The Maritime and Port Authority of Singapore (MPA) on Wednesday (17 April) updated participants on Singapore’s methanol and ammonia bunkering capability developments, and net-zero pathways for the domestic harbour craft sector at the Accelerating Digitalisation and Decarbonisation Conference.
MPA said it received a total of 50 submissions, out of which 40% of them proposed end-to-end solutions covering all three areas highlighted in the expression of interest (EOI) for the supply of methanol as a marine fuel in Singapore.
The EOI sought proposals covering three areas; methanol supply, methanol bunkering operating model at commercial scale, and alternatives to the physical transfer of methanol molecules to Singapore, to enable a resilient fuel supply to meet the needs of methanol-capable vessels in Singapore in the coming years.
“Over 60 regional and international companies comprising energy companies, fuel suppliers, traders, bunker operators, and storage companies, participated in the EOI, which MPA said signalled clear business confidence in Singapore as a key offtake location for methanol by international shipping,” it said.
The EOI was launched last year following the completion of the world’s first ship-to-containership methanol bunkering in Singapore in the same year.
Based on consultations with the industry, MPA said the demand for methanol as a marine fuel in Singapore can potentially exceed one million tons per annum (MTPA) before 2030, subject to the pace of developments of supply chains, infrastructure, and regulations globally.
The proposals received for the low carbon methanol supply and delivery are promising, with several projects already in operation or have crossed Final Investment Decision.
On aggregate, these projects have the potential to supply over one MTPA of low-carbon methanol by 2030, subject to commercial decisions and global developments.
Many of the companies plan to use ready storage infrastructure in Singapore and will partner craft operators to build or procure bunker tankers capable of carrying and delivering methanol, taking into consideration MPA’s safety and quality assurance standards, crew training requirements, and methanol bunker tanker specifications.
The proposals received provide strong indications that the industry is preparing for methanol bunker demand to scale up in the coming years, most notably seen in the scheduled delivery of Type II bunker tankers capable of supplying methanol this year.
Insights from the EOI submissions will inform the development of the methanol bunkering regulatory framework to ensure the safe and efficient supply of methanol as a marine fuel in Singapore at a commercial scale.
MPA and Enterprise Singapore (EnterpriseSG), through Singapore Standards Council (SSC), are developing national standards on methanol and also ammonia bunkering.
The standards aim to ensure the safe operations and handling of these fuels and will support the maritime industry’s transition to sustainable alternative fuels. They span areas including custody transfer requirements, operational and safety requirements for the delivery of methanol and ammonia from a bunker tanker to receiving vessels, as well as crew training and competencies. The standards for methanol are expected to be published by EnterpriseSG in 2025.
MPA’s regulatory framework for methanol bunkering licence is expected to be finalised in the coming months. MPA will call for applications for a licence to supply methanol as a marine fuel in Singapore by the end of the year.
“MPA will work closely with the consortiums on the selected chain-of-custody proposals on pilots that assess the feasibility of these approaches and methods, with the aim for further development on a global scale,” it added.
Development of ammonia bunkering capabilities
In March 2024, the world’s first ocean-going ammonia-powered vessel, Fortescue Green Pioneer, successfully conducted its first fuel trial in Singapore4 over a period of six weeks.
The Fortescue Green Pioneer received flag approval from the Singapore Registry of Ships (SRS) and the ‘Gas Fuelled Ammonia’ notation by classification society DNV to use ammonia, in combination with diesel, as a marine fuel.
A second tranche of three tonnes of liquid ammonia will be loaded for the Fortescue Green Pioneer to conduct further tests and trials over the next few weeks.
MPA and the Energy Market Authority (EMA) are currently reviewing proposals to develop an end-to-end solution to provide low- or zero-carbon ammonia for power generation and bunkering on Jurong Island.
The proposals were submitted by the shortlisted consortiums from MPA and EMA’s EOI in a restricted Request for Proposal(RFP). The bidders will be further shortlisted and MPA and EMA will work with the
selected parties on the pre-Front End Engineering Design (pre-FEED) study for ammonia import terminals, ammonia bunkering and ammonia power generation. The pre-FEED is intended to confirm the technical and economic feasibility of the project before MPA and EMA select a lead developer for the project with the government by Q1 2025.
MPA will also be inviting shipping companies with intentions to transport ammonia, or which are already transporting ammonia, to participate in an open non binding Request for Information (RFI) to quote the shipping and insurance cost of ammonia from potential source locations to Singapore. Participants may identify ammonia demand hubs between the source country and Singapore in order that the demand can be aggregated to reap economies of scale in the shipping of ammonia.
Interested parties are invited to visit https://go.gov.sg/mpa-rfi-ammonia-transport to access the RFI document. Submission will close on 17 May 2024, 2359 hrs (Singapore time).
Electrification transition of domestic harbour craft fleet
In January 2024, MPA announced three vessel charging concepts to be piloted in Singapore following the call for proposal to develop, operate, and maintain electric harbour craft (e-HC) charging points in Singapore.
The first charging point pilot, installed by Pyxis and SP Mobility, was recently launched at Marina South Pier.
Insights from the data collected will contribute towards the development of a national e-HC charging infrastructure masterplan, implementation plan, and national standards for e-HC charging infrastructure. MPA is also working with Enterprise Singapore, industry stakeholders and academia to develop a Technical Reference (TR) for e-HC charging and battery swap system. The draft TR is now available for public consultation via https://go.gov.sg/mpa-tr-ehc-charging.
In February 2024, MPA also shortlisted a total of 11 passenger launch and cargo lighter vessel designs following an EOI for e-HC design proposals.
MPA is currently working with Research Institutes and Institutes of Higher Learning to enhance the various vessel designs and reduce their energy requirements. When ready, the reference designs can be progressively marketed, and production orders aggregated from the industry. This is expected to reap overall cost savings for companies making a transition to e-HC.
MPA has received 12 financing and seven insurance proposals in response to the EOI launched in October 2023 to support early adopters of e-HC.
Several banks have expressed interest in offering direct debt financing options for harbour craft owners. The response to the EOI has also affirmed the strong interest from financial institutions and intermediaries in offering alternative financing solutions beyond debt financing to support the sector’s transition to e-HC. In the next phase of the EOI process, MPA will issue a closed call for proposals to shortlist the alternative financing proposal(s) for implementation. MPA will share more on the next steps in the next few months.
The insurance related submissions have highlighted that the proposed insurance premiums for e-HC are comparable to that of conventional harbour craft. To address the feedback received from EOI participants who had submitted insurance proposals, MPA will be consulting the industry to put in place supportive mechanisms to help right-price the premiums. These mechanisms could include setting up of a data repository platform, development of training programmes to promote safety awareness and best practices for e-HC operations, as well as establishing quality assurance framework(s) and mechanisms.
Aside from electrification, biofuel blends of up to B50 are already commercially available. In 2023, 520,000 tonnes of biofuel blends were supplied, which more than tripled from 140,000 tonnes in 2022. MPA is working with industry to develop the standards for up to B100, which is expected to be completed by 2025.
Related: MPA issues EOI seeking for methanol bunker fuel suppliers in Singapore
Related: MPA issues EOI seeking for methanol bunker fuel suppliers in Singapore
Related: Fortescue successfully conducts world’s first ammonia bunker fuel trial in Singapore
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Related: SMW 2023: EOI for ammonia power generation and bunkering closing by 30 April
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Related: MPA: Singapore to trial vessel charging concepts for electric harbour craft
Related: Singapore: MPA shortlists 11 proposals for fully electric harbour craft EOI
Related: MPA: Financiers and insurers ready to support electrification of the domestic harbour craft sector
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Photo credit: Maritime and Port Authority of Singapore
Published: 18 April 2024