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SIBCON 2022: KPI OceanConnect host Maritime Energy Transition Symposium 2022

Collaboration, transparency and building trust will be key drivers for success in view of increased regulation and pressure on the shipping industry to decarbonise.

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KPI OceanConnect on Thursday (20 October) said collaboration, transparency and building trust will be key drivers for success in view of increased regulation and pressure on the shipping industry to decarbonise and operate more sustainably that is rapidly transforming the marine fuel supply chain.

During Maritime Energy Transition Symposium 2022 at SIBCON 2022, discussions were held on how the maritime industry is transforming and how to make positive strides to create a more sustainable future.

More than 60 participants from various shipping segments joined the firm and its industry experts to share knowledge and learn about the latest environmental regulations, as well as pathways to initiating decarbonisation in the short-term, and develop long-term future fuel strategies.

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In the opening address, CEO Anders Grønborg took to the stage to talk about the current marine fuels landscape and KPI OceanConnect’s position as a financially strong partner with a global presence. 

“This position has recently been reinforced with the recent development of Bunker Holding’s Global Accounts unit becoming part of KPI OceanConnect,” the firm said. 

“This move further increases our capabilities to work in real partnership with our clients, providing expert and innovative counsel on how their businesses are being impacted by the market dynamics and working with them to implement solutions that are right for their operations.”

Joining the symposium to share their thoughts and opinions on the shipping industry’s decarbonisation journey were fellow sector leaders Eirik Nyhus, Director of Environment and Martin Christian Wold, Principal Consultant at DNV GL, as well as Sverre Bjorn Svenning, Director of Maritime Research at Fearnleys AS and Ed Glossop, Head of Sustainable Operations at Bunker Holding Group.

Each speaker presented various elements of the marine energy transition to share insights with the group. Eirik provided an overview of the regulatory pathway for shipping, including the emerging legalisation from both the International Maritime Organization and European Union level. 

Sverre spoke about the developments of technical solutions for the decarbonisation of shipping, and the measures ship owners and operators should be considering for their fleet. Martin delivered a presentation on the road to 2050, using key findings from the DNV Maritime Energy Outlook to 2050. Ed concluded the symposium by sharing insights into KPI OceanConnect’s recent developments and positioning to support our customers and the wider market through the energy transition.

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Alongside increased regulation, there was widespread agreement that the main drivers for decarbonisation include significant pressures from the financial community, cargo owners and charterers, who are all demanding more transparent and sustainable supply chains.

And while zero-carbon sources of energy (as well as more efficient vessels) is central to delivering this, owners and operators need to act now in developing pathways to decarbonisation. 

Achieving this will require collaboration and having the right partners to support the development of the most effective and impactful fuel and energy procurement strategy for both now and the long-term. 

“This is where KPI OceanConnect excels. We are confident that with our knowledge and experience, we will help all our current and future customers manage the complexities of the industry’s energy transition,” the company said. 

Related: Bunker Holding’s key account management unit BOGA and KPI OceanConnect to join forces

Manifold Times is an official media partner of SIBCON 2022; a series of articles related to the event written by the Singapore bunkering publication are as follows:

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RelatedSIBCON 2022 Interview: ExxonMobil to invest more than USD $15bn on GHG reduction initiatives by 2027
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RelatedSIBCON 2022 Interview: Digitalisation in bunkering ops, can lower costs and enable decarbonisation, says StormGeo
RelatedSIBCON 2022 Interview: Co-Convenors offer insights into Singapore’s upcoming Digital Bunker Document Standard
RelatedSIBCON 2022 Interview: MFMs relevant for custody transfer of future liquid-based marine fuels, confirms Endress+Hauser
RelatedSIBCON 2022 Interview: Clyde & Co discusses handling of bunker fuel quality disputes, alt fuels contracts
RelatedSIBCON 2022 Interview: Singapore Bunkering TC Chairman shares republic’s direction on future marine fuel

 

Photo credit: KPI OceanConnect
Published: 25 October, 2022

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Alternative Fuels

WEF: South Africa has great potential as a production and bunkering hub for zero-emission bunker fuels

Report highlighted a clear demand signal for bunkering ZEF in selected South African ports will be needed to realise the country’s opportunity to become a global hotspot for zero-emission shipping.

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WEF: South Africa has great potential as a production and bunkering hub for zero-emission bunker fuels

South Africa has great potential as a production and bunkering hub for zero-emission shipping fuels – but it needs global demand to get the ball rolling, according to a report by the World Economic Forum recently.

The white paper, titled Decarbonising South Africa’s Shipping and Trucking Sectors, presented the findings and recommendations from a First Movers Coalition workshop held in South Africa in March 2024, which focused on decarbonising the country’s shipping and trucking sectors and developing its potential to produce green hydrogen.

The report said more than 200 dual-fuel methanol vessels have been ordered globally, requiring over 20 Mt of e-methanol fuel per annum to achieve 100% zero-emission operability.

However, fuel availability at that scale is expected to be challenged until at least 2030-35. This demand creates an opportunity for South African producers to secure early customers and sign advance offtake agreements, providing certainty for new projects and improving investment prospects.

The study noted that ammonia also brings advantages as a zero-emission fuel (ZEF), such as high carbon-emission savings, unlimited feedstock (nitrogen) availability and existing logistical infrastructure around the globe. 

While ammonia engines will reach the market from 2025 at the earliest, major carriers like Trafigura and BHP are already placing orders for dual-fuel ammonia vessels.

The World Bank has conducted a pre-feasibility study on establishing green shipping fuel value chains at the ports of Boegoebaai and Saldanha Bay. The study identifies ammonia as the preferred ZEF production choice for South Africa, due to the scarcity of biogenic carbon dioxide to produce methanol. 

“Most of the fuel’s cost comes from hydrogen feedstock – but by leveraging abundant wind and solar supply, the two ports will be able to generate renewable electricity at scale to produce competitive green hydrogen for local industry use (e.g. green steel) and to produce green ammonia for export to the global shipping industry,” the report said.

On bunkering, the report stated political disturbance and security risks in the Red Sea during 2023 to 24 forced many shipping operators to abandon the Suez Canal and re-route their cargo around the Cape of Good Hope. 

Even without those risks, operators shipping lower value or less time-critical cargo may use the Cape route rather than the more expensive Suez Canal, adding two weeks to a ship’s voyage time from Asia to Europe.

“This extra travel time – plus the lower density of zero-emission fuels – could compel vessels running on ZEF to bunker in South Africa before reaching Europe,” it said. 

“Access to zero-emission fuels therefore opens up the possibility of South African ports positioning themselves as bunkering hubs to supply passing shipping traffic.”

“Furthermore, the potential for South Africa to produce e-methanol and e-ammonia has triggered plans to develop ‘green corridors’ – effectively routes connecting ports for vessels to sail on ZEF.

However, the report highlighted a clear demand signal for bunkering ZEF in selected South African ports will be needed to realise the country’s opportunity to become a global hotspot for zero-emission shipping.

“As local demand may take some years to build up, certainty from global demand will play a key role. It is also important to assess different uses for hydrogen beyond maritime fuel, to determine how multi-sectoral offtake can improve the business case for potential project developers,” it said.

Note: The full white paper, titled ‘Decarbonising South Africa’s Shipping and Trucking Sectors’, can be viewed here.

 

Photo credit: World Economic Forum
Published: 24 June, 2024

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Biofuel

DB Schenker to ship Avolta cargo between Europe and US with bio bunker fuel

All containers that Avolta will move on the Barcelona – Miami route, using biofuel, will be shipped on low emission through application of waste-based marine biofuels and additional units of sustainable marine biofuel.

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DB Schenker

Travel retailer Avolta recently said it entered an agreement in Spain with logistics service provider DB Schenker for the transport of goods using marine biofuel between Europe and the United States.

From now on, all containers that Avolta will move on the Barcelona - Miami route, using biofuel, will be shipped on low emission through the application of waste-based marine biofuels and additional units of sustainable marine biofuel, to achieve additional compensation of the biofuel’s upstream emissions.

“This biofuel switch could prevent over 150 tons of CO2e Well-to-Wake emissions per year, based on Avolta’s 2023 container volume on this route, reducing up to 84% of the CO2 emissions,” the firm said.

The fuel used is Used Cooking oil methyl ester (UCOME) and is based on renewable and sustainable sources, mainly waste cooking oil. 

The application will be guided by the Book & Claim System, a set of principles that have been developed through a global, multi-stakeholder process with third-party validation to ensure that the use of this chain of custody model has full traceability and credibility, as well as a demonstrable climate impact.

Camillo Rossotto, Chief Public Affairs & ESG Officer Avolta, said: “We are taking a significant step forward towards decarbonising our shipments and route transportations.”

“This agreement represents the starting point of the transitioning to biofuel for ocean freight which will contribute to decarbonising our logistic emission. Our company's commitment to sustainability is firm and long-term and, as proof of this, we are planning to increase the volume of containers transported using biofuel, advancing in the sustainable and low-emission transportation industry."

Miguel Ángel de la Torre, director of maritime transport at DB Schenker in Iberia, said: "Our mission is to help, facilitate, and guide our customers in the sustainable transformation, and on this occasion, we are doing so by offering this biofuel so that they can convert their freight transport into low-emission transport.”

“In this way, our customer Avolta is not only pioneering and helping to reduce emissions but is also ahead of the new regulations and associated benefits that will be tightened in the coming years.”

 

Photo credit: DB Schenker
Published: 24 June, 2024

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LNG Bunkering

MAN Energy Solutions rejoins SEA-LNG coalition

‘MAN ES, alongside other members of the SEA-LNG coalition, are making great strides in tackling methane slip in engine technologies where it still exists,’ says Peter Keller, SEA-LNG chairman.

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MAN Energy Solutions rejoins SEA-LNG

Global multi-sector industry coalition SEA LNG on Thursday (20 June) announced that MAN Energy Solutions (MAN ES) will rejoin its coalition.  

As a provider of flexible and powerful propulsion solutions for LNG marine applications, SEA LNG said MAN ES caters to the growing demands of the shipping industry for LNG propulsion and equipment across dual fuel LNG-powered ships, LNG carriers, FRSUs, LNG feeder and bunker vessels, as well as for gas supply infrastructure. All MAN ES technology is fully compatible with net-zero biomethane and e-methane.

“MAN ES’s technical expertise adds to the technical skills and experience of SEA-LNG members, already achieving reductions in greenhouse gas (GHG) emissions. MAN ES’s two-stroke high-pressure engine technology is one of those delivering virtually no methane slip in the LNG combustion process today,” it said.

In addition, MAN ES is making significant progress in eradicating methane slip in its four-stroke engines. Over the last ten years, MAN ES has already been able to halve methane slip in its four-stroke gas engines and is aiming for a further 20% reduction by continuously improving the combustion process.

MAN ES's IMOKAT II project has secured investment from the German Federal Ministry for Economics and Climate Action to develop an after-treatment technology to further reduce methane slip from its four-stroke engines, ultimately aiming for a 70% reduction of methane emissions at 100% load.  

Stefan Eefting, Senior Vice President and Head of MAN PrimeServ Germany at MAN Energy Solutions, said: “While shipping remains the most environmentally-friendly form of transport, the many vessels powered by our technology means that MAN Energy Solutions has a special responsibility to help move the industry to net-zero; we are very happy to work with like-minded partners in achieving this.”

“Our unique ability to assess the future-fuel mix is, in great part, based on our dual-fuel engine development, which promotes LNG and other alternative green fuels that have a key role to play on the path to decarbonisation.” 

Peter Keller, SEA-LNG chairman, said: “The shipping industry’s decarbonisation drive is at a tipping point as global and regional regulations begin to impact shipowners financially.”

“As these regulatory changes continue to be felt, LNG as a marine fuel, and its decarbonisation pathway through liquified biomethane and e-methane, offers the most practical and realistic solution. The LNG solution is playing a critical role in enabling emissions reductions, starting today.”

“If we want to continue to unlock this pathway’s potential, we need the right expertise and MAN ES’s experience and insights will be critical to ensuring LNG, biomethane and e-methane firmly take their place in the basket of alternative marine fuels.”

Keller continued: “We are proud to represent the entire LNG value chain, and the addition of MAN ES only adds to our roster of industry-leading first movers to promote the LNG pathway. In particular, MAN ES, alongside other members of the SEA-LNG coalition, are making great strides in tackling methane slip in engine technologies where it still exists. With constant advances in technology, we are confident the issue of methane slip can be solved within this decade.” 

 

Photo credit: MAN Energy Solutions
Published: 24 June, 2024

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