Alternative Fuels

Singapore: VPS panel discussion presents a masterclass in shipping’s biofuel bunker adoption issues to the deck

VPS, Global Centre for Maritime Decarbonisation, Wilhelmsen Ship Management, and INTERTANKO executives offered a multitude of perspectives to 73 attendees during the VPS Biofuels Seminar, reports Manifold Times.

Published

2 years ago

February 21, 2023

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Delegates were exposed to the latest trends and perspectives at a recent panel discussion session comprising of executives from marine fuel testing firm VPS, Global Centre for Maritime Decarbonisation (GCMD), Wilhelmsen Ship Management, and the International Association of Independent Tanker Owners (INTERTANKO).

The session, held as part of the VPS Biofuels Seminar, was moderated by Captain Rahul Choudhuri, Managing Director for Asia, Middle East & Africa (AMEA) at VPS.

Captain Rahul Choudhuri

“The role of biofuels is an important step in the direction of a viable option for an alternative fuel source,” said Captain Choudhuri.

“It is not the only option but it is gaining momentum and we have seen a drastic change from pre-Covid to post-Covid in terms on greater usage of biofuels.

“But it needs to be understood if we are to use it successfully and safely in the shipping industry.

“This is the motivation for us to have our VPS Biofuels Seminar in Singapore. This interaction is necessary to understand different points of view and find a pragmatic path forward for greener fuels.”

He emphasised Singapore has been the first country to have developed a provisional national standard on specifications of marine biofuel (WA 2:2022), which global adoption is important.

“WA 2:2022 shows that Singapore port is ready, the technical experience is there, and the quality is assured,” said Captain Choudhuri, who was also the Chairman of the committee involved in its development.

“However, I was fairly disappointed that ISO [the International Organization for Standardization] has been in my opinion parochial and maybe too political to accept WA 2:2022 which is technically robust.”

Global Centre for Maritime Decarbonisation – Assurance framework in development

Dr Prapisala Thepsithar, Director, Research & Projects, GCMD believed a firm set of standards such as WA 2:2022 will be necessary for the future safe use and adoption of biofuels as a bunker fuel.

She revealed GCMD has been developing an assurance framework to ascertain quantity, quality and greenhouse gas (GHG) abatement for green marine fuels.

“We foresee during the energy transition, green fuel production will ramp up with the introduction of biofuels into the marine fuel supply chain and we need a framework to differentiate certain martials [i.e. gray/bio/green/blue methanol, green/blue/brown ammonia],” she explained.

“Our first assurance framework project is focused on biofuels including FAME, HVO and crude algae oil where we monitor the quality of biofuel from the country of origin until blending and bunkering operations – which to date we have not discovered any quality issues.”

Still, Dr Thepsithar pointed out the case may be different in the time ahead when demand increases – incentivising players to inflate the quantity of biofuels through the addition of chemicals and foreign material.

“So that's why I think the robust standard [including WA 2:2022] is necessary.”

In addition, she noted GCMD has been conducting extensive laboratory work on long-term degradation and compatibility tests of marine biofuels in this project.

“We are still lacking quite a lot of data to support findings; certain parameters have to be established in order to measure empirical evidence,” she noted.

“I believe WA 2:2022 presents very reasonable parameters for this activity.”

Dr Thepsithar also noted GCMD working with VPS to incorporate “fingerprinting” technology into its assurance framework.

VPS – Trials biofuel ‘fingerprinting’ technology using GC-MS techniques

“This [fingerprinting] work that we're doing with GCMD is quite ground breaking,” said Steve Bee, Group Commercial Director, VPS who added: “The science is there, we just need to just tweak it.”

Though still in its early stages, Bee shared Gas Chromatography – Mass Spectrometry (GC-MS) techniques employed has shown it being able to identify the differences between biofuels based on palm oil, soya, and more with some unexpected (but useful) results.

“Initial signs are really, really encouraging and positive,” he shared.

“We have seen examples where suppliers say ‘It's compound X which is a completely renewable, sustainable product made from waste’ and we've identified the biofuel being made from palm oil – completely different to what they actually said was in their fuel.

“It's still early days, but I say the signs are all really positive; the physical trace element will help GCMD develop confidence and traceability and transparency in the supply chain.”

Wilhelmsen Ship Management (WSM) – ‘Money the driver’ for bio feedstock production

Carl Schou, CEO of WSM, meanwhile offered his perspective on biofuel production, green marine fuel corridors, and the influence of ‘big and strong’ shipowners over methanol as a bunker fuel during the panel discussion.

“When the shipping sector increasingly adopts biofuels as bunkers, farmers might choose to produce crops as a bunker feedstock over human consumption; if farmers get a higher price for fuel is pretty obvious what they will be doing,” he predicted.

“Hence, this has to be seen from all sides so we don't start competing with food production. As always, money is the driver. If somebody gets more money, then obviously it will go in that direction.”

According to Schou, a number of shipping corridors with different bunker fuel types will start to emerge on the back of approaching IMO 2030/2050.

“I know there are several projects ongoing with different corridors with various fuels such as ammonia, biofuels and more. I don't think we will see a situation where we have a global supply of one or the other [type of alternative bunker fuel],” he stated.

“So, this is also going to be another challenge added to this whole fuel issue.

“If you want to trade Singapore to China then it's kind of a biofuel corridor. If you do Middle East to Singapore then it's different type of fuels. This is something which I think we are seeing panning out now.”

A few “big and strong” shipowners have also been setting the precedence for the adoption of methanol as a marine fuel, noted Schou.

“A lot of the driving force [for green fuels] will be coming from the big players, and then you have the smaller players who will follow up,” he said.

“But at the end of the day, the smaller players might try to avoid a lot of this because the focus is on the bigger players.

“So, it's a double-edged sword here.”

INTERTANKO – ‘Agnostic’ on alternative bunker fuel types for IMO GHG goals

During the session, Elfian Harun, Regional Manager Southeast Asia & Environment Manager, INTERTANKO said the organisation was “agnostic” on the type of alternative fuels that could meet the long-term objective of the International Maritime Organization (IMO)’s GHG goals.

“However, there are a couple of caveats. These include fuels to be not harmful to ship’s crew; fuels to be available worldwide; and to be provided with solid certified documentation regarding its carbon footprint,” informed Harun.

Regarding regulatory hurdles for the adoption of biofuels as bunkers, Harun pointed out there is a need for consistent approval procedures by Flag States for the use of biofuel on vessels.

“IMO will have to sort this out before any fuel is declared ‘alternative’ as far as the decarbonisation regulations are concerned.”

The current debate from the Life Cycle Assessment (LCA) perspective for biofuels will also need to be addressed.

“A number of sustainability factors are currently being considered for inclusion in the draft LCA Guidelines,” he said.

“These would have an impact on how biofuels will be lower GHG emitters when compared to conventional fossil fuels especially from a Well-to-Wake (WtW) perspective, in particular, the Well-to-Tank (WtT) component.

“Currently, ten sustainability themes/aspects [GHG emission levels, carbon source, source of electricity/energy, Direct Land-Use Change, Indirect Land Use Change, impact on water supply, impact on air quality, impact on soil health, impact from chemical or wastes released during production, impact on ecosystem biodiversity] are being discussed for inclusion in the LCA guidelines.

“Some of these appear to be particularly targeted at ensuring biomass crops are sustainable and should not cause mitigating actions to address these aspects, which may in turn, lead to increase in GHG emissions.”

Operational concerns for the use of biofuels as bunkers will also need to be resolved, as there is a need for real-world experiences to be documented and shared among users of biofuel.

“Eventually, a standard procedure would need to be developed for the safe use of biofuel as fuel for ships,” he ends.

(Left to Right) Steve Bee, Elfian Harun, Carl Schou, Dr Prapisala Thepsithar, Captain Rahul Choudhuri

Photo credit: Manifold Times
Published: 22 February, 2023

Alternative Fuels

South Korea launches USD 696 million green bunker fuel infrastructure fund

Out of KRW 1 trillion, KRW 600 billion will be invested to build port storage facilities capable of supplying alternative marine fuels while KRW 400 billion will be used for constructing four bunkering vessels.

Published

17 hours ago

January 22, 2025

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South Korea launches USD 696 million green bunker fuel infrastructure fund

South Korea’s Ministry of Oceans and Fisheries and Korea Ocean Business Corporation recently held a launch ceremony in Seoul for a KRW 1 trillion (USD 696 million) infrastructure fund that will be used to support the development of storage facilities for green marine fuels and bunkering vessels.

Out of the KRW 1 trillion, KRW 600 billion will be invested to build port storage facilities capable of supplying LNG, methanol, and ammonia, and the remaining KRW 400 billion will be invested in constructing four new LNG and ammonia bunkering vessels by 2030.

The move is expected to meet growing demand for green bunker fuels for domestic vessels and ensure reliable fuel supplies for foreign ships calling at domestic ports.

The ministry also announced that the Ulsan Hyundai Liquid Cargo Terminal Expansion Project was selected as the new fund’s first project to support the demand for methanol bunker fuel for domestic and foreign vessels. The total cost of the project is KRW 240 billion, of which KRW 130 billion will be provided by the infrastructure fund.

In addition, the government plans to strengthen LNG supply capabilities through the Yeosu Myodo LNG Hub Terminal Project scheduled as the second project to be supported by the fund.

Minister of Oceans and Fisheries Kang Do-hyung, said: “Through the infrastructure fund, the government will flexibly expand the eco-friendly ship fuel supply infrastructure in line with future demand so that our ports can continue to secure a competitive edge as a global hub port.”

Photo credit: Ministry of Oceans and Fisheries of South Korea
Published: 22 January, 2025

Alternative Fuels

UECC green bunker fuel investments avert FuelEU surcharges for customers

UECC said it has been able to eliminate surcharges for its customers under FuelEU Maritime as proactive adoption of green marine fuels has drastically reduced its financial exposure to the regulation.

Published

17 hours ago

January 22, 2025

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UECC and Titan team up on bio-LNG bunkering operations in Port of Zeebrugge

United European Car Carriers (UECC) on Monday (20 January) said it has been able to eliminate surcharges for its customers under FuelEU Maritime as proactive adoption of green fuels has drastically reduced its financial exposure to the newly implemented regulation.

Currently, switching to low-carbon biofuels is generally seen as the most effective route to achieve compliance with progressively tighter carbon intensity reduction targets and thereby avoid penalties under FEUM, which is designed to promote uptake of alternative fuel technologies towards the goal of net zero.

However, this approach will typically entail higher fuel costs for shipping companies given that biofuels - which can deliver respective reductions of 85% and 100% in well-to-wake and tank-to-wake emissions - cost between 50-150% more than conventional fossil fuels, while there is also limited feedstock supply.

An additional ‘Energy Surcharge’ levied on shippers to compensate for this price differential can be as much as 2-5% with the use of biofuel, according to UECC’s Energy & Sustainability Manager Daniel Gent.

But he said: “UECC will change absolutely nothing about its pricing structure in relation to FEUM.”

Gent explained this is largely due to the fact that UECC has already achieved significant reductions in carbon intensity by expanding the use of biofuels across its 15-vessel fleet since 2020.

It has also adopted liquefied biomethane (LBM) on its five dual and multi-fuel LNG Pure Car and Truck Carriers under the Sail for Change sustainability initiative launched last year that is supported by several major vehicle manufacturers.

“Consequently, we are already running a compliance surplus in relation to FEUM with our current energy mix and this is expected to extend into the early 2030s,” he says.

“We have previously informed our customers that their support for our investment in multi-fuel LNG vessels would insulate them against regulatory penalties and this is exactly what is happening here. This demonstrates the clear benefits of being ahead of regulation, investing in progressive technology and in the process of generating savings for our customers.”

UECC’s fleet decarbonisation effort has focused on investments in eco-friendly newbuilds - with two more multi-fuel LNG battery hybrid PCTCs currently on order - as well as piloting alternative fuels, in addition to operational efficiencies and technical measures such as waste heat recovery and hull anti-fouling.

The company has rigorous fuel selection criteria based on sustainability, technical suitability and commercial viability. Its bio-products are compliant with Renewable Energy Directive (RED) criteria and sourced from Annex 9 feedstocks in line with regulatory requirements, while all fuels used are ISCC-certified.

Through a proactive fuel procurement strategy, UECC has secured volumes of alternative fuels for the longer term through agreements with suppliers like Titan Clean Fuels for LBM and ACT Commodities for biofuels to promote green fuel bunkering infrastructure. It is also diversifying its sources of supply, such as through a recent first truck-to-ship LBM refuelling operation with Naturgy in Spain.

“LBM from certain feedstocks or including carbon capture are the ‘heavy lifters’ on our decarbonisation journey and we see huge potential in these fuels,” Gent says.

UECC is firmly on track to achieve a minimum 45% reduction in carbon intensity by 2030 to surpass the IMO target, while it is also set to exceed the required FEUM reduction of 31% by 2040 versus a 2020 baseline of 91.16 grams of CO2 equivalent per megajoule.

This means that UECC will have a sufficient compliance surplus to provide a pooling opportunity for third-party vessels under FEUM “so that all stakeholders can benefit from our investments”, according to Gent. But he says the company is not resting on its laurels and intends to make further alternative fuel investments with the aim of phasing out oil-based fossil fuels by 2040.

“As we are going ‘above and beyond’ in terms of our commitment to alternative fuels such as LBM and biofuel, we expect to have a significant compliance surplus under FEUM. With the investments we are planning in such fuels, UECC will never be in a position of needing to buy or borrow compliance units,” Gent concluded.

Photo credit: United European Car Carriers
Published: 22 January, 2025

Research

Safetytech Accelerator trials show strong potential to cut methane emissions in shipping

Three technologies from Framergy, Sorama, and Xplorobot, which were selected by MAMII, show potential to detect, measure, and mitigate methane emissions on LNG-powered ships.

Published

17 hours ago

January 22, 2025

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Safetytech Accelerator on Tuesday (21 January) said it has successfully completed three technology feasibility studies as part of its flagship Methane Abatement in Maritime Innovation Initiative (MAMII).

The studies were done in collaboration with Chevron, Carnival Corporation, Shell and Seapeak.

The results of these feasibility studies showed strong potential to cut fugitive methane emissions in the maritime industry.

MAMII is exploring options to advance these research projects to on-ship trials as soon as possible. 

While methane slip - unburnt methane released during the combustion process - remains the largest source of methane emissions on ships, emissions across the LNG supply chain, from loading to engine delivery, are also a concern.

These fugitive emissions are often unintended and short-lived, but identifying, quantifying, and mitigating them is essential to achieving industry-wide decarbonization goals.

Xplorobot, Sorama and framergy were selected by MAMII to help address the vital need to detect, measure and capture fugitive methane emissions from LNG-fuelled ships.

Each provider selected for the trials brings expertise in a different technology, including:

Xplorobot: Provides a handheld device and AI-powered platform to detect and measure fugitive methane on ships using computer vision to pinpoint leak locations, overlay real-time emission rate data, and integrate seamlessly with existing systems for quick issue resolution without requiring specialised training.
Sorama: Develops acoustic cameras that detect fugitive gas by visualizing sound and vibration fields in 3D. Integrated AI and onboard software identify anomalies and classify sounds, enabling direct leak localization without complex analysis.
framergy: Specialises in adsorbents and catalysts for methane emission management. Their product, AYRSORB™ F250GII, captures and stores fugitive methane by selectively filtering methane from the air, leveraging its ultra-high surface area and coordination chemistry.

Feasibility Study Results Show Promise For Methane Abatement

Xplorobot conducted a detailed evaluation of their Methane Compliance Solution, focusing on its efficacy in detecting and quantifying methane emissions on LNG carriers and LNG-powered vessels.

The study targeted emissions from the warm side of the gas fuel line and both planned and unplanned venting events. Utilising comparable on-land data, this desktop analysis assessed how the technology would perform in maritime settings.

The technology demonstrated accuracy levels of +/-30% for emissions over 500 grams per hour and +/-50% for emissions between 100 and 500 grams per hour, thanks to a refined neural network algorithm calibrated through controlled release experiments. Xplorobot's solution promises to reduce inspection time dramatically with the ability to inspect 50 to 100 components in under an hour—sometimes as quickly as 10 minutes.

This efficiency, combined with automated digital emission tracking and compliance reporting, make the solution cost-effective. The next step is to deploy the kit in the field to further validate and optimise the technology for widespread adoption across the maritime industry.

Photo credit: CHUTTERSNAP from Unsplash
Published: 22 January, 2025