Connect with us


Taiwan offering incentives to ‘green’ vessel operations

The country has set aside $2.6 million to reward international vessels which slow steam, consume low sulphur marine fuels.




5a585002eca16 1515737090

Taiwan has set aside a total NT $77 million ($2.6 million) to reward the practise of slow steaming and consumption of low sulphur marine fuels within territorial waters in 2018, according to Taipei Times.

It has dedicated a budget of NT$32 million, NT$22 million from Taiwan International Ports Corp (TIPC) and NT$10 million from the Taiwan Environmental Protection Administration, in incentives for slow steaming operations.

International vessels with a cargo capacity of more than 10,000 metric tonnes (mt) and cruise ships will receive NT$8,000 when they lower their sailing speed to below 12 knots per hour when entering within 20 nautical miles of Taiwan’s seaports.

Meanwhile, the Taiwan Maritime and Ports Bureau has allocated budget of NT$45 million in a trial programme to reward vessels switching to consume low sulphur marine fuel when operating near the country’s ports.

Each ship which does so will be entitled to a subsidy of NT$5,000.

Publication date: 12 January, 2018

Continue Reading

Alternative Fuels

GCMD, BCG survey highlights three maritime decarbonisation archetypes

Survey identified three decarbonisation archetypes within the shipping industry, differentiated in their outlook, investment appetite and the challenges faced.





RESIZED Venti Views on Unsplash ship vessel

The Global Centre for Maritime Decarbonisation (GCMD) and Boston Consulting Group (BCG) conducted an industry survey to take stock of shipowners and operators’ progress in establishing six elements needed for the shipping industry to reach net zero, according to BCG on Wednesday (27 September). 

The survey saw strong participation from 128 shipowners and operators across vessel types, fleet sizes and geographies, which collectively own or operate 14,000 merchant vessels, and account for USD500 billion in revenue.

The duo found high decarbonisation ambitions: Most respondents viewed net zero as a strategic priority, and 77% had already set concrete decarbonisation targets. The industry has also mobilised resources to decarbonise: respondents are investing 2% of their revenues into green initiatives, and 87% have personnel working toward green objectives.

The path to net zero for shipowners and operators requires six elements:

  • A robust strategy and roadmap
  • Four specific decarbonisation levers to reduce emissions: operational efficiency, technological efficiency, fuel transition, and shipboard carbon capture
  • Enablers such as dedicated sustainability teams, strategic investments in green initiatives, internal carbon prices, and digitalization

While the industry has made some progress in adopting mature and cost-effective efficiency levers, adoption of complex or nascent levers remains low. Drop-in green fuels are constrained by costs and supply-side gaps, and optimism for future cleaner fuels is yet to translate into firm commitment.

The industry is now at a pivotal point, with many shipowners and operators ramping up their decarbonisation efforts. Three-quarters of respondents plan to increase investments in green initiatives. Stakeholders can build on this momentum with a variety of supportive actions. But to be effective, they need to tailor their interventions to address the specific challenges that shipowners and operators face at each stage of decarbonisation.

Three Decarbonisation Archetypes

GCMD and BCG saw three archetypes, differentiated in their outlook, investment appetite, and the challenges faced.

Frontrunners have the greatest ambitions and are willing to invest heavily. They are pushing boundaries, adopting even nascent decarbonisation levers, such as wind propulsion and air lubrication. A majority plan to pilot shipboard carbon capture solutions by 2025. Frontrunners are also planning to adopt methanol and ammonia as early as 2026 and 2029 respectively, and the availability of fuels and bunkering infrastructure will be critical to enabling adoption.

Followers believe in decarbonising their fleets, but have tighter investment thresholds and a near-term outlook. They have kept pace with Frontrunners in adopting mature and cost-effective efficiency levers, such as main engine improvements and slow steaming, but are behind in the adoption of nascent levers, such as wind propulsion and air lubrication.

Conservatives are still early in their decarbonisation journey, likely due to a lack of awareness and familiarity with the various decarbonisation levers, and the capabilities to assess and deploy them. They are best supported by measures that increase their familiarity with the levers and help contextualise them to their specific fleets and operational requirements.

The research highlights five key actions for stakeholders:

Conduct technical pilots and facilitate data sharing, especially for nascent levers

  • Create innovative financing mechanisms to de-risk adoption of less mature levers
  • Raise awareness, contextualize levers, and build capabilities, especially among Conservatives
  • Start to build out future fuels infrastructure at ports
  • Develop mechanisms to equalize and share the costs of levers across the ecosystem
  • Maritime decarbonization is a complex, critical endeavor. The successful implementation of these five key actions demands a whole-of-value-chain approach. By working together, stakeholders can transform the maritime sector into a beacon of environmental stewardship, and set a course for a greener future where decarbonization and commercial success go hand in hand.

Note: The GCMD-BCG Global Maritime Decarbonisation Survey report can be downloaded here.

Photo credit: Venti Views on Unsplash
Published: 28 September, 2023

Continue Reading


Itochu enters MoU with firms for study of ammonia bunkering safety for container carrier

Through this cooperation, several companies and organisations will come together to discuss and study safety issues during ammonia bunkering of a container carrier that uses ammonia as a bunker fuel.





Itochu enters MoU with firms for study of ammonia bunkering safety for container carrier

Tokyo-based Itochu Corporation on Tuesday (22 September) said it has executed a Memorandum of Understanding for a joint study of ammonia bunkering safety for an ammonia-fuelled container carrier among eight companies and organisations with the aim of implementing the use of ammonia as a bunker fuel in shipping industry. 

Through this cooperation, several companies and organisations will come together to discuss and study safety issues during ammonia bunkering of a container carrier that uses ammonia as a main fuel.

“This MOU for Ammonia Bunkering Safety for Container Carrier is an important milestone for social implementation of the use of ammonia as marine fuel on a global scale, and also a necessary step toward the realisation of the Integrated Project consisting of the construction of a global ammonia supply chain and the development of ammonia-fuelled ships by ITOCHU and its partner companies,” the firm said in a statement. 

A joint study that will be carried out under the MOU is a successive phase of the existing Joint Study Framework launched in 2021 by 34 companies and organizations including ITOCHU and Joint Study Framework for Ammonia Bunkering Safety launched in 2022 by 16 companies and organizations including ITOCHU, and focused on discussion and study of safety issues of ammonia bunkering to ammonia-fueled container carriers among experts from port authorities, container liner operators, bunkering related players and shipping company. 

A key subject of the joint study under this MOU for Ammonia Bunkering Safety for Container Carrier is the safety assessment for simultaneous operations of container cargo operations and ammonia bunkering in a container terminal, which is generally required for container carriers to achieve operational efficiencies.

ITOCHU said it is promoting a development of ammonia-fueled container carriers with potential partners following the development of ammonia-fuelled bulk carrier, which obtained Approval in Principle in 2022. ITOCHU will accelerate the development of an ammonia-fueled container carrier based on findings of this MOU for Ammonia Bunkering Safety for Container Carrier and plans to bring it to the international shipping market in late 2020s.

ITOCHU will accelerate the development of sustainable energy systems through these initiatives and ensure its contributions to the SDGs and improvement of related efforts, one of the basic policies laid out in its new medium-term management plan, as the company pursues a low-carbon society.

The eight companies and organisations are; Algeciras Bay Port Authority, Spain; Port of Rotterdam, Netherlands; CMA CGM, France; A.P.Moller Maersk A/S, Denmark; Mitsui O.S.K. Lines, Japan; Pavilion Energy Singapore, Singapore; TotalEnergies Marine Fuels, Singapore; and ITOCHU. 

Related: Itochu-led joint study of ammonia as an alternative marine fuel expands to 34 players
Related: 23 industry players participate in joint study of ammonia as an alternative marine fuel
Related: Singapore: Pavilion Energy, MOL, Total join Itochu and Vopak ammonia bunker fuel study
Related: Spain: Itochu, Peninsula enter MOU for joint development of ammonia bunkering in Gibraltar Strait
Related: Japan: “K” Line, ITOCHU and partners receive ClassNK AiP for ammonia-fuelled bulk carrier

Photo credit: Itochu Corporation
Published: 28 September, 2023

Continue Reading

Alternative Fuels

Opportunity Green files complaints against cruise companies for ‘LNG greenwashing’

The NGO filed a series of complaints to UK’s Advertising Standards Authority (ASA) against international cruise companies for ‘misleading advertising of fossil LNG as a green fuel’.





Opportunity Green files complaints against cruise companies for ‘LNG greenwashing’

NGO Opportunity Green on Tuesday (26 September) filed a series of complaints to the UK’s Advertising Standards Authority (ASA) against international cruise companies to try to put an end to “apparent LNG greenwashing”, which it said is potentially misleading consumers.

Alongside the complaints, Opportunity Green has also published a report, (Un)Sustainable from Ship to Shore, highlighting the systemic nature of the cruise industry’s apparently misleading advertising, including claims being made by international cruise companies.

The NGO said cruises are an increasingly popular choice of holiday in the UK. In 2022, British and Irish passengers took 1.7 million cruises according to the Cruise Lines International Association (CLIA), and almost 20.4 million people took a cruise worldwide. 

“CLIA data also showed that 76% of British cruise passengers who sailed in the past 12 months said they were ‘much more’ or ‘more’ aware of environmental and sustainable tourism. And yet, as this report highlights, many of the sustainability messages aimed at consumers could be misleading them,” it said. 

The report identifies three key communication strategies being used by several companies that risk breaching advertising rules in the UK. These are:

  • Advertising the use of fossil LNG as reducing emissions 
  • Advertising fossil LNG as environmentally friendly
  • Advertising the use of fossil LNG as specific initiative of reaching net zero by 2050

Isabela Keuschnigg, Legal Officer at Opportunity Green, said: “Despite what the cruise companies investing heavily in the fuel would like to suggest, fossil LNG is and will remain a polluting fossil fuel. It is not an alternative fuel solution that is consistent with the 1.5°C temperature goal as enshrined in the Paris Agreement.” 

“Cruise companies might be quick to point out carbon emissions savings or air pollution benefits linked to the use of fossil LNG in cruise ships. But they keep quiet about the fuel’s methane emissions, even though research has shown that these can cancel out the supposed climate benefits. Not only does the production of fossil LNG result in significant methane emissions across the supply chain before it reaches the ships as a fuel, but burning it on the ships themselves releases unburned methane into the atmosphere, which is devastating for the climate.”

Carly Hicks, Legal Director at Opportunity Green, said: “We were astounded at the extent to which cruise companies are advertising fossil LNG as a climate solution, when the science suggests that this is pure greenwash. ‘Sustainability’ sells, but the climate emergency will not be solved by meaningless marketing that does nothing other than help ensure the sustainability of a cruise company’s balance sheet.” 

“Consumers – and our climate – deserve better. We are particularly concerned about the systemic nature of the advertising of fossil LNG as a climate-positive fuel by many cruise companies, which is why we are holding these companies to account and filing a series of complaints about their advertisements to the ASA. This tidal wave of greenwash risks giving consumers the impression that taking a cruise can be sustainable, when studies have shown that it can produce more pollution than flying – and fossil LNG is unlikely to change that.”

Note: The full report titled ‘(Un)Sustainable from Ship to Shore’ can be accessed here

Photo credit: Opportunity Green
Published: 27 September, 2023

Continue Reading