.

Published

1 year ago

December 22, 2023

Admin

Report: Transition to new bunker fuels presents an economic opportunity for Canada

A new report from Oceans North, Arup, the Vancouver Maritime Centre for Climate (VMCC), and C40 Cities Climate Leadership Group (C40) published on Monday (18 December) has shed light on the challenges when it comes to decarbonising shipping on Canada’s West Coast—as well as some of the solutions.

The report, New Energy Markets in West Coast Shipping, is the result of a workshop held earlier this fall in Vancouver that brought together stakeholders from across the marine supply chain to discuss how best to advance the industry’s energy transition. They discussed linking clean energy projects with the marine value chain and figuring out how energy export projects can be leveraged to decarbonise ports, shipping and marine transportation.

The novel approach included not only ports and shipping representatives, but also energy producers, clean tech entrepreneurs and government officials.

“Despite a universal understanding that the transition to new fuels will require unparalleled cross-value collaboration, there is a disconnect between energy producers and maritime sector offtakers,” Brent Dancey, the Director of Marine Climate Action at Oceans North, said.

“By getting everyone in a room together, we were really able to dig into what needs to happen next and create new relationships up and down the marine fuel supply chain.”

The shipping industry produces roughly 3% of the world’s emissions, and that number is growing. Ships need to switch to low- and zero-emission bunker fuels in order to fight climate change and reach our emissions targets.

The transition to new marine fuels presents an economic opportunity for Canada—an emerging producer and exporter of green hydrogen and ammonia—by leveraging these major projects to supply domestic and international ships. But despite announcements of new “green shipping corridors”—routes that link two or more ports with access to clean fuels—the necessary infrastructure to support maritime decarbonization has yet to be created.

One of the report’s key conclusions is that ships and ports can play an important role in helping the broader zero-emission fuel ecosystem develop on the West Coast. Zero-emission bunker fuels are currently expensive to make, and producers contemplating an investment in new infrastructure need to know that the demand is there. Ports and ships are not just a way of transporting that fuel to market but can also help aggregate zero-emission marine fuel demand to justify investments in fuel production infrastructure.

“The capital cost and scale required for economical fuels production will require debt financing and firm fixed-price offtake of the fuels for the full life of the facility,” Andy Ralph, Americas Hydrogen Lead at Arup, said.

“To ramp up to match the supply to maritime demand, industry, government, and the financial sectors will need to work together to chart a pathway to first-generation zero-emission fuel projects that are competitive, profitable, and timely.”

The current cost of zero-emission fuels and technologies is also a concern for consumers, and a major issue many participants identified was the importance of government financial support and community partnerships to fund demonstration projects, bring down prices, and help achieve scale quickly. “Just like land-based transportation, marine industries will need help to transition, and cities can be indispensable partners in unlocking critical investments in urban climate infrastructure,” Juvarya Veltkamp, Senior Advisor to C40 Cities’ Green Ports Forum, said.

“The maritime sector competes with other sectors for priority access to feedstocks for zero-emission fuels, and a joined-up strategy with local communities will help to effectively communicate the unique industry needs to policymakers.”

Veltkamp stressed that allyship with cities on maritime decarbonisation can help to emphasise the local benefits of reducing emissions from global supply chains, while developing pathways for green jobs and a just transition.

Since the Vancouver workshop occurred, Canada announced the launch of the USD 165.4 million Green Shipping Corridor Fund, which will support the development of clean fuels and technologies at major ports as well as the development of zero-emission vessels. Additional policy changes such as tax incentives could help further signal the government’s commitment to marine decarbonization and provide certainty across the supply chain.

In the meantime, open lines of communication are critical to ensure that all the necessary actors are aligned, and the report’s authors are committed to convening more discussions. “The world has agreed to transition away from fossil fuels, and Canadian ports and shipping have an important role to play,” says Dancey. “But in order to make it a reality, we need a coordinated approach.”

Note: The New Energy Markets in West Coast Shipping Report can be downloaded here.

Photo credit: Oceans North
Published: 21 December, 2023

Up Next

Global Risk Management on Red Sea crisis: Demand for bunker fuels will increase due to longer voyages

Don't Miss

Performance Shipping orders LNG-ready, scrubber fitted LR2 tanker duo

Biofuel

Hercules Tanker Management vessel “Mount Kibo” takes on B30 bio bunker fuel

HTM said its tanker was successfully supplied with B30 bunkers by tanker “Hercules Sky”, another HTM-owned vessel and operated by Peninsula, marking the first biofuel supply to the HTM fleet.

Published

2 hours ago

April 30, 2025

Admin

Hercules Tanker Management vessel “Mount Kibo” takes on B30 bio bunker fuel

Hercules Tanker Management (HTM) on Tuesday (29 April) announced that its tanker Mount Kibo has been successfully supplied with B30 bunkers by tanker Hercules Sky, another HTM-owned vessel which is operated by Peninsula.

The operation marked the first biofuel supply to the HTM fleet.

HTM is the shipping venture launched last September by John A. Bassadone, founder and CEO of independent marine fuel supplier Peninsula.

HTM said the operation carried out in the Strait of Gibraltar aligns with the recent discussions at MEPC 83, where key decisions were made to advance maritime decarbonisation, including new fuel standards and a global pricing mechanism for emissions.

“Additionally, this initiative supports the objectives of the FuelEU Maritime Regulation, which promotes the use of renewable, low-carbon fuels and clean energy technologies for ships,” it said.

“By utilising biofuels, we are contributing to the reduction of greenhouse gas emissions and supporting the industry's transition towards cleaner energy solutions.”

Photo credit: Hercules Tanker Management
Published: 30 April, 2025

Alternative Fuels

DNV: Seven steps to obtain approval for ammonia- and hydrogen-fuelled ships

DNV summarizes how shipowners can apply a practical, structured approach to gaining approval for ammonia- or hydrogen-fuelled ships as both are gradually emerging as suitable bunker fuels.

Published

2 hours ago

April 30, 2025

Admin

Classification society DNV on Monday (28 April) released an article summarizing how shipowners can apply a practical, structured approach to gaining approval for ammonia- or hydrogen-fuelled ships.

From engaging early with flag administrations to addressing design risks, training crews, and managing bunkering safely, DNV described seven essential steps to receive approval:

The paper – Safe introduction of alternative fuels: Focus on ammonia and hydrogen as ship fuels – offers a structured pathway for shipowners to achieve approval through IMO’s alternative design approval (ADA) process.

Seven steps to obtain approval for ammonia- and hydrogen-fuelled ships

“We outline seven steps to assist shipowners and other stakeholders in obtaining approval and safely deploying ammonia- and hydrogen-fuelled ships in today’s immature regulatory environment,” says Linda Hammer, Principal Consultant, Environment Advisory at DNV and lead author of the white paper. “The regulatory path is certainly complex, but the steps and safety measures in the paper add up to a clear, achievable pathway to ship approval and safe operations. It also explains how DNV’s support can significantly ease this process through its tailored rule sets and learnings from pilot projects.”

t1 ind 586 steps to obtain approval (1)

Understanding ADA phases: From initial design to final approval

IMO’s IGF Code (International Code of Safety for Ship Using Gases or Other Low-flashpoint Fuels) currently covers natural gas but not ammonia or hydrogen. Without detailed regulations, IMO’s risk-based ADA process (MSC.1/Circ.1455) is used. It involves demonstrating that the ship’s safety level is equivalent to that of conventional oil-fuelled vessels.

t4 ind 586 milestones in the two phases (1)

ADA has two main phases. A preliminary design approval requires a hazard identification (HAZID) study, developing a preliminary risk assessment, and defining preliminary risk-control measures and safety strategies.

Phase two, final design approval, starts with refining the design with detailed technical and safety documentation, then making a final risk assessment, addressing integration and operation-specific concerns. Then come complete system integration testing and submitting findings to the flag administration.

Role of class and flag administrations in approval process

As the IMO regulatory framework progresses towards eventually amending the IGF Code, classification societies like DNV can give shipowners a head start in designing vessels by issuing class certificates and providing prescriptive rule frameworks to support ADA.

t2 ind 586 the status of the development of imo safety regulations

Flag administrations enforce statutory regulations and have the final say on approvals. Early and active engagement with the relevant flag administration is therefore the key to clarifying approval expectations and streamlining ADA.

Subject to flag administration acceptance, the DNV rules can be applied as the flag administration’s approval basis or to significantly reduce the complexity of ADA.

Simplifying ship approval: DNV’s rules for ammonia and hydrogen fuels

DNV’s classification rules for ammonia and hydrogen (i.e. the “Gas fuelled ammonia” notation published in 2021 and the 2024 “Gas fuelled hydrogen” notation) provide structured, prescriptive requirements as far as possible to simplify ADA. Applying them helps reduce uncertainty in flag administration approval, streamlines design focus by aligning with expected risk assessments, and provides predictability to shipowners, ship designers and shipyards.

The paper describes step-by-step actions for obtaining approval. First, engage DNV and the flag administration early to clarify the approval basis. “DNV can help owners and yards in the initial contact with the flag administration to obtain necessary clarification regarding the approval scope and process,” says Hammer.

Second, align the design with DNV rules to ensure it provides a strong technical basis for risk evaluation. Third, tap into DNV’s extensive and growing experience from prior projects to anticipate what risk studies and documentation may be needed.

The paper also discusses measures to manage the new technical, human and organizational risks that both fuels bring compared to conventional fuels. DNV’s dedicated ship rules for each fuel type outline technical requirements and mitigation systems to integrate during design and operation.

Note: DNV’s full article on ‘Practical guide for approval of ammonia- or hydrogen-fuelled ships’ can be read here.

Photo credit: DNV
Published: 30 April, 2025

Methanol

Ofiniti to roll out e-BDNs for Golden Island methanol bunkering operations in Singapore

Ofiniti will issue electronic Bunker Delivery Notes, based on the recently published Technical Reference 129 on Methanol Bunkering, across Golden Island’s newbuilds and part of its existing fleet.

Published

24 hours ago

April 29, 2025

Admin

Ofiniti to roll out e-BDNs for Golden Island methanol bunkering operations in Singapore

Ofiniti, a provider of digital solutions for maritime bunker operations, on Tuesday (29 April) said Singapore bunker supplier Golden Island Pte Ltd will adopt Ofiniti platforms for its expanding fleet operations.

Ofiniti said the move will lay the foundation for a digital multi-fuel future with Golden Island’s four new chemical tankers on order and Singapore-flagged bunker tanker Golden Antares, which will soon enter service.

As part of the transition, Ofiniti will roll out electronic Bunker Delivery Notes (e-BDNs), based on the recently published Technical Reference (TR) 129 on Methanol Bunkering, across Golden Island’s newbuilds and part of its existing fleet.

The Maritime and Port Authority of Singapore (MPA) and Enterprise Singapore (EnterpriseSG), through the Singapore Standards Council (SSC), on 10 March published TR 129 to provide a comprehensive framework for the safe and efficient use of methanol as an alternative fuel for bunkering operations.

Kenny Yap Song Jin, Low Carbon Solutions, Golden Island, said: “Launching our methanol bunkering operations is a major milestone, not just for Golden Island, but for Singapore’s journey toward multi-fuel readiness.

“By combining innovative low-carbon fuels with digital transparency, we set a new benchmark for safe, efficient, and sustainable marine fuel delivery.”

Ofiniti said it has supported suppliers through every stage of the industry’s transition, from conventional fuels to LNG, biofuels, hydrogen, and now, supporting methanol.

Tue Nielsen, Chief Executive Officer, Ofiniti, said: “I’m proud to welcome Golden Island to Ofiniti’s platforms.

“Their move signals a strong trust in our ability to support next-generation operations, and it reflects a broader shift in the market towards digital solutions built specifically for the realities of maritime fuels today and tomorrow.

“We are customer-obsessed, always trying to build in resilience to the way we are doing business.”

Manifold Times previously reported Golden Island’s plans to start bunkering trials of green methanol with its newbuild Singapore-flagged 7,999 dwt IMO type 2 bunker tanker from July.

Golden Antares was scheduled to depart a Chinese shipyard by late April and will lift green methanol produced by Hong Kong and China Gas Company Limited (Towngas) before returning to Singapore to begin bunkering trials.

In April, Ofiniti welcomed bunkering and marine fuel solutions provider Global Fuel Supply (GFS) to its FuelBoss platform as one of its newest customers.

GFS said it was proud to be the first physical supplier in West Africa to launch fully digitalised bunker operations with electronic bunker delivery note (e-BDN) via the FuelBoss platform.