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SMW 2024: Ken Energy and Green COP partner to advance bio bunker fuels in Singapore

Through partnership between its two members, CSA said SGD 10 million will be invested into development and production of biofuel blends and aims to launch commercial-scale production by 2026.

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SMW 2024: Ken Energy and Green COP partner to advance bio bunker fuels in Singapore

The Coastal Sustainability Alliance (CSA), an industry collaborative effort led by Kuok Maritime Group (KMG), on Tuesday 916 April) announced its plans to advance the maritime biofuel ecosystem in Singapore with up to SGD 10 million (USD 7.33 million) in investments. 

The partnership will be spearheaded by two of its Alliance members – Green COP and Ken Energy – which formalised a Memorandum of Understanding (MOU) today at the Tech Stage (EXPO @SMW) at Singapore Maritime Week 2024.

Over the next two years, the CSA aims to develop stable B30, B40 and B50 biofuel blends and achieve production and commercial adoption of up to 50% (B50), derived from 50% agri-waste to Biobutanol – a blend poised to significantly reduce carbon emissions in maritime operations.

This process includes biofuel certification, commencing sea trials, building a production plant by 2025, and launching commercial-scale production by 2026. An initial SGD 500,000 angel investment has been secured for establishing a pilot plant for processing agri-waste, and over SGD 10 million is expected to be invested in scaling production capabilities.

These efforts in decarbonising the maritime sector will contribute to the CSA’s efforts to build the next generation of Singapore’s coastal ecosystem and are timely to address the potential surge in demand for sustainable biofuels.

Mr Tan Thai Yong, Managing Director, Strategic Projects and Technology, Kuok Maritime Group and Chairperson, CSA Council, said: “The formation of biofuel ecosystem under the Coastal Sustainability Alliance demonstrates our commitment to foster partnerships and deliver innovative sustainable maritime solutions for our conventional fleet owners as they progressively switch to lower emissions vessels.

“In bringing together Green COP and Ken Energy, we are laying the groundwork for a new biofuel supply chain and providing a viable alternative in the energy transition for the maritime sector. This initiative is more than an advancement in fuel technology as it exemplifies the power of collaboration, underscoring the CSA’s role as a steward and catalyst for positive change in the maritime industry.”

The CSA is actively driving maritime biofuel development to provide a viable biofuel alternative for vessels to reduce carbon emissions. The ecosystem will secure a ready supply of biofuel for local coastal demand and ensure the quality and stability of the biofuels with supply chain track and trace. This initiative also seeks to bolster Singapore’s standing in the Global Biofuels Alliance over the long term by building new R&D and innovation tracks in line with the nation’s environmental commitments.

Through this partnership, Ken Energy will play a pivotal role in strengthening the market and commercial utilisation of Biobutanol in maritime operations. This comprises vital aspects such as operational feasibility, life cycle assessment, and carbon emission reduction strategies. Ken Energy’s expertise and resources will be instrumental in optimising the practical implementation of Biobutanol for a B30-B50 blend and subsequent market integration in providing B50 to its customer fleet of bunker barges and CSA members.

Desmond Chong, Managing Director of Ken Energy, said: “We believe in the green transition that the maritime industry is embarking on. This conviction underscores our strategic collaboration with Green COP. Leveraging our proficiency in marine transportation logistics alongside Green COP's commendable sustainable biofuel production, we aim to spur the industry's widespread adoption of biofuels."

Green COP, with its proprietary technology, specialises in the efficient conversion of plant-based biowaste into sustainable biofuels through a patented pre-treatment and fermentation process. This innovative, cost-effective approach maximises resource utilisation and minimises waste generation, contributing to the circular economy and environmental sustainability.

Dr Hanson Lee, CEO of Green COP, said, “Green COP presents existing fleet owners with a coherent biofuel solution to achieve their net-zero targets in a progressive manner. We envision a future where Sustainable Marine Fuels (SMF), alongside coastal electrification, become the norm. The CSA has provided us access to market insights, industry collaborations and the necessary incubation for our growth. We look forward to working with more like-minded partners to spur biofuels research and adoption.”

Earlier in March 2024, Green COP signed an MOU agreement with 3Y Energy to develop and optimise green biofuel blends for the maritime and transportation sectors. Through this collaboration, Green COP will set up a pilot plant capable of processing a ton of biomass daily to produce sustainable fuels, while 3Y Energy will provide the innovative solutions in green fuel utilisation including biofuel blends. 

Introducing the B50 blend represents a significant advancement in reducing carbon emissions within the maritime industry. For every metric ton (mt) of B50 fuel burned, carbon emissions are reduced to 1.5 mt, a substantial improvement over the B30 blend, which reduces CO2 emissions to 2.1 mt per metric ton of fuel burned. Additionally, the production of Biobutanol, a key component of the B50 blend, is more energy-efficient and yields a higher volume of fuel compared to traditional methods used for producing Fatty Acid Methyl Ester (FAME). This enhances the sustainability of the fuel production process and supports the maritime sector’s transition to greener energy sources.

The CSA will continue to broaden the scope of the pioneering biofuel ecosystem and seek additional collaborations from stakeholders across the maritime and energy sectors to enhance technological, adoption and logistical capabilities.

This development follows closely on the heels of the Coastal Sustainability Alliance PXO Electric Fleet Signing and MoU Ceremony, held on 12 April.

Related: Alliance commences building of electric tug and supply boat for Singapore waters
Related: SMW 2024: Singapore is preparing port for multi-fuel future, says Transport Minister
Related: SMW 2024: MPA partners with S&P Global and Bunkerchain in digital ship identity
Related: SMW2024: 18th Singapore Maritime Week opens with ‘Actions meet Ambition’ theme
Related: SMW 2024: MPA to set up facility for maritime workforce to train in handling new bunker fuels
Related: SMW 2024: Singapore-Rotterdam Green and Digital Shipping Corridor partners to implement first-mover pilot projects

 

Photo credit: Coastal Sustainability Alliance
Published: 17 April 2024

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Bunker Fuel

ENGINE on Fuel Switch Snapshot: LNG costlier than VLSFO

Singapore’s VLSFO price is cheaper than LNG; LNG approaches parity with VLSFO in Rotterdam; price gap between biofuel and LNG shrinks.

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ENGINE on Fuel Switch Snapshot: LNG costlier than VLSFO

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

27 May 2024

  • Singapore’s VLSFO price is cheaper than LNG
  • LNG approaches parity with VLSFO in Rotterdam
  • Price gap between biofuel and LNG shrinks

LNG bunker benchmarks in Rotterdam and Singapore continue to rise sharply.

With estimated EU Allowance (EUA) costs included in bunker fuel costs, Singapore's LNG bunker price has surged $34-37/mt in the past week after a $29-30/mt jump the week prior.

After adjusting the price for calorific contents to become VLSFO-equivalent, Singapore's LNG price has flipped to a premium of $29-36/mt over its VLSFO in the past week, from a $30-36 discount noted a week prior.

Rotterdam's fossil LNG bunker price has closed even further on VLSFO by $33-34/mt over the past week, making it only $20-33/mt cheaper than VLSFO now.

Biofuel price premium in Singapore over fossil LNG has dropped by another $61-62/mt to $75-81/mt in the past week. In Rotterdam, the bio-bunker premium over LNG has narrowed by $11/mt to $156-168/mt.

VLSFO

Rotterdam's VLSFO price has mostly followed Brent's downward movement over the past week. Rotterdam’s VLSFO benchmark has declined by $11-18/mt in the past week, depending on whether the estimated EUA costs are included.

Availability of VLSFO is normal in Rotterdam, with lead times of 3-5 days recommended to ensure full coverage from suppliers, a trader said.

Singapore’s VLSFO benchmark has also tracked Brent’s movement, falling $32/mt over the past week.

Lead times for VLSFO in Singapore have exhibited significant fluctuations recently. Most suppliers now recommend lead times of up to 10 days for this grade, while some can accommodate stems within five days.

Biofuels

Rotterdam’s B24-VLSFO HBE bunker price has inched $5/mt higher in the past week. When we add estimated EUA costs, the price has gained $8-10/mt, depending on whether we are looking at voyages between EU ports or between EU ports and non-EU ports.

A huge gain in the price of palm oil mill effluent methyl ester (POMEME) feedstock – qualified for Dutch HBE rebates – has pushed the price higher. PRIMA-assessed POMEME price in the ARA has jumped by $70/mt to $1,368/mt in the past week.

In contrast, Singapore’s B24-VLSFO UCOME bunker price has slumped by $25-28/mt, depending on whether the price is adjusted with estimated EUA costs.

The price has declined amid a $10/mt drop in UCOME FOB China, according to PRIMA Markets. Chinese biodiesel exports to the EU are being investigated by the European Commission for "unfairly traded biodiesel". The ongoing investigation has dented Chinese biodiesel inflows into European countries.

LNG  

Rotterdam and Singapore’s LNG bunker prices have seen significant upticks in the past week.

Rotterdam’s LNG bunker benchmark has climbed $16-22/mt higher, depending on whether estimated EU ETS costs are included in the cost of fuel. This increase has been driven by the underlying front-month NYMEX Dutch TTF Natural Gas benchmark, which has seen an uptick due to heavy maintenance activities at Norwegian gas facilities.

Singapore’s LNG bunker benchmark has risen by a staggering $34-37/mt in the past week. The movement is influenced by the upward trend in the underlying Japan/Korea Marker (JKM) gas benchmark and prevailing trends in the Asian LNG market.

Analysts at ANZ Bank noted that “the rally in global gas prices continued amid ongoing buying from importers.” Importers such as Japan and South Korea are restocking gas inventories ahead of the Northern Hemisphere summer, further driving demand.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 28 May 2024

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Biofuel

Japan: NYK begins first long-term bio bunker fuel test run on VLCC

VLCC “Tenjun” received an initial supply of biofuel in Singapore and will continue to use biofuel bunker for three months to comprehensively verify the safe and stable procurement of biofuel for long-term use.

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Japan: NYK begins first long-term bio bunker fuel test run on VLCC

Nippon Yusen Kabushiki Kaisha (NYK) on Monday (27 May) said it began a long-term biofuel test run on its very large crude oil tanker (VLCC) Tenjun on 2 May. 

The vessel received an initial supply of biofuel in Singapore and will continue to use biofuel for approximately three months to comprehensively verify the safe and stable procurement of biofuel for long-term use.

“NYK has conducted many short- and long-term safety trials of biofuel use on bulk carriers, car carriers, and liquefied petroleum gas (LPG) carriers, but this was the first time an NYK-operated VLCC has engaged in a long-term biofuel trial,” the firm said on its website.

Biofuels are made from organic resources (biomass) of biological origin, such as agricultural residues and waste cooking oil, and are considered to have virtually zero carbon dioxide (CO₂) emissions when combusted.

“Since they can be used in heavy-oil-powered ship engines, which are common on large merchant ships, biofuels are considered a key means of reducing greenhouse gas (GHG) emissions in the transition period from heavy oil to zero-emission fuels,” NYK added.

Vessel Particulars

Length : 330.00 metres
Width : 60.00 metres
Gross tonnage: 159,927 tonnes
Deadweight tonnage: 302,108 tonnes
Year built: 2008
Shipbuilder: IHI Marine United Shipbuilding Corporation (Kure City, Hiroshima Prefecture)

 

Photo credit: NYK
Published: 27 May 2024

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Bunker Fuel

ScanOcean to supply B15-DMA bunker fuel for Lakeway Link RoRo service

Both will partner on the use of B15-DMA, a marine fuel with 15% renewable content, for Lakeway Link’s new RoRo service connecting Södertälje, Sweden, and Gdynia, Poland.

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Lakeway Link AB on Friday (24 May) announced a new partnership with Swedish supplier of marine fuels ScanOcean AB on the introduction of B15-DMA, a marine fuel with 15% renewable content, for Lakeway Link's new roll-on/roll-off (RoRo) service connecting Södertälje, Sweden, and Gdynia, Poland.

Under the agreement, ScanOcean AB will supply the B15-DMA fuel, meeting the stringent ISO 8217 compatibility standards and boasting a ISCC-EU certification. 

The fuel not only supports the reduction of greenhouse gas emissions, as mandated by the EU ETS obligations, but also significantly improves the Carbon Intensity Indicator (CII) and Clean Shipping Index (CSI) scores for vessels. The fuel is also compatible towards the upcoming FuelEU Maritime regulations.

The deliveries of B15-DMA will be made in Södertälje, Sweden, to the M/S Lakeway Express, thereby kickstarting the utilisation of this innovative fuel. This partnership underscores both companies’ commitment to environmental sustainability that goes beyond compliance.

Fredrik Hermansson, CEO of Lakeway Link AB, said: “Our decision to partner with ScanOcean AB and begin using B15-DMA fuel is a pivotal step in our journey towards reducing our environmental impact. This initiative not only aligns with our sustainability goals but also sets a new standard in the maritime industry for environmental responsibility.”

Jonatan Karlström, Managing Director of ScanOcean AB, said: “We are thrilled to partner with Lakeway Link AB as they embark on their new ro-ro service. This collaboration is not just a business milestone but a significant leap forward in our mission to provide sustainable fuel solutions. With our new product offerings, we are dedicated to leading the charge towards a greener maritime industry.”

 

Photo credit: Lakeway Link
Published: 27 May 2024

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