Alternative Fuels

T&E study highlights two-thirds of European green bunker fuel projects at risk

Nearly 4% of European shipping could run on green e-fuels by 2030 but only a third of these projects are guaranteed as fuel suppliers fear a lack of demand.

Published

7 months ago

June 6, 2024

Admin

T&E study highlights two-thirds of European green bunker fuel projects at risk

A new Transport & Environment (T&E) study published on Monday (3 June) showed two-thirds of European green shipping fuel projects are at risk.

T&E’s mapping of green hydrogen projects across Europe shows that nearly 4% of European shipping could run on green e-fuels by 2030.

“But fuel suppliers appear to be reluctant to commit financially to projects without more guarantees that there will be demand for these fuels in the near future,” T&E said.

“This means the vast majority of projects may never come online in this decade, putting Europe’s climate ambitions and thousands of jobs at risk.”

Inesa Ulichina, shipping officer at T&E, said: “Hydrogen projects are popping up across Europe. They have the potential to power hard-to-decarbonise sectors like shipping and provide thousands of good jobs. But at the moment there just isn’t enough certainty and we risk missing this golden opportunity.”

There are at least 17 projects across Europe, set up to provide hydrogen-based e-fuels for ships. If all of these projects become operational, they could meet nearly 4% of EU shipping’s total energy demand by 2030. T&E found 44 other hydrogen projects in Europe that could also provide green fuels for ships, but project developers eye other hydrogen-hungry industries, too.

The mapped projects would easily meet the European Union’s target of 2% green e-fuels in 2034, however, most projects are yet to receive funding and not a single shipping-dedicated project is operational. Fuel producers cite a lack of buyer certainty and investment security as major obstacles. This puts millions of tonnes of green fuels and thousands of skilled jobs at risk. Globally, it is estimated that green shipping could create 4 million new jobs by 2050.

Denmark alone accounts for more than half of all the planned hydrogen volumes across the 61 projects mapped by T&E. But in terms of fuels earmarked for shipping, Spain leads the way and is home to a third of the potential fuel supplies. Despite its large coastline, the UK has very few projects while T&E found none in Italy and Greece.

In the long run, e-ammonia appears to be the more popular option, making up 77% of potential volumes. To date, however, none of these projects has received a final investment decision.

Inesa Ulichina, concluded: “Shipping has a chicken and egg problem. E-fuels producers are waiting for clearer demand signals from ship operators before making large investments.”

“Shipping operators, on the other hand, are waiting for these fuels to scale up and become cheaper before signing off-take agreements. The EU should ensure more supply and demand of e-fuels through regulation, which will provide fuel producers and shipping companies with investment certainty.”

T&E recommended that member states mandate at least 1.2% of shipping fuels to be e-fuels by 2030, as recommended by the EU’s green fuels law (RED III). This would secure all the current projects that have already received funding and allow more projects to reach the final investment decision. Revenues from the EU’s carbon market for shipping (ETS) should also be used to help nascent projects, says T&E.

Photo credit: Transport & Environment
Published: 6 June 2024

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LNG Bunkering

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Bunkering vessel “Hai Yang Shi You 302” supplied more than 10,000 cubic metres of LNG bunker fuel to containership “MSC Adya” at the Ningbo-Zhoushan Port port on 5 January.

Published

3 days ago

January 10, 2025

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China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Zhejiang Pilot Free Trade Zone Zhoushan Area on Wednesday (8 January) said Ningbo-Zhoushan Port successfully completed its first LNG bunkering operation for the year.

Bunkering vessel Hai Yang Shi You 302 supplied more than 10,000 cubic metres (m3) of LNG bunker fuel to containership MSC Adya at the port on 5 January.

Zhejiang Seaport International Trading, the bunker supplier for the operation, successfully obtained the Zhoushan Anchorage LNG bunkering licence in June 2024, extending refuelling services from dock to sea.

The company’s services cover Meishan, Chuanshan, Daxie and other port areas.

As China's first river-sea LNG transport and bunkering ship, Hai Yang Shi You is currently placed permanently at Ningbo Zhoushan Port, providing a variety of bunkering methods such as ship-to-ship and ship-to-shore.

Zhejiang Seaport International Trading will continue to expand the scope of bonded LNG bunkering operations and new alternative fuels such as green methanol, ammonia and biofuels in the Zhoushan Area.

Photo credit: Zhejiang Pilot Free Trade Zone Zhoushan Area
Published: 10 January, 2025

Nuclear

VARD and partners team up to explore nuclear propulsion for shipping

Project, which involves Knutsen Tankers and DNV, will evaluate fourth-generation nuclear reactor technologies for their viability in commercial shipping applications.

Published

3 days ago

January 10, 2025

Admin

VARD and partners team up in project to explore nuclear propulsion for shipping

Norway-based shipbuilder VARD on Friday (3 January) said it has partnered with the Norwegian University of Science and Technology in Ålesund, Norway and other key stakeholders in the NuProShip I project, which explores nuclear propulsion for the maritime sector.

NuProShip, short for "Nuclear Propulsion in Shipping," will evaluate fourth-generation nuclear reactor technologies for their viability in commercial shipping applications.

In this project, an extensive assessment of 99 companies developing advanced reactor technologies led to the selection of three promising reactor types:

Kairos Power (USA): Fluoride high-temperature molten salt reactor using Tri-structural Isotropic (TRISO) fuel particles, designed for robust and efficient operation.
Ultrasafe (USA): Helium-cooled gas reactor, also employing TRISO fuel particles, known for their resilience and safety in extreme conditions.
Blykalla (Sweden): Lead-cooled reactor concept utilizing uranium oxide as fuel, offering high efficiency with advanced cooling mechanisms.

VARD said TRISO fuel particles, noted for their durability and containment properties, play a crucial role in two of these reactor types.

“TRISO technology in fact, is renowned as one of the most resilient nuclear fuel types available today,” it added.

Alongside VARD, the NuProShip project is supported by other partners, including DNV, the Norwegian Maritime Administration, ship owner Knutsen Tankers, and the Spanish nuclear consultancy IDOM.

VARD’s primary contribution involves integrating these reactor systems into various vessel types, assessing the technical challenges to enable the future commercial use of nuclear-powered ships.

Photo credit: VARD
Published: 10 January, 2025

Bunker Fuel

Singapore: KPI OceanConnect, partners deliver first renewable diesel to cruise industry

Delivery of bunker fuel from Neste was made at Singapore Cruise Terminal, with the fuel sourced from Vopak Penjuru Terminal and transported to a cruise ship via barge “Maple”, operated by Global Energy.

Published

4 days ago

January 9, 2025

Admin

Singapore: KPI OceanConnect, partners deliver first renewable diesel to cruise industry

Global provider of marine energy solutions KPI OceanConnect on Wednesday (8 January) said it partnered with Neste and Global Energy on the first successful delivery of renewable diesel, also known as HVO100, for the cruise industry in Singapore.

The landmark delivery of Neste MY Renewable Diesel™ took place in November 2024 and marked a significant milestone for the Asia-Pacific marine sector.

Neste MY Renewable Diesel™ is made from 100% renewable raw materials and is a direct replacement for fossil diesel, helping the industry meet its sustainability goals.

The use of this renewable diesel can result in up to 90% greenhouse gas (GHG) emissions reduction over its lifecycle compared to fossil diesel.

The fuel is a drop-in solution and is suitable for all diesel-powered engines without the need for additional investment or modification to engines or fuel infrastructure.

The delivery of renewable diesel from Neste was made at the Singapore Cruise Terminal, with the fuel sourced from Vopak Penjuru Terminal and transported to the cruise ship via bunker barge Maple, operated by Global Energy.

KPI OceanConnect facilitated the successful delivery of the renewable diesel, working closely with the vessel's technical team to ensure engine compliance. KPI OceanConnect collaborated with Neste to source the fuel and with Global Energy for operational agreements in Singapore waters.

Ee Pin Lee, Head of Commercial APAC, Renewable Products at Neste, said: "This first supply of Neste MY Renewable Diesel to the marine sector in Asia-Pacific is a significant milestone and demonstrates the versatility of the product across a wide range of applications where it can replace fossil diesel. It is an effective solution for enabling the marine sector to be more sustainable."

Chow Munee, Group Business Manager, Global Energy, added: “Partnering with Neste and KPI OceanConnect to supply renewable diesel to the marine sector in Singapore is an important step in helping our clients reduce their environmental impact. By providing seamless and reliable delivery of HVO, we are supporting the industry’s transition without compromising operational efficiency. We’re proud to play a role in driving these crucial efforts within the maritime sector.”

Jesper Sørensen, Head of Alternative Fuels and Carbon Markets at KPI OceanConnect, said: “We are proud to be industry first movers in sourcing and delivering HVO for our clients, helping them reduce their carbon footprint and achieve their environmental goals. By working closely with Neste and Global Energy, we were able to offer high-quality biofuel to our client, laying the groundwork for further fuel uptake and decarbonisation progress. This successful delivery is a testament to how partnerships can help advance the industry’s green transition.”

Photo credit: KPI OceanConnect
Published: 9 January, 2025