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SMW 2023: CSA welcomes new members to spur efforts on decarbonising Singapore’s coastal vessels

New 11 members include Ken Energy, Ampotech, Columbia Ship Management Singapore, Green COP, RMS Marine & Offshore Service, M1, MagicPort, SIT, Sinwa Singapore and ST Engineering.

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SMW2023

The Coastal Sustainability Alliance (CSA), an industry collaborative effort led by Kuok Maritime, on Tuesday (25 April) said it has formalised the addition of 11 new members through a Memorandum of Understanding (MOU) at Singapore Maritime Week 2023’s MarineTech Conference. 

The contributions from the new members will accelerate CSA’s efforts to electrify, digitalise and decarbonise Singapore’s coastal vessels, strengthen marine supply chains and build Singapore’s next-generation maritime ecosystem.

The new CSA members include Ampotech, Columbia Ship Management Singapore, Green COP, Ken Energy, RMS Marine & Offshore Service, M1, MagicPort, Singapore Institute of Technology (SIT), Sinwa Singapore, ST Engineering, and Swift Total Logistics. This brings the CSA to 18 members since its formation in March 2022.

Collectively, CSA’s strategies actively contribute to the goals set out by the Maritime and Port Authority of Singapore (MPA) to achieve net-zero emissions by 2050. The Alliance is also working closely with the MPA to comply with regulatory requirements and infrastructure standards to ensure compatibility and support a collaborative maritime culture and ecosystem.

Mr Tan Thai Yong, Chief Executive Officer, PaxOcean and Chairperson, CSA Council, said: “We are excited to mark the Coastal Sustainability Alliance’s first anniversary with the addition of 11 new members and to advance our efforts to electrify and build Singapore’s next-generation coastal ecosystem conclusively.”

“In this one year, we have reached a significant milestone in the commercialisation of our PXO electric supply vessel, which will be the first and largest local design-build-and-deployed boats to be in operation in Singapore. Such achievements are only possible through the united efforts of our current and new CSA members and with the strong support of the Maritime and Port Authority of Singapore, Enterprise Singapore, and Workforce Singapore.”

Mr Teo Eng Dih, Chief Executive, Maritime and Port Authority of Singapore, said: “Maritime decarbonisation requires the collective efforts of the entire value chain. It is heartening to know that 11 new members have joined the Coastal Sustainability Alliance on the journey to achieve net-zero emissions for the sector by 2050. We will continue to work with like-minded partners such as the Coastal Sustainability Alliance on the design and development of green solutions for the domestic maritime craft sector.”

The conference was graced by Guest of Honour Mr Chee Hong Tat, Senior Minister of State, Ministry of Finance & Ministry of Transport. 

The new alliance members will help the CSA accelerate its multi-stakeholder efforts across its five strategic areas:

  1.   PXO e-tug and e-supply vessel design, build and deployment– The electric tug (e-tug) and electric supply (e-supply) vessels are the first in CSA’s PXO series of electric boats and floating platforms designed for the coastal waters of Singapore. The zero-emissions e-supply and e-tug are among the world’s first electric coastal vessels and one of the first and largest local electric supply boats designed for operation in Singapore’s coastal waters. In addition, the Singapore-designed PXO e-vessels adopt several innovative technologies, such as wireless charging, advanced manufacturing, and coastal twinning.
  • The PXO vessels will also be future-ready for alternative fuels with a Zero Carbon Fuel Ready configuration, which will prevent stranded assets due to advances in technology. Commercialisation of the PXO vessels is underway with the recent announcement that CSA has secured from Ken Energy an intent to purchase PXO e-supply vessels to tap into new growth opportunities. The e-supply vessels are expected to be delivered by 2025.
  1. Promoting sustainable resource management through e-waste reduction, upcycling and alternative biofuels – In partnership with Green COP, the CSA is developing and commercialising sustainable second-generation biofuels as a transition fuel for conventional harbour crafts to cut emissions. This effort forms a part of CSA’s approach towards vessel electrification and sustainability, further complemented by the upcycling of EV batteries into battery packs for marine use, effectively reducing e-waste.
  2. Reduce marine traffic by 20% through logistics and fleet optimisation solutions – A select group of CSA members – Jurong Port, ST Engineering, M1, MagicPort, Ampotech and PaxOcean, are co-developing a coastal logistics operation platform which will seamlessly integrate logistics, fleet operations, battery performance management and just-in-time operations to meet the needs of vessels, terminals and service providers. Through this platform, the CSA aims to reduce Singapore’s coastal marine traffic by 20% and improve safety. It will achieve this through fleet optimisation and renewal, mobile floating platforms in selected locations in coastal waters off Singapore, sea and aerial drones, and autonomous vessels for last-mile deliveries to improve operational range and reduce downtime.
  3. Support the growth of SMEs and start-ups through a sustainable green supply chain and maritime business ecosystem – The growing number of SMEs and start-ups in the CSA attests to its ambition to create a sustainable maritime supply chain, provide business opportunities to strengthen the competitiveness of SMEs and uplift the entire value chain of the marine industry. The CSA expects 70% of PXO vessel components to be sourced from local SMEs.
  4. Talent attraction and workforce upgrading – Grooming a future-ready talent pool is critical to Singapore’s position as a global maritime centre. With the Singapore Institute of Technology as a new member, the CSA will accelerate its efforts in talent development and workforce upgrading programmes for sea and shore staff in areas such as autonomous capabilities and coastal logistics optimisation. In addition, the CSA will facilitate skills-building programmes for technical staff in product development activities, technology transfers, and alternative fuels.

CSA’s Multi-Stakeholder Approach to Decarbonising the Maritime Industry

The new 11 members will join CSA pioneers A*STAR, GenPlus, Jurong Port, Sea Forrest Power Solutions, Technology Centre for Offshore and Marine Singapore (TCOMS) and TES. The CSA is expected to invest over S$20 million into various sustainability efforts over the next ten years with the aim of a 50% reduction in vessel carbon emissions and 20% in marine traffic by 2030.

The CSA was launched in March 2022 by Kuok Maritime, comprising PaxOcean Holdings Pte Ltd, Pacific Carriers Limited (PCL) and POSH (PACC Offshore Services Holdings). KSL’s Centre of Excellence Engineering R&D anchors the CSA initiatives, providing a comprehensive platform for the CSA to build the next-generation of Singapore’s maritime ecosystem and accelerate the decarbonisation, electrification and advancement in energy-efficient logistics and engineering solutions.

Looking into its second year, Mr Tan added: “With our multi-stakeholder approach, the CSA remains at the forefront of Singapore’s decarbonisation efforts in the maritime sector. Our coherent and systematic strategy provides our members with the assurance of a strong and progressive pathway which meets both business and environmental demands. We welcome interested parties to join us on this journey to create a more sustainable maritime industry.”

 

Photo credit: Maritime and Port Authority of Singapore
Published: 26 April, 2023

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Alternative Fuels

IUMI: How can liability and compensation regimes adapt to alternative bunker fuels and cargoes?

Existing international liability and compensation regimes do not fully cater to the changes that the use of alternative marine fuels will bring.

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Dangerous cargo

By Tim Howse, Member of the IUMI Legal & Liability Committee and Vice President, Head of Industry Liaison, Gard (UK) Limited

The world economy is transitioning, with industries across the board seeking to reduce their carbon footprint and embrace more sustainable practices. As part of this, there is a huge effort within our industry to look to decarbonise, using alternative fuels such as biofuel, LNG, LPG, ammonia, methanol, and hydrogen.

Until now there has been much focus on carbon emissions and operational risks associated with the use of alternative fuels. This includes increased explosivity, flammability, and corrosivity. An ammonia leak causing an explosion in port could result in personal injuries, not to mention property damage, air, and sea pollution. In addition, alternative fuels may not be compatible with existing onboard systems, increasing the risk of breakdowns and fuel loss resulting in pollution. Apart from these safety concerns, which particularly concern crew, air pollution and other environmental impacts need to be addressed.

However, the green transition also presents us with a separate regulatory challenge, which has received less attention so far. So, whilst carbon emissions and safety concerns are rightly on top of the agenda now, the industry also needs to prioritise the potential barriers in the legal and regulatory frameworks which will come sharply into focus if there is an accident.

If anything, historic maritime disasters like the Torrey Canyon spill in 1967, have taught us that we should look at liability and compensation regimes early and with a degree of realism to ensure society is not caught off-guard. With our combined experience, this is perhaps where the insurance industry can really contribute to the transition.

Currently, existing international liability and compensation regimes do not fully cater to the changes that the use of alternative fuels will bring. For example, an ammonia fuel spill would not fall under the International Convention on Civil Liability for Bunker Oil Pollution Damage (Bunkers Convention), potentially resulting in a non-uniform approach to jurisdiction and liability. Similarly, an ammonia cargo incident would not fall under the International Convention on Civil Liability for Oil Pollution Damage (CLC). Uncertainties may also exist in the carriage of CO2 as part of Carbon Capture and Storage (CCS) projects, which may be treated as a pollutant, with corresponding penalties or fines.

A multitude of questions will arise depending on what happens, where it happens, and the values involved, many of which may end up as barriers for would be claimants. How will such claims be regulated, will there be scope for limitation of liability, and would there be a right of direct action against the insurers? In the absence of a uniform international liability, compensation and limitation framework, shipowners, managers, charterers, individual crew, and the insurers may be at the mercy of local actions. Increased concerns about seafarer criminalisation (even where international conventions exist, ‘wrongful’ criminalisation does still occur) may emerge, creating another disincentive to go to sea.

When being carried as a cargo, the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS), which is not yet in force, may resolve some of these issues for alternative fuels and CO2. However, until HNS comes into force, there will be no international uniformity to liability and compensation for the carriage of alternative fuels and CO2 as cargoes. This creates uncertainties for potential victims and their insurers, who may face increased risks and costs, due to the potential inability of existing regulations to provide protections.

The situation is even less clear in the case of bunkers. The rules for using alternative fuels as bunkers might require a separate protocol to HNS, a protocol to the Bunkers Convention, or a whole new convention specifically for alternative fuels.  Relevant considerations for the appropriate legislative vehicle include states’ preparedness to reopen the Bunkers Convention, the ability to conclude a protocol to HNS before it comes into force, and whether a multi-tier fund structure is needed for alternative fuels as bunkers (perhaps unnecessary because bunkers are usually carried in smaller quantities compared to cargoes).

Until then, what we are left with are the existing international protective funds, designed to respond at the highest levels to pollution claims resulting from an oil spill, without any similar mechanism in place to respond to a spill of alternative fuels, which are themselves so central to a green transition. Somewhat perversely, victims of accidents involving an oil spill may therefore enjoy better protections than victims of an alternative fuels spill.

In summary, while the use of alternative fuels will no doubt help to reduce the industry's carbon footprint, there are safety and practical hurdles to overcome. Stakeholders must also come together to find solutions to complex - and urgent, in relative terms - legal and regulatory challenges.

 

Photo credit: Manifold Times
Source:  International Union of Marine Insurance
Published: 13 June 2024

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Ammonia

Expert discusses technical considerations of using ammonia as marine fuel

Ammonia as bunker fuel poses significant safety challenges due to its toxicity and flammability, says Senior Marine Surveyor Muammer Akturk.

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Technical considerations of ammonia as marine fuel

Muammer Akturk, a Senior Marine Surveyor specialising in alternative bunker fuels, on Monday (10 June) published an article on technical considerations of using ammonia as a marine fuel in his Alternative Marine Fuels Newsletter.

The article dives into the use of ammonia as a marine fuel, focusing on the safety and technical considerations necessary for its implementation.

Ammonia is recognised for its potential as a zero-carbon fuel, making it an attractive option for reducing greenhouse gas emissions in the shipping industry. However, it poses significant safety challenges due to its toxicity and flammability.

Key points discussed include:

  1. Safety Measures: The importance of stringent design and operational safety measures to prevent ammonia releases and mitigate risks during both normal and emergency conditions is emphasized. This includes the need for gas dispersion analyses and the use of safety systems like gas detectors and alarms
  2. Regulatory Framework: The article reviews the latest regulations and guidelines developed to ensure the safe use of ammonia as a marine fuel. This includes the IACS Unified Requirement H1, which provides a framework for controlling ammonia releases on vessels
  3. Engineering Considerations: Technical aspects such as fuel storage, handling systems, and the role of risk assessments in identifying potential hazards and implementing preventive measures are detailed
  4. Human Factors: The article also considers the human factors approach to safety, emphasizing training and the importance of designing systems that account for human errorOverall, the article aims to provide a comprehensive overview of the challenges and solutions associated with using ammonia as a marine fuel, highlighting the importance of safety and regulatory compliance in its adoption.

Editor’s note: The full article can be found at the link here.

 

Published: 13 June 2024

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Methanol

Green Marine Fuels Trading, Vopak team up on green methanol port storage facilities

Green Marine Fuels revealed a strategic collaboration with Vopak to secure necessary port storage to accommodate green methanol supply in Shanghai, Tianjin and later in Singapore.

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Green Marine Fuels Trading, Vopak team up on green methanol port storage facilities

Green Marine Fuels Trading on Tuesday (11 June) announced a strategic collaboration with Royal Vopak Terminals in the key ports of Shanghai Caojing and Tianjin Lingang, China. 

The firm said the milestone agreement marked the next phase of methanol supply chain infrastructure expansion for Green Marine Fuels Trading, securing necessary port storage capacity to accommodate projected supply of green methanol from Chinese business partners.  

Green Marine will be undertaking a similar cooperation plan with Vopak Singapore as well. 

Gavin McGrath, Director at Green Marine, said: “This is an important milestone in the evolution of Green Marine Fuels Trading and further underscores our preparedness to supply green methanol to the imminent green transition within the shipping industry.” 

“Our leadership in the global methanol marine fuel sector uniquely positions us to bridge the gap between methanol producers and buyers, with storage and supply infrastructure being a crucial link in the chain.”

“We eagerly anticipate leveraging our expertise in these domains to enrich the Shanghai and Tianjin green port and marine fuel ecosystems.”

Manifold Times previously reported Vopak signing a strategic cooperation agreement with the Vice Mayor of Tianjin delegation to support the repurposing of Vopak Tianjin's infrastructure for new energies, including green methanol, sustainable aviation fuel, and potentially ammonia and liquid organic hydrogen carriers (LOHC).

Vopak said Tianjin Port Group will work closely with Vopak to develop a green methanol bunkering service solution.

Related: Tianjin Port Group and Vopak partner to develop green methanol bunkering service

 

Photo credit: Green Marine Group
Published: 12 June 2024

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