Decarbonisation

SMW 2024: Giving the harbour craft sector a leg up in maritime’s decarbonisation drive

‘We have to bring costs down. Financing can be a problem because new, sexy tech comes with a price,” says Mr Michael Phoon of Singapore Shipping Association in a panel discussion.

Published

7 months ago

April 26, 2024

Admin

SMW 2024: Giving the harbour craft sector a leg up in maritime’s decarbonisation drive

The article ‘Giving the harbour craft sector a leg up in maritime’s decarbonisation drive’ was first published on Issue 4 of the Singapore Maritime Week 2024 Show Dallies; it has been reproduced in its entirety on Singapore bunkering publication Manifold Times with permission from The Nutgraf and the Maritime and Port Authority of Singapore:

Jaime Niam
[email protected]

The harbour craft sector is set to go almost fully electric by 2030, but more can be done to ensure it does not get left behind in the shadows of larger ocean-going ships.

One key issue is costs, said panellists at a discussion on transforming the harbour craft sector on Wednesday.

“We have to bring costs down. Financing can be a problem because new, sexy tech comes with a price,” said Mr Michael Phoon, Executive Director of the Singapore Shipping Association, who moderated the panel.

While Ms Huang Sipei, Vice President of Sustainability at Institutional Banking Group, DBS Bank, acknowledged that financing new technology can be a challenge, she also said that the local environment is becoming increasingly hospitable, with DBS Bank being supportive of this green transition.

“Government schemes are helpful in sharing risks with banks and mitigating uncertainties,” she said. For example, homegrown integrated marine and offshore services provider Penguin International took up the Enterprise Financing Scheme-Green loan from DBS Bank and Enterprise Singapore to launch Singapore’s first all-electric commuter ferry, Penguin Refresh, to Pulau Bukom island.

But it is not simply about mitigating the cost of new technology. Because the harbour craft sector is highly fragmented, streamlining and consolidating its business operations – both seaward and landward – is also imperative in lowering costs and enhancing efficiency, said Mr Danny Lien, President of the Singapore Association of Shipsuppliers & Services. As of July 2023, there were about 1,600 harbour crafts plying the waters of the Port of Singapore, though they are owned by many diverse groups of operators.

“We are trying to create a more consolidated effort with Pyxis…Instead of a single company in this industry trying to solve this, we must synergise our resources together,” said Mr Tommy Phun, Founder of Pyxis, a tech start-up that is helping coastal vessels switch from diesel to electricity.

“Going forward, a role that will be extremely important is that of the port orchestrator,” added Mr Nakul Malhotra, Vice President (Emerging Opportunities Portfolio) of Wilhelmsen Group, referring to how the various activities and processes that happen within a port must be coordinated.

The multi-purpose Jurong Port is one good example. “People see (ports) as just infrastructure, but we have capabilities beyond just providing land,” said Mr Desmond Ong, Chief Digital Officer of Jurong Port.

“The data (from the digital platforms and operating systems we built) allows us to streamline the supply side and become more optimal…and industry players can leverage these data points.”

Singapore Maritime Week 2024 was organised by Maritime and Port Authority of Singapore from 15 to 19 April.

Photo credit: Maritime and Port Authority of Singapore
Article credit: The Nutgraf/ Maritime and Port Authority of Singapore
Published: 25 April 2024

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Methanol

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

Korean firm’s MoU with AE Risinājumi will see construction of Latvia’s first commercial-scale green methanol production plant, which will supply green methanol to ships in EU’s maritime fleet.

Published

10 hours ago

December 2, 2024

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PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

South Korean clean energy firm PLAGEN on Friday (29 November) signed an MOU with Latvian company, AE Risinājumi, for the production of green methanol in Latvia at the “2024 Latvia-Korea Business Forum” hosted by the President of Latvia.

The agreement will result in the construction of Latvia's first commercial-scale green methanol production plant, which will supply green methanol to ships in the EU's maritime fleet, contributing to the reduction of greenhouse gas emissions from maritime transportation.

PLAGEN's MoU aims to produce 20,000 metric tonnes (mt) of green methanol per year and will begin feasibility studies in the first half of 2025, and full-scale production will begin in 2028.

With 53% of Latvia's land area covered by forests, timber production and wood processing make a significant contribution to Latvia’s economic production, which generates a large amount of forest residues and wood wastes. In addition, Latvia also has an abundance and low price of renewable electricity from wind power.

Latvia is one of the most competitive countries in the European Union, as it can produce clean methanol at a competitive price by using abundant wood waste as a raw material and renewable electricity from cheap wind power.

The use of abundant forest residues and wood wastes as a feedstock and cheap renewable electricity from wind power makes it possible to produce green methanol with a competitive price, making Latvia is one of the most competitive countries in the EU.

In the European Union, the European Emissions Trading Scheme (EU-ETS) will come into effect in 2025, requiring shipping companies to purchase carbon credits for their greenhouse gas emissions.

In addition, the EU is implementing FuelEU Maritime, which aims to reduce greenhouse gas emissions by 2% below the 2020 average by 2025 and 80% by 2050. This is expected to result in an energy transition to green methanol.

In July 2023, the International Maritime Organization (IMO) adopted a revised strategy that calls for reducing greenhouse gas (GHG) emissions from ships to net-zero by or around 2050, and plans to introduce full-scale regulations from 2027, and shipping companies have begun ordering methanol-powered ships fueled by green methanol, a carbon-neutral fuel.

“We expect to start producing green methanol in Latvia in 2028, which will reduce greenhouse gas emissions from EU maritime transport vessels and contribute significantly to the revitalization of the Latvian economy and national energy security,” said John Kyung, CEO of PLAGEN.

In November 2024, PLAGEN completed the purchase of an industrial complex and received a government permit for the construction of the country's first green methanol plant in Dongjeom Industrial Complex in Taebaek City, Gangwon-do.

The project, which will produce 10,000 mt per year, is scheduled to begin construction in the first half of 2025 and begin production in the second half of 2027.

Photo credit: PLAGEN
Published: 2 December, 2024

LNG Bunkering

Molgas commences LNG bunkering operations in United Kingdom

Firm successfully completed the first LNG bunkering of “MV Glen Sannox” since the ship was handed over to CalMac Ferries Limited last week.

Published

10 hours ago

December 2, 2024

Admin

Molgas commences LNG bunkering operations in United Kingdom

Molgas Group on Friday (29 November) said it successfully completed the first LNG bunkering of the MV Glen Sannox since the ship was handed over to CalMac Ferries Limited last week, marking its entry into the United Kingdom.

“We would like to thank CalMac Ferries Limited and Ferguson Marine (Port Glasgow) Limited for their trust and long-term collaboration,” the firm said in a social media post.

“This project not only represents a significant step forward in the adoption of cleaner fuels in the maritime industry of the United Kingdom but also for the expansion of our Pan-European Supply Network for the Marine Segment to receive (bio)LNG via various supply assets across multiple countries and ports.”

Photo credit: Molgas Group
Published: 2 December, 2024

Methanol

GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 38.6 to 39.9 Mt by 2030

Information shared by the Methanol Institute meant to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Published

11 hours ago

December 2, 2024

Admin

GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 38.6 to 39.9 Mt by 2030

The Methanol Institute recently shared with Manifold Times the renewable and low-carbon methanol project pipeline November 2024 release produced by Finland-based GENA Solutions Oy (Green Energy Analytics).

Information from the release is meant to provide the bunkering publication’s readers with insight on renewable methanol availability, and to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Key highlights of the November 2024 release are as follows:

The renewable methanol project pipeline increased from 30.5 Mt in October to 31.8 Mt in November (+1.3 Mt). The total renewable and low-carbon methanol project pipeline grew from 38.6 Mt to 39.9 Mt.
As of November 2024, GENA tracks 113 e-methanol plants and projects with total capacity of 18.7 Mt (+0.6 Mt), 77 biomethanol plants and projects with total capacity of 13.1 Mt (+0.7 Mt), and 14 low-carbon methanol plants and projects with total capacity of 8.1 Mt.
Eight projects were added in the November release: four in China, three in Europe and one in Africa. One project was excluded from the Project Navigator due to a change in the final product.
One e-methanol project has started construction in the last month. One small-scale e-methanol plant has started production. Currently, 2.6 Mt of renewable methanol facilities are either operational or under construction.
We estimate that renewable methanol capacity by 2030 could reach 7–14 Mt (22–44% of the project pipeline). However, a lack of long-term off-take agreements and insufficient state support may result in a lower capacity range of 3–7 Mt.