Alternative Fuels

Singapore reiterates commitments towards developing LNG and bio bunker fuels

Two Singapore ministers recently spoke about the bunkering industry in the republic at two conferences and reiterated Singapore’s support towards LNG and biofuels.

Published

1 year ago

September 7, 2023

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Two Singapore ministers recently spoke about the bunkering industry in the republic at two separate conferences and reiterated Singapore’s support towards the development of LNG and bio bunker fuels.

Manpower Minister and Second Minister for Trade and Industry Dr Tan See Leng said Singapore has developed a strong energy and LNG ecosystem over the years.

“We have established ourselves as a leading LNG trading and bunkering hub in Asia. We have 60 LNG traders operating in Singapore, including the world’s top 10 global energy traders,” Tan said in his speech at the opening ceremony of the Gastech 2023 Conference on Tuesday (5 September).

“In 2022 alone, about USD 240 billion worth of LNG trades flowed through Singapore, equivalent in value to about 50% of Singapore’s GDP.”

He added Singapore has also built up its infrastructure with Singapore’s LNG terminal can handle up to 9.6 million tonnes per annum of throughput capacity.

“Our upcoming LNG bunkering network will support the growth of LNG as a marine fuel,” he said.

Tan explained that companies in Singapore have also innovated to deploy new solutions and create new business models that support the entire LNG ecosystem.

“For example, in January this year, Seatrium delivered the first of a series of LNG hybrid tugs for use in Singapore’s waters,” the minister said.

“The vessel is the first of its kind for operations in Singapore using a pure LNG engine and is supported by an innovative battery power system that allows for emission-free operations during idling and low-speed transit. “

“Seatrium has commissioned the design and the building of the world’s first LNG hybrid tug in 2018 and continues to build its capabilities to ride the global energy transition.”

He concluded that Singapore’s investment in the energy and LNG ecosystem has seen promising results.

“We are committed to invest further and grow further so that Singapore can better serve the region's energy needs.”

low yen ling

Meanwhile, Minister of State for Trade and Industry Low Yen Ling said Singapore is well-positioned to support and grow new trade flows for renewable fuels such as biofuels.

She said one of Singapore’s key goals and focus is to grow new trade flows for renewable fuels.

“The global energy transition and our 2050 net-zero ambition will continue to spur greater demand for greener fuels. Singapore is well poised to facilitate and grow these new flows,” she said in her speech at the Asia Pacific Petroleum Conference (APPEC) 2023 on 4 September.

“For example, in the area of biofuels, Singapore is located near regional feedstock resources and home to a growing network of counterparties. Over 60 companies, including energy majors such as ExxonMobil and Respol, and ADM and Bunge in the agri-commodities sector, are taking hold of this advantage by trading biofuels from Singapore.”

“Singapore’s efficient refining and processing capabilities, as well as robust maritime infrastructure, allows us to import biofuels for refining and re-export. This synergy presents an opportunity for Singapore to develop strengths in both biofuels processing and trading, and solidify our position as an energy hub.”

Low added Singapore has made good progress in adopting renewable fuels in the aviation and shipping industries.

“In the shipping industry, the Maritime Port Authority of Singapore (MPA) has been taking active steps to facilitate the use of cleaner fuels such as LNG, biofuels, ammonia, hydrogen and methanol to drive decarbonisation efforts. To date, over 140,000 tonnes of biofuels blends have been supplied across more than 90 biofuels bunkering operations,” she added.

To facilitate the transition to cleaner fuels, Low said the republic is also exploring further opportunities in biofuels, and working on harmonising standards to reduce barriers to the trade of biofuels.

“In consultation with industry and researchers, the MPA has also developed a provisional biofuel standard on the specification of marine biofuel for blends up to 50%. As there is presently no international standard for the quality of biofuels for bunkering, this provisional national standard aims to support the growth of biofuel bunkering and facilitate the adoption of greener fuels to meet our net-zero goals.”

Photo credit: Dr Tan See Leng / Low Yen Ling
Published: 7 September, 2023

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LNG Bunkering

BV VeriFuel participates in first LNG bunkering operation in Shanghai

VeriFuel, Bureau Veritas’ Marine Fuel Services programme designed to facilitate future developments of the marine fuel industry, successfully participated in its first LNG bunkering operation in Shanghai.

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September 10, 2024

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BV VeriFuel participates in first LNG bunkering operation in Shanghai

VeriFuel, Bureau Veritas' Marine Fuel Services programme designed to facilitate the future developments of the marine fuel industry, last week celebrated a milestone in LNG bunkering in Shanghai.

VeriFuel successfully participated in its first LNG bunkering operation about two weeks ago in Shanghai.

“This marks a significant step forward as we expand our service offerings to meet the growing demand for sustainable fuel solutions,” it said in a social media post.

“With more deliveries already on the way, our new service line is ready to support your LNG bunkering needs. We look forward to partnering with you on this exciting journey towards a more sustainable future.”

According to Bureau Veritas, VeriFuel provides the latest technology in order to monitor global marine fuel activities.

In 50 countries, VeriFuel provides the inspection services that are performed by in-house bunker surveyors based on uniform procedures and reporting.

Photo credit: VeriFuel
Published: 10 September, 2024

Methanol

Methanex to acquire OCI Global international methanol business

Transaction includes OCI’s interest in two methanol facilities in Beaumont, Texas, a low-carbon methanol production and marketing business and a currently idled methanol facility in Netherlands.

Published

16 hours ago

September 10, 2024

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Methanex to acquire OCI Global international methanol business

Methanex Corporation (Methanex) on Sunday (8 September) announced that it has entered into a definitive agreement to acquire OCI Global’s (OCI) international methanol business for USD 2.05 billion.

The transaction includes OCI’s interest in two world-scale methanol facilities in Beaumont, Texas, one of which also produces ammonia. The transaction also includes a low-carbon methanol production and marketing business and a currently idled methanol facility in the Netherlands.

“This is a unique opportunity to create value by acquiring two highly attractive North American methanol assets that will further strengthen our global production base and we expect it will be immediately accretive to free cash flow per share,” said Rich Sumner, President and Chief Executive Officer of Methanex.

“The Beaumont plants benefit from access to North America’s abundant and favourably-priced supply of natural gas feedstock, and are expected to increase our global methanol production by over 20 percent.”

“We believe the transaction will provide significant long-term value to Methanex shareholders while aligning with our strategic objectives of industry leadership, operational excellence, and financial resiliency,” said Mr. Sumner.

“From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing.”

Nassef Sawiris, Executive Chairman of OCI, added, “We are pleased with the opportunity to achieve a significant ownership position and are highly confident in Methanex’s ability to create enduring value for shareholders. As the global leader committed to safety and operational excellence, we identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023.”

As part of the transaction, Methanex will acquire the following:

A methanol facility in Beaumont, Texas with an annual production capacity of 910,000 tonnes of methanol and 340,000 tonnes of ammonia. This plant was restarted in 2011 and since that time the plant has been upgraded with USD 800 million of capital for full site refurbishment and debottlenecking.
A 50 percent interest in a second methanol facility also in Beaumont, Texas, operated by the joint venture Natgasoline LLC (Natgasoline). The Natgasoline plant was commissioned in 2018 and has an annual capacity of 1.7 million tonnes of methanol, of which Methanex’s share will be 850,000 tonnes.
OCI HyFuels, which produces low-carbon methanol and sells industry-leading volumes with trading and distribution capabilities for renewable natural gas (RNG). With nine years of experience in the low-carbon methanol business and with an array of blue-chip customers, this will enhance Methanex’s existing Low Carbon Solutions function with additional expertise in this developing segment.
A methanol facility in Delfzijl, Netherlands with an annual capacity to produce 1 million tonnes of methanol. This facility is not currently in production due to unfavourable pricing for natural gas feedstock.

Closing of the transaction is expected in the first half of 2025. The transaction has been approved by the boards of directors of both companies and is subject to receipt of certain regulatory approvals and other closing conditions including TSX approval for the issuance of Methanex shares to OCI.

The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction.

Photo credit: OCI Global
Published: 10 September, 2024

Alternative Fuels

Corvus Energy gas-safe marine fuel cell system receives type approval by DNV

Firm said the system is the first Fuel Cell System designed to be inherently gas-safe, making it the safest fuel cell system in the market.

Published

16 hours ago

September 10, 2024

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Corvus Energy gas-safe marine fuel cell system receives type approval by DNV

Corvus Energy, supplier of energy storage systems (ESS) for maritime applications, on Wednesday (4 September) announced that the Corvus Pelican Fuel Cell System has received Type Approval from classification society DNV.

The system, which was developed through the three-year-long H2NOR project, is the first Fuel Cell System (FCS) designed to be inherently gas-safe, making it the safest fuel cell system in the market.

Corvus Energy said receiving type approval from DNV confirmed that the Corvus Pelican Fuel Cell System meets the most stringent performance and safety standards required by the maritime industry.

Olaf Drews, Head of Engines & Pressurized Equipment Maritime, said: “It is a special fuel cell system, because the Pelican uses nitrogen for inerting of the fuel cell space.”

“It is the first fuel cell system that uses this technology and this brings it to a very preferred safety level. This is a milestone, and we look forward to the first ship project.”

Despite technology improvements and advancements in battery electric vessels, most vessels cannot achieve zero-emission operations for extended periods of time using batteries alone. For vessels on longer routes and vessels that are unable to charge often enough, we need to add clean fuel and fuel cells to enable extended zero-emission capabilities.

CEO of Corvus Energy, Fredrik Witte, said: “Toyota’s unsurpassed knowledge in developing high-quality and efficient fuel cells, in addition to the strong collaboration and high level of maritime experience among the partners in this development project, has been key.”

“This is a milestone for net zero shipping. We now have a high-quality range extender to add to our existing ESS portfolio with the scalability and the safety needed to be a real driver in the future of marine decarbonization.”

The first Corvus Pelican Fuel Cell System is produced and ready to be installed onboard MS Skulebas, a 35-meter fishing and training vessel owned by Vestland County and operated by Måløy Upper Secondary School in Norway.

The vessel already has a 1 MWh battery system onboard. By adding the Corvus Pelican Fuel Cell System and hydrogen storage, the vessel will be able to operate for four days on zero emission.

Photo credit: Corvus Energy
Published: 10 September, 2024