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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.

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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

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LNG Bunkering

CMA CGM takes delivery of fourth LNG-fuelled containership

Naming ceremony and delivery of vessel, organised at HD Hyundai Mipo in Ulsan, South Korea, marked entry of the fourth vessel in a series of ten specially designed for Northern Europe feeder services.

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CMA CGM takes delivery of fourth LNG-fuelled containership

French shipping giant on Wednesday (19 June) said it celebrated the naming ceremony and delivery of its fourth LNG-fuelled container ship, CMA CGM Tivoli.

Organised at HD Hyundai Mipo in Ulsan, South Korea, on 16 June, the event marked the official entry of the fourth vessel in a series of ten specially designed for Northern Europe feeder services.

“Featuring optimised features for 45-foot containers, increased capacity for refrigerated containers, and innovative forward accommodation to enhance cargo loading and aerodynamics, CMA CGM Tivoli distinguishes itself with a high ‘length to beam" ratio to maximise hydrodynamic efficiency,” the firm said in a social media post. 

“She departed the shipyard on June 15th, 2024, bound for Busan. We wish fair winds and smooth seas to Captain Artur Dumbrov and his crew.” 

 

Photo credit: CMA CGM
Published: 21 June, 2024

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Methanol

Mitsubishi Shipbuilding receives orders for Japan’s first methanol-fuelled RoRo cargo ship duo

Two ships will be built at the Enoura Plant of MHI’s Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture, with scheduled completion and delivery by the end of fiscal 2027.

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Mitsubishi Shipbuilding receives orders for Japan's first methanol-fuelled RoRo cargo ship duo

Mitsubishi Shipbuilding Co., Ltd., a part of Mitsubishi Heavy Industries (MHI) Group, on Wednesday (19 June) said it has received orders from Toyofuji Shipping and Fukuju Shipping for Japan's first methanol-fueled roll-on/roll-off (RORO) cargo ships. 

The two ships will be built at the Enoura Plant of MHI's Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture, with scheduled completion and delivery by the end of fiscal 2027.

The ships will be approximately 169.9 meters in overall length and 30.2 meters in breadth, with 15,750 gross tonnage, and loading capacity for around 2,300 passenger vehicles.

A windscreen at the bow and a vertical stem are used to reduce propulsion resistance, while fuel efficiency is improved by employing MHI's proprietary energy-saving system technology combing high-efficiency propellers and high-performance rudders with reduced resistance. 

The main engine is a high-performance dual-fuel engine that can use both methanol and A heavy fuel oil, reducing CO2 emissions by more than 10% compared to ships with the same hull and powered by fuel oil, contributing to a reduced environmental impact. 

In the future, the use of green methanol(2) may lead to further reduction in CO2 emissions, including throughout the lifecycle of the fuel. Methanol-fueled RORO ships have already entered into service as ocean-going vessels around the world, but this is the first construction of coastal vessels for service in Japan.

In addition, the significant increase in vehicle loading capacity and transport capacity per voyage compared to conventional vessels will provide greater leeway in the ship allocation schedule, securing more holiday and rest time for the crew, thereby contributing to working style reforms.

Mitsubishi Shipbuilding, to address the growing needs from the modal shift in marine transport against the backdrop of CO2 reductions in land transportation, labor shortages, and working style reforms, will continue to work with its business partners to provide solutions for a range of societal issues by building ferries and RORO vessels with excellent fuel efficiency and environmental performance that contribute to stable navigation for customers.

 

Photo credit: Mitsubishi Shipbuilding
Published: 20 June, 2024

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Methanol

Maersk and Nike to christen methanol-fuelled boxship at Port of Los Angeles in August

Powered by methanol for its maiden voyage and capable of carrying more than 16,000 containers, the vessel will get its new name at a private ceremony at Port of Los Angeles Outer Harbor.

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Maersk

A.P. Moller – Maersk (Maersk) on Wednesday (19 June) said it will be christening one of the world’s first methanol-enabled vessels when it arrives in Los Angeles this August.

The firm invited the public to go aboard the container ship in Los Angeles.

Powered by methanol for its maiden voyage and capable of carrying more than 16,000 containers (TEU), the vessel will get its new name at a private ceremony at the Port of Los Angeles Outer Harbor on Tuesday, August 27. 

Maersk’s CEO Vincent Clerc will be on hand, alongside special guest speakers from Nike and leading state and local officials. Nike is a partner in the name-giving event.

“Nike is committed to protecting the future of sport and we leverage science-based targets to guide us through our Move to Zero journey,” said Venkatesh Alagirisamy, Nike Chief Supply Chain Officer.

“Operating one of the largest supply chains in the world, we have a responsibility to advance the innovation and use of more sustainable methods that get us closer to zero carbon and zero waste. By working with suppliers like Maersk, who share our commitment to sustainability, we are scaling our use of biofuels in ocean transportation, our main first-mile delivery channel.”

“This event is not only an opportunity to celebrate a remarkable engineering achievement, but the chance to highlight that we can navigate towards more sustainable supply chains if we work together,” said Charles van der Steene, Regional President for Maersk North America.

On Wednesday, August 28, Maersk invites the public to tour the 350-meter-long vessel, which will be sailing from Asia. Visitors will be able to see the Sailors’ living quarters and even stand on the bridge from where the captain controls the vessel. Public tours will require visitors register for a free ticket via an online registration site that will be activated and announced in August.

This is the fifth container vessel in Maersk’s fleet that can sail on green methanol bunker fuel.

 

Photo credit: A.P. Moller – Maersk
Published: 20 June, 2024

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