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SEA LNG: Compare ‘apples with apples’ to cut emissions and costs

Ship owners will lock in higher emissions and cost decarbonisation pathways if they choose alternative fuels which will not be available at commercial scale in near future.

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Global multi-sector industry coalition SEA-LNG on Thursday (7 July) released a framework for comparing the emissions and cost implications of adopting future fuel pathways and urges the industry to make like-for-like comparisons when discussing alternative marine fuels. It believes LNG as a marine fuel delivers immediate GHG benefits and a lower risk, lower cost, incremental pathway to zero emissions:

The industry is making newbuild investment decisions now that will impact greenhouse gas emissions today and for the next 25-30 years, the typical lifetime of a vessel. It is essential their assessments of alternative marine fuel pathways are made on a like-for-like, or “apples with apples” basis. Discussion of alternative fuels too often compares the green versions of ammonia and methanol with fossil, or grey, LNG. The reality is that all fuels share a common pathway from fossil-based versions, produced from natural gas to hydrogen-based, synthetic fuels. These synthetic fuels will only become available as and when sufficient renewable electricity and electrolysis capacity comes online to produce them.

Decarbonisation will not be a “big bang” process where the industry moves in a single step from fossil to zero-emission, renewable fuels. It is likely to take place incrementally as fuels are gradually decarbonised through the addition of low and zero-emission drop-ins.

Shared fossil feedstocks

This transition pathway is illustrated in Figure 1. Almost all alternative fuels today, including LNG, are fossil-based, in fact most are produced from natural gas. LNG is simply natural gas that has been cooled to the point it liquefies. Natural gas, and sometimes coal, is also the feedstock for almost all methanol, ammonia and hydrogen production.

Uniquely, fossil LNG offers significant greenhouse gas emissions reduction when used as a marine fuel compared with VLSFO – up to 23% on a full lifecycle (Well-to-Wake) basis according to an independent study by Sphera . By contrast, the use of fossil methanol, ammonia and (liquid) hydrogen results in emissions far higher than those associated with VLSFO because of the large amounts of energy required for their production.

A biofuel market

Emissions can be significantly reduced through the use of fuels derived from sustainable biomass. BioLNG is already commercially available in Europe as a marine bunker fuel today and has penetrated the heavy-duty vehicle road transportation sector in both Europe and North America. Biomethanol also exists in limited quantities, but mainly as an industrial chemical feedstock.

The ultimate, zero-emissions destination for all alternative fuels is for them to be synthesised from hydrogen produced from renewable electricity. Once this renewable hydrogen building block exists at scale it is possible to produce e-LNG, e-methanol, e-ammonia or e-hydrogen. It is important to note that around 70% to 80% of the cost of producing these e-fuels is associated with hydrogen production

We need to consider the pathway, not simply the destination

The implications for the climate and for shipowners can be best understood by looking at an example of investment decision. In Figure 2 we illustrate the case of a 14,000 TEU container vessel coming into operation in 2025, dual-fuelled with a 25-year lifespan and with renewable fuels becoming available at increasing scale from about 2030 onwards.

SEA LNG: Compare ‘apples with apples’ to cut emissions and costs

Modelling the emissions over the life of the vessel we can see that LNG offers immediate GHG reductions decreasing to zero-emissions by 2050. The bar chart shows an overall emissions reduction for the LNG pathway of more than 50% over the lifetime of the vessel, compared with VLSFO; for methanol and ammonia the corresponding reductions are 37% and 28%.

If we now look at the methanol and ammonia pathways, they also offer lifetime emissions reductions, but the reductions are smaller – 37% and 28% respectively – as they start from a “worse” place. Fossil methanol emissions are 14% higher than VLSFO on a full lifecycle basis; for ammonia the corresponding number is 47%. This is likely to mean owners and operators choosing methanol and ammonia pathways will be forced to continue using VLSFO, postponing emissions reduction for several years.

For methanol and ammonia to achieve emissions parity with LNG they will require blends of approximately 30% renewable methanol and 50% renewable ammonia immediately. The fossil versions of methanol and ammonia are already significantly more expensive than LNG and the renewable versions are likely to cost multiples more than their fossil equivalents. This will make the starting points for these pathways considerably more expensive than beginning with LNG. Note, this ignores any indirect costs associated with creating new bunkering infrastructure, which will be necessary for e-methanol, e-ammonia and e-hydrogen.

Waiting is not an option

In summary, committing to solutions which rely on alternative fuels which will not be available at commercial scale in a renewable form for the foreseeable future, means owners locking in higher emissions and higher cost decarbonisation pathways. LNG as a marine fuel delivers immediate GHG benefits and a lower risk, lower cost, incremental pathway to zero emissions.

Steve Esau, Chief Operating Officer, SEA-LNG said: “When looking at the advantages and disadvantages of alternative fuels, we should be assessing the characteristics of each fuel type on a like-for-like basis. Greenhouse gases in the atmosphere are a stock problem as well as a flow problem. The industry needs to consider the pathway to decarbonisation, not just the destination. Waiting is not an option.

“The consequences of delaying the shift away from fuel oils, which will cause faster rising cumulative emissions, meaning the challenge to reduce atmospheric greenhouse gases will be harder. Shipping needs to assess fuel pathways based on how they can deliver decarbonisation benefits now, and in the future, and also the likely cost to society of these pathways”.

 

Photo credit: SEA LNG
Published: 8 July, 2022

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LNG Bunkering

Singapore: FueLNG achieves 400th LNG bunkering operation milestone

Bunker tanker “FueLNG Bellina” successfully delivered LNG bunker fuel to “BYD Shenzhen”, the world’s largest LNG-fuelled car carrier at Singapore anchorage during its maiden voyage.

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Singapore: FueLNG achieves 400th LNG bunkering operation milestone

Singapore’s licensed LNG bunker supplier FueLNG on Thursday (15 May) announced the successful completion of its 400th LNG ship-to-ship (STS) bunkering operation in the republic.

FueLNG, a joint venture between Keppel Offshore & Marine and Shell Eastern Petroleum Pte Ltd, marked the milestone with bunker tanker FueLNG Bellina successfully refuelling BYD Shenzhen, the world’s largest LNG-fuelled car carrier, at Singapore anchorage during its maiden voyage.

“With a capacity of 9,200 vehicles and equipped with dual-fuel LNG propulsion, the BYD SHENZHEN represents the next generation of low-emission maritime transport,” it said in a social media post. 

Shell said it supported BYD Shenzhen on its maiden voyage as the supplier of the LNG bunker fuel. 

“Like all LNG dual fuel vessels, BYD Shenzhen is on the pathway to net zero emissions. She can take bio-LNG, and in the future e-LNG, in her fuel mix for further emission reduction and regulatory compliance,” it said in a separate social media post. 

 

Photo credit: Shell
Published: 16 May, 2025

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Biofuel

Hong Kong: CPN hits new record for China’s largest B24 biofuel bunkering operation

Chimbusco Pan Nation delivered 6,300 mt of B24-VLSFO in Hong Kong to boxship “XIN LOS ANGELES” on 15 May, exceeding its previous record of 5,500 mt delivered in February 2025.

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Hong Kong: CPN hits new record for China's largest B24 biofuel bunkering operation

Hong Kong-based bunker supplier Chimbusco Pan Nation Petro-Chemical (CPN) on Friday (16 May) said it has set a record for China’s largest B24 marine biofuel bunkering operation.

CPN said it delivered 6,300 metric tonnes (mt) of B24-VLSFO in Hong Kong to container ship XIN LOS ANGELES on 15 May. 

The supply exceeded CPN’s previous record of 5,500 mt delivered to the same ship in February 2025.

“This collaboration reinforces CPN’s ability to execute large-scale marine biofuel bunkering with precision and reliability,” the company said in a social media post.

“By consistently supplying large volumes of B24 marine biofuel, CPN supports reduced carbon emissions and sustainable shipping practices globally.”

Related: CPN achieves largest B24 bio bunker fuel delivery in Hong Kong and China

 

Photo credit: Chimbusco Pan Nation Petro-Chemical
Published: 16 May, 2025

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Alternative Fuels

St1 delivers first locally produced biomethane to Swedish maritime sector for bunkering

St1 and its venture St1 Biokraft delivered their own Swedish-produced liquefied biomethane to Terntank’s vessel “Tern Ocean” in a bunkering operation at Port of Gothenburg.

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St1 delivers first locally produced biomethane to Swedish maritime sector for bunkering

Finnish energy company St1 and its venture St1 Biokraft delivered their own Swedish-produced liquefied biomethane, also known as bio-LNG, to the local maritime sector for the first time, according to Port of Gothenburg on Thursday (15 May). 

Terntank’s vessel Tern Ocean was bunkered with the biomethane at the Port of Gothenburg. 

St1 and St1 Biokraft are now aiming to become large-scale suppliers of biomethane for shipping, while the Port of Gothenburg continues to pursue its goal of becoming Scandinavia’s primary bunkering hub for alternative fuels.

The bunkering operation recently carried out at quay 519 in the Port of Gothenburg was an important pilot test for St1 and St1 Biokraft as suppliers of biomethane to the maritime sector. The operation also served as a pressure test of the collaboration required across all parts of the value chain, with Terntank, gas infrastructure owner Nordion Energi, and the producers themselves all playing crucial roles.

“In order to accelerate the maritime sector’s transition, it is essential that all actors across the value chain pull in the same direction, cooperate, and translate ambitions into practice. We are pleased to have all of this in place at the Port of Gothenburg,” said Therese Jällbrink, Head of Renewable Energy at the Port of Gothenburg.

“Liquefied biomethane is an important part of the fuel palette that must be available to support the shipping industry’s transition. It is one of the fuels the Port of Gothenburg is working with within the framework of green shipping corridors, aimed at creating the conditions for fossil-free logistics chains. This bunkering operation brings us another step closer to our ambition of becoming Scandinavia’s primary bunkering hub for alternative fuels.”

St1 and St1 Biokraft have ambitions to become large-scale suppliers of liquefied biomethane for the maritime sector, with several new production facilities planned across Sweden.

In 2026, energy infrastructure company Nordion Energi will build a liquefaction facility for biomethane at the Port of Gothenburg, which will be connected to the West Sweden gas grid. With the facility in place, a new opportunity will be created for biomethane producers connected to the gas network to reach the maritime market.

“Once the liquefaction plant is completed, we will have a solid solution in place at the Port of Gothenburg. This is a strategic step towards our goal of scaling up and offering competitive liquefied biomethane to the shipping sector, thereby taking a leading position in this segment,” said Ted Gustavsson, Head of Value Chain at St1 Biokraft.

 

Photo credit: Port of Gothenburg
Published: 16 May, 2025

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