Alternative Fuels

Study finds shipping is only ‘partially on track’ for tech and supply of scalable zero emission bunker fuels

Industry will have to commit to investing around USD 40 billion annually by 2030 for SZEF bunkering and production; current orders for SZEF-ready ships should increase further, says report.

Industry will have to commit to investing around USD 40 billion annually by 2030 for scalable zero emission fuels bunkering and production, says report on climate action in shipping.

Published

4 years ago

September 30, 2022

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The first-of-its-kind Climate Action in Shipping Report – Progress towards Shipping’s 2030 Breakthrough report was launched on Wednesday (21 September), marking a significant milestone on the road to COP27 and provides an honest stocktake of progress to date, highlighting where coordinated effort and collaboration is needed.

The report finds there has been “significant progress from industry, national governments and positive developments at the IMO”, but converting those commitments into concrete developments is vital for further progress.

The study, led by Katharine Palmer, Shipping Lead for the UN High level Climate Champions team, and Domagoj Baresic, Consultant at sector focused commercial advisory service UMAS, evaluated the 2030 breakthrough goals against key levers for change, which include: technology and supply, finance, policy, demand, and civil society action.

The Getting to Zero Coalition – an industry led Coalition of more than 200 members from across the maritime value chain in partnership with the World Economic Forum and the Global Maritime Forum – has contributed to the effort by validating progress against the five levers of the action plan and held a Workshop in Copenhagen in June with Coalition members providing significant input from the industry to the way forward achieving actions.

In terms of progress on technology and supply of SZEF (Scalable Zero Emission Fuels), the report found that shipping is only “partially on track.” While there are more than 200 shipping decarbonisation pilot and demonstration projects in the pipeline and progress has been observed regarding bunkering and safety guidelines internationally, moving from pilots to SZEF production commitments, investments, and infrastructure development is now a key requirement.

Based on UMAS analysis, it is expected that the industry will have to commit to investing around USD 40 billion annually by 2030 for SZEF bunkering and production, and the report points to the need for greater clarity on funding commitments for SZEF production infrastructure.

It adds that current orders for SZEF-ready ships should increase further, whilst a genuine zero carbon freight market is expected to emerge.

On policy, the authors said that it is vital that positive policy signals, such as consensus on pricing GHG emissions, translate into firm agreements at the IMO in 2023, with the coming year offering an important window of opportunity before the revision of the IMO’s Greenhouse Gas Strategy.

Katharine Palmer, Shipping Lead at the UN High level Climate Champions team said: “To achieve the 2030 Breakthrough goal we need near-term project level action describing tangible, collective action required. This report acts as an honest stocktake of progress which needs to continue to be monitored and tracked. In the run-up to COP27, this is an important milestone to signal a true shift to delivery to convert these commitments and pledges to actions and solutions”

Domagoj Baresic, Consultant at UMAS said: “In order for the shipping industry to decarbonise, multiple actions which can increase production and adoption of scalable zero emission fuels in the industry are required now. This report provides evidence for the significant progress which has been made to decarbonise shipping, yet at the same time shows that further significant action is required. The evidence presented shows now is the time to take the necessary actions to ensure that by 2030 the industry is committed to a decarbonisation trajectory.”

The UMAS and UN High level Climate Champions report, supported by the Getting to Zero Coalition, Lloyd’s Register and the Mission Possible Partnership, follows the October 2021 publication of an action plan by UN Climate Change High Level Champions, UMAS and the Global Maritime Forum setting out the specific near-term actions and milestones around which businesses and governments can unite based on the 2030 Breakthroughs from the High-Level Climate Champions.

Note: The full report of ‘Climate Action in Shipping Report – Progress towards Shipping’s 2030 Breakthrough’ can be found here.

Photo credit: UMAS and UN Climate Change High Level Champions.
Published: 30 September, 2022

Alternative Fuels

Olam Agri, Vitol Bunkers wrap up co-processed VLSFO bio-bunkering operation in Singapore

“MV Scion Mathilda” was supplied with 246.5 mt of co-processed VLSFO at the Port of Singapore, comprising 212 mt of conventional VLSFO and 34.5 mt of co-processed CNSL VLSFO.

Published

7 hours ago

August 21, 2026

Admin

Olam Agri, Vitol Bunkers wrap up co-processed VLSFO bio-bunkering operation in Singapore

Agri-business Olam Agri on Thursday (20 August) said it successfully completed Singapore’s first bio-bunkering operation with Vitol Bunkers, using Very Low Sulphur Fuel Oil (VLSFO) co-processed with Cashew Nutshell Liquid (CNSL), showcasing a waste-to-energy approach.

MV Scion Mathilda was supplied with 246.5 metric tonnes (mt) of co-processed VLSFO at the Port of Singapore, comprising 212 mt of conventional VLSFO and 34.5 mt of co-processed CNSL VLSFO. The product was supplied by Vitol Bunkers and procured by Olam Agri’s ocean freight business.

The fuel was subsequently consumed during a voyage from Caofeidian (China) to Rotterdam (Netherlands), followed by a ballast leg from Rotterdam to Barcarena (Brazil).

Total fuel consumption across the voyage comprised 1,354 mt of VLSFO, 101 mt of MGO and 34.1 mt of co-processed VLSFO. The vessel completed the voyage without any operational remarks, confirming the product’s performance in real-world conditions.

The operation marks a significant step forward in the search for practical, scalable alternatives to conventional marine fuels, and demonstrates that meaningful greenhouse gas (GHG) reductions can be achieved without any change to vessel operations.

Martin Fynbo, Head of Bunkers at Olam Agri’s ocean freight business, said: “The successful deployment of this product, achieving verified greenhouse gas mitigation alongside ensuring operational integrity, serves as a definitive proof of concept. This milestone provides validation to a traditionally risk-averse sector, demonstrating that a previously disregarded bio-product solution can both be operationally viable and sustainable.”

Sherman Yeo, Trading Manager, Vitol Bunkers, said: “This operation proves that co-processed VLSFO can be delivered and consumed at sea without any compromise to vessel performance or operational routine. The mass balance solution we have developed opens up a genuinely new avenue for GHG reduction in marine fuels.”

The co-processed VLSFO carries a GHG intensity of 2.02 gCO2eq/MJ, delivering savings of at least 120 MT CO2eq compared with conventional VLSFO on an equivalent basis. This outcome was achieved with no additional onboard handling or fuel treatment requirements.

Vitol’s co-processing and mass balancing methodology resolves a longstanding challenge in the use of CNSL as a marine biofuel. Direct blending of CNSL has historically been dismissed by the industry due to material compatibility and handling issues. By co-processing CNSL within the refinery stream, Vitol has opened a commercially viable pathway for CNSL to contribute to GHG reduction in shipping.

The co-processed VLSFO used in this operation conforms to RMG380 VLSFO grade and has the same chemical composition and quality as conventional fuel, eliminating the need for additional permissions or special clauses in charter party agreements.

“CNSL, derived as a by-product of cashew processing, represents an underutilised feedstock with genuine potential as a scalable marine biofuel component,” Olam Agri added.

“This trial demonstrates that with the right processing approach, it can be integrated into existing supply chains without disruption.”

Photo credit: Vitol
Published: 21 August, 2026

Alternative Fuels

China: CIMC Enric and Sinopec to team up on LNG, methanol bunker fuels in new deal

Under the new agreement, the companies will deepen cooperation across the LNG value chain and develop bunkering solutions including truck-to-ship bunkering services.

Published

7 hours ago

August 21, 2026

Admin

China: CIMC Enric and Sinopec to team up on LNG, methanol bunker fuels in new deal

Clean energy equipment and services provider CIMC Enric on Monday (17 August) said it has signed a strategic cooperation agreement with Sinopec Fuel Oil Sales Co Ltd, covering LNG, green methanol, shipbuilding and new energy for marine applications.

Under the new agreement, the companies will deepen cooperation across the LNG value chain and develop bunkering solutions including truck-to-ship bunkering services. They also plan to expand into emerging marine fuels and energy solutions, including green methanol and sustainable aviation fuel (SAF).

The partnership will focus on five areas: energy-resource cooperation, shipbuilding, marine-fuel bunkering, vehicle-related services and integrated services.

The agreement was signed in Shenzhen on 14 August by Yang Xiaohu, executive director and president of CIMC Enric, and Xu Tao, deputy general manager and Party committee member of Sinopec Fuel Oil.

The cooperation will span commercial implementation, industry development and technology innovation.

The partnership comes as the shipping industry accelerates its transition towards lower-carbon fuels amid tightening International Maritime Organization emissions regulations and China’s carbon-reduction goals.

CIMC Enric specialises in equipment for the clean-energy sector, while Sinopec Fuel Oil leverages the resource and supply network of China Petroleum & Chemical Corporation (Sinopec). Both said their complementary capabilities provide a basis for moving beyond a conventional equipment-supply relationship towards broader cooperation integrating equipment, fuels, applications and technology.

The two companies began working together in October 2022, initially focusing on LNG and CNG storage and transportation equipment. Their cooperation has since expanded into marine equipment, green methanol bunkering, storage and transportation equipment, and external gas-source procurement.

The companies said they will establish a regular cooperation mechanism and develop detailed projects to accelerate implementation. The partnership is intended to strengthen collaboration between energy-equipment and energy-supply companies and support the maritime industry’s transition towards lower-carbon fuels.

Photo credit: CIMC Enric
Published: 21 August, 2026

Ammonia

Azane signs ammonia bunkering deal with Equinor, first deliveries due in H2 2026

Both signed a framework agreement for the supply of ammonia and the execution of truck-to-ship ammonia bunkering operations for ammonia-fuelled vessels.

Published

7 hours ago

August 21, 2026

Admin

Azane signs ammonia bunkering deal with Equinor, first deliveries due in H2 2026

Azane Fuel Solutions (Azane) on Thursday (20 August) said it has signed a framework agreement with Equinor Energy AS for the supply of ammonia and the execution of truck-to-ship ammonia bunkering operations for ammonia-fuelled vessels.

The first deliveries will commence during the second half of 2026. The agreement establishes a framework for future ammonia fuel deliveries and bunkering operations supporting the maritime industry’s transition towards lower-emission solutions.

“This agreement marks an important milestone for Azane and demonstrates growing confidence in ammonia as a marine fuel,” said Steinar Kostøl, CEO of Azane.

“Truck-to-ship bunkering offers a practical and flexible solution for the early adoption of ammonia-fuelled vessels while the broader ammonia fuel ecosystem continues to develop.”

The agreement covers truck-to-ship ammonia bunkering operations, where ammonia is transported to the quayside and transferred directly to the receiving vessel.

The contract supports Azane’s strategy of enabling near-term deployment of ammonia as a marine fuel while continuing to develop dedicated ammonia infrastructure for future market growth.

Photo credit: Azane Fuel Solutions
Published: 21 August, 2026