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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.

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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

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Ammonia

Singapore: EMA, MPA shortlist two consortia for ammonia power generation and bunkering

Chosen consortia are Keppel’s Infrastructure Division and Sembcorp-SLNG, and the bunkering players in these consortia are Itochu Corporation, NYK Line and Sumitomo Corporation.

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RESIZED bunker tanker singapore

The Energy Market Authority (EMA) and the Maritime and Port Authority of Singapore (MPA) on Thursday (25 July) said they have shortlisted two consortia that will proceed to the next round of evaluations of proposals to provide a low- or zero-carbon ammonia solution on Jurong Island for power generation and bunkering. 

The two consortia were selected from a total of six that were earlier shortlisted in 2023 to participate in a restricted Request for Proposal (RFP), following an Expression of Interest (EOI) called in 2022. The bids were assessed based on the technical, safety and commercial aspects of their proposals. 

The two consortium leads are Keppel’s Infrastructure Division and Sembcorp-SLNG, and the bunkering players in these consortia are Itochu Corporation, Nippon Yusen Kabushiki Kaisha (NYK Line) and Sumitomo Corporation. The two consortia will proceed to conduct engineering, safety and emergency response studies for the proposed Project.

At the next phase, we will select one of the two bidders as the lead developer of the project. The lead developer will develop the end-to-end ammonia solution comprising (i) generating 55 to 65 MW of electricity from imported low- or zero-carbon ammonia via direct combustion in a Combined Cycle Gas Turbine; and (ii) facilitating ammonia bunkering at a capacity of at least 0.1 million tons per annum (MTPA), starting with shore-to-ship bunkering followed by ship-to-ship bunkering. 

Given the nascency of the technology and global supply chains, the Government will work closely with the appointed lead developer to implement the Project. We aim to announce the lead developer by Q1 2025.

The project is part of Singapore’s National Hydrogen Strategy launched in 2022, which outlines Singapore’s approach to develop low-carbon hydrogen as a major decarbonisation pathway as part of the nation’s commitment to achieve net zero emissions by 2050.

A key thrust of this strategy is to experiment with the use of advanced hydrogen technologies that are on the cusp of commercial readiness. Ammonia is currently one of the most technologically-ready hydrogen carriers with an established international supply chain for industrial use.

“If successful, the project will position Singapore as one of the first countries in the world to deploy a direct ammonia combustion power plant and support the development of ammonia bunkering for international shipping, EMA and MPA said.

“This will help to unlock the potential of low-carbon ammonia as a low-carbon fuel.”

 

Photo credit: Manifold Times
Published: 25 July 2024

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LNG Bunkering

China: River-sea LNG bunkering vessel named and delivered in Shanghai

The 14,000 cubic metre ship, “Huaihe Nengyuan Qihang”, was independently developed, designed and built by Hudong-Zhonghua Shipbuilding (Group) for Huaihe Energy Holding Group.

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China: River-sea LNG bunkering vessel named and delivered in Shanghai

China’s river-to-sea LNG bunkering vessel, which was built locally, was named and delivered in Shanghai on Monday (19 July), according to the Shanghai Association of Shipbuilding Industry (SASIC). 

The 14,000 cubic metre (cbm) ship, Huaihe Nengyuan Qihang, was independently developed, designed and built by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd for Huaihe Energy Holding Group as part of China’s "Gasification of the Yangtze River” project.

The ship is capable of travelling through the Nanjing Yangtze River Bridge all year round and has been dubbed a “Customised Yangtze River” LNG refuelling and transportation ship.

The ship is equipped with the B-type LNG containment system independently developed by Hudong-Zhonghua and authorised by a national patent.

According to SASIC, this was the first time such a system has been applied to a domestic LNG  refuelling and transportation ship, marking a major breakthrough in the B-type LNG containment system developed by China with independent intellectual property rights.

Related: China’s first river-sea LNG bunkering ship completes inaugural bunkering operation

Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.

 

Photo credit: Shanghai Shipbuilding Industry Association
Published: 25 July 2024

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Newbuilding

Singapore: EPS takes delivery of LNG dual-fuel bulker “Mount Ossa”

Firm said said the last vessel in its series of six 210,000 dwt DF LNG Newcastlemaxes chartered to Rio Tinto, was successfully delivered by New Times Shipbuilding.

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Singapore: EPS takes delivery of LNG dual-fuel bulker “Mount Ossa”

Singapore-based shipping firm Eastern Pacific Shipping (EPS) on Wednesday (24 July) said the last vessel in its series of six 210,000 dwt dual-fuel LNG Newcastlemaxes chartered to Rio Tinto, was successfully delivered.

The delivery of Mount Ossa marked the 21st vessel being delivered by New Times Shipbuilding to EPS.

“Despite global challenges, Rio Tinto and EPS have shown unparalleled resilience and a strong commitment to decarbonize shipping,” it said in a social media post.

“Over the past three years, these LNG-powered vessels have proven to be a sustainable choice, emitting 30% less than their conventional counterparts. We have successfully completed over 200 LNG bunkering operations, significantly reducing emissions across our fleet.”

“We celebrate our strong partnership with New Times Shipbuilding on this 21st milestone delivery to the EPS fleet, grateful to have 43 world-class vessels built and delivered, including those on order from New Times, which means we are only halfway through our esteemed collaboration.”

 

Photo credit: Eastern Pacific Shipping
Published: 25 July 2024

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