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SMW 2021: MPA & Partners ink SGD 120 million fund to establish maritime decarbonisation centre

Two separate agreements were signed: an MoC with stakeholders in the shipping industry to establish the fund, and an MoU with investment company Temasek.

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The Maritime and Port Authority of Singapore (MPA) said it will join hands with industry partners under two separate agreements signed on Wednesday (21 April) to advance decarbonisation efforts in the maritime industry.

Chee Hong Tat, Senior Minister of State for Foreign Affairs and Transport, witnessed the signing of the two agreements.

Firstly, MPA signed a memorandum of cooperation (MoC) with BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas and BHP to establish a fund for a maritime decarbonisation centre to be set up in Singapore.

This follows the release of a recommendation by the International Advisory Panel on Maritime Decarbonisation (IAP) to set up a maritime decarbonisation centre in Singapore.

Under the MoC, each private sector partner will contribute SGD 10 million (USD 7.5 million) to support the establishment of the centre, fund maritime-decarbonisation-related research and technology development projects and collaborate with institutes of higher learning and research institutes.

MPA will add SGD 60 million (USD 45 million) R&D funding to these contributions, bringing the fund to a total of SGD 120 million.

“Maritime decarbonisation is a global challenge requiring a collective responsibility from all stakeholders involved. It is crucial to have strong public-private sector partnerships,” said Quah Ley Hoon, Chief Executive of MPA.

“We thank like-minded partners that have responded strongly to our call for collaboration. The agreements signed today are two initial steps, which we hope will catalyse a larger, much needed momentum to make international shipping more sustainable.”

“We are delighted to be able to contribute to this initiative. Climate change is a defining challenge of our time, and the only way to tackle this is with cross-border, cross-sector collaboration,” added Andreas Sohmen-Pao, Chairman, BW Group.

“While helping to find solutions for the industry, companies can also help themselves to prepare for the future by being part of this effort. We look forward to partnerships and insights through the centre.”

“Collaboration and knowledge sharing is the new normal to advance decarbonisation in the maritime industry,” noted Wong Weng Sun, President & Chief Executive Officer, Sembcorp Marine.

“SembCorp Marine believes that an interconnected approach to tap the best- in-class capabilities of players in our industry will lead to breakthrough outcomes in decarbonisation.”

“Sustainability begins with accountability and maritime leaders have a responsibility to implement emission-lowering solutions available today while simultaneously developing solutions for tomorrow,” added Cyril Ducau, Chief Executive Officer, Eastern Pacific Shipping.

“The formation of a maritime decarbonisation centre is a major milestone, combining forces of both public and private industry players,” said Cyril Ducau, Chief Executive Officer, Eastern Pacific Shipping.

“It proves that the sector is willing to band together and take ownership of environmental preservation for future generations. EPS is proud to be part of this partnership.”

“This is a further significant step forward by ONE, in alignment with its new green strategy direction. ONE is committed to accelerating maritime decarbonisation collaboration at both governmental and private sector industry level,” commented Jeremy Nixon, CEO, Ocean Network Express.

“The Foundation Det Norske Veritas is driven by a desire to help society tackle major global transformations,” noted Remi Eriksen, Chief Executive Officer, Foundation Det Norske Veritas and DNV.

“Transforming the world energy system is one of the biggest challenges confronting society, and shipping must play its part. But this cannot be achieved without industry wide collaboration. Working together, I am confident the Centre will deliver a global impact on decarbonisation while further bolstering the Foundation’s purpose of safeguarding life, property and the environment.”

“The key to navigating the pathway to decarbonisation in the maritime industry is an ecosystem approach with all partners working collaboratively towards the same goal,” said Vandita Pant, Chief Commercial Officer, BHP.

“BHP is proud to sign this Memorandum of Cooperation (MoC), and is committed along with our other like-minded companies, to lead the maritime sector towards that goal through the marine decarbonisation centre.”

MPA also signed a memorandum of understanding (MoU) with Singapore-headquartered investment company, Temasek, to explore collaborations related to decarbonisation of port operations, development and use of low-carbon and/or alternative marine energy sources and decarbonisation of the other parts of the global and regional maritime supply chain, with Temasek and Temasek Portfolio Companies at the same event today.

“Decarbonisation is an important priority for the maritime industry. This MPA-Temasek agreement paves the way for joint efforts aimed at reducing carbon emissions across port operations, maritime supply chains and shipping, including new potential low- or no-carbon fuels for ships,” said Juliet Teo, Head of Transportation and Logistics at Temasek.

“This partnership underscores Temasek’s commitment to a net zero carbon emissions portfolio by 2050 by applying our capital to catalyse new, potentially game- changing, solutions to today’s carbon challenges.”

MPA Temasek

Photo credit: Maritime and Port Authority of Singapore
Published: 21 April, 2021

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Bunker Fuel Quality

FOBAS: High/off-spec ash found in ARA residual bunker fuels due to calcium

These fuels were bunkered in the second half of April from ports in the ARA region with tested ash ranging from 0.102 to 0.127%m/m; high calcium is a main contributor to the off-spec ash.

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Louis Reed from Unsplash

Lloyd’s Register Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) on Thursday (8 May) released a bulletin regarding its testing on a number of fuels that have a high tested Ash content, above the 0.100%m/m limit for an RMG380 grade:

In recent days FOBAS has tested a number of fuels that have a high tested Ash content, above the 0.100%m/m limit for an RMG380 grade. These fuels were bunkered in the second half of April from ports in the ARA (Antwerp, Rotterdam, Amsterdam) region with tested Ash ranging from 0.102 to 0.127%m/m.

These fuels are all high sulphur residual fuels (>0.50% mass) with very similar properties and appear to be from the same source.

One common factor in all is the high Calcium which is a main contributor to the off-spec Ash in each case. Calcium ranged from 116mg/kg up to 181mg/kg. Sodium was also relatively high ranging from 50 to 86mg/kg., The fuels also had high acid numbers (TAN) ranging from 2.20 to 3.40mgKOH/g.

Often when we see high acid numbers (>2.00mgKOH/g) and high Calcium together this is due to naphthenic acids. These are present in the original crude oil and generally not considered any operational concern. Initial testing on some of these recent fuels show naphthenic acids to be present.

There are some additional points to clarify on the above:

  • Firstly, in relation to Calcium, it may be noted that ISO8217 lists a 30mg/kg limit for Calcium. It is important to note the full clarification in the standard however, where the Calcium limit only applies in conjunction with the Phosphorus or Zinc limits of 15mg/kg, used as a measure of ULO (Used Lubricating Oil) presence, rather than to limit the Calcium content on its own.
  • Sodium levels, although relatively high are all still below the 100mg/kg RMG380 grade limit.
  • On any high acid number fuel, it should also be noted that just because naphthenic acids are present, it does not rule out any other contamination or potential issues with the fuel. Additional attention should be given to the performance of the fuel injection equipment and component conditions during the use of such fuels
  • Although Calcium on its own is not a problem, at high levels where it increases the total Ash content as seen here, it can be an issue with increased Ash potentially leading to an increase in post combustion fouling and surging of turbocharger. This should not be allowed to accumulate in particular in the turbocharger, inlet grids, nozzle and blading.

So far we have not had any operation problems reported on the use of these fuels, however caution should be taken in particular to dealing with any increase in post combustion fouling as mentioned, and if further investigation into the nature of the acidic components present is required to confirm they are only naphthenic acids then detailed GCMS forensic testing could be carried out.

 

Photo credit: Louis Reed from Unsplash
Published: 9 May, 2025

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LNG Bunkering

Singapore: ITOPF and Britannia P&I Club conduct table-top workshop for LNG bunker spills

Both held a workshop where attendees planned a response to a spill scenario of LNG from an alternatively fuelled vessel as part of a new training exercise.

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Singapore: ITOPF and Britannia P&I Club conduct table-top workshop for LNG bunker spills

The International Tanker Owners Pollution Federation (ITOPF) on Wednesday (7 May) said it held a table-top workshop with Britannia P&I Club in Singapore where attendees planned a response to a spill scenario of Liquefied Natural Gas (LNG) as part of a new training exercise called HYDRO NEXUS. 

The half-day event saw team members from Britannia successfully responding to a spill of LNG bunkers from an alternatively fuelled vessel, who were assisted by the ITOPF team on how best to approach the response, taking into account the risks and hazards presented by this substance.

“The Britannia team were guided by ITOPF’s experts on the steps of an alternative fuel and HNS (Hazardous and Noxious Substances) response, including information gathering, risk assessment, appropriate PPE selection, and use of different techniques and equipment used in these spill scenarios,” it said on its website. 

“One key component of the exercise was to demonstrate the potential impacts and claims that the P&I insurers may face during an alternative fuel/HNS incident. Teams collated costs for loss of life and personal injury, clean-up and preventive measures, property damage, economic loss and environmental damage claims.”

 

Photo credit: International Tanker Owners Pollution Federation
Published: 9 May, 2025

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Decarbonisation

Singapore-based Berge Bulk installs carbon capture system on board bulk carrier

System, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System, designed to capture up to 15 tonnes of CO₂ per day.

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Singapore-based Berge Bulk installs carbon capture system on board bulk carrier

Singapore-based dry bulk owner Berge Bulk on Wednesday (7 May) said it has completed the installation of a carbon capture system on board its 63,000 DWT Ultramax vessel Berge Yotei.

The system, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System. It is designed to capture up to 15 tonnes of CO₂ per day, representing a potential 30% reduction in emissions during operations.

Unlike conventional scrubbers, the Filtree System removes both sulphur oxides and CO₂ from a vessel’s exhaust. CO₂ is absorbed into a reusable amine solution, which can be offloaded in port for regeneration or reuse. Potential applications include use in greenhouses, beverage production, and other industrial processes — contributing to a more circular carbon economy.

“Carbon capture is a key pillar of our decarbonisation strategy. While we remain committed to optimising fleet efficiency, installing decarbonisation technology, and switching to new fuels, we must also capture carbon at the same time.” said James Marshall, CEO of Berge Bulk. 

“We’ve been actively capturing carbon through nature-based solutions on shore for many years, now it’s time to also start capturing carbon on board.”

As the industry looks to decarbonise, Berge Bulk emphasised the need for collaboration across governments, ports, technology providers, and regulators to develop the infrastructure, protocols, and commercial models needed to support carbon capture at scale.

 

Photo credit: Berge Bulk
Published: 9 May, 2025

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