Classification society DNV on Tuesday (24 September) released a statutory news on the 10th session of the IMO Sub-Committee on Carriage of Cargoes and Containers (CCC 10). The following are excerpts from the update related to bunker fuel:

The 10th session of the IMO Sub-Committee on Carriage of Cargoes and Containers (CCC 10) was held from 16 to 20 September 2024. CCC 10 agreed on interim guidelines for use of ammonia as fuel, completed the review of the IGC Code, and revised recommendations on entering enclosed spaces.

• Meeting highlights
• Finalized work on interim guidelines for use of ammonia as fuel.
• Continued work on interim guidelines for use of hydrogen as fuel and on interim guidelines for use of low-flashpoint fuels.
• Completed review of the IGC Code.
• Worked on amendments to the IMSBC and IMDG Codes.
• Completed revised recommendations for entering enclosed spaces aboard ships.
• Agreed on a work plan to address loss of containers at sea.

Amendments to the IGF Code and development of guidelines for alternative fuels and related technologies

CCC 10 finalized interim guidelines for the safety of ships using ammonia as fuel. The guidelines include functional requirements for all sections. Due to time constraints, detailed provisions could only be developed for parts of the guidelines. For the remaining parts the principles of the IGF Code should be taken into consideration. 

CCC 10 also continued work on the interim guidelines for the safety of ships using hydrogen as fuel, agreeing on functional requirements for all sections of the guidelines, and on certain fundamental design principles. Work on the interim guidelines will continue in a Correspondence Group aiming for finalization in 2025. 

The interim guidelines for use of oil fuels with a flashpoint between 52°C and 60°C as fuel were not discussed, but work will, if time permits, continue in a Correspondence Group reporting to CCC 11 in 2025.  

Proposals for amendments and Unified Interpretations to the IGF Code were not considered in detail at CCC 10. They will be discussed by a Correspondence Group and further considered at CCC 11 in 2025.

Review of the IGC Code

A Correspondence Group may be established, pending a decision by MSC, to consider the development of interim guidelines for the use of ammonia cargo as fuel. 

The complete amendment proposal will be further considered by MSC 109 in 2024, aiming for adoption in 2025 and entry into force on 1 January 2028.

Recommendations

DNV recommends that customers note the development of interim guidelines for use of ammonia as fuel, as well as the completed review of the IGC Code. 

As CCC is a Sub-Committee, all decisions concerning rules, regulations and dates are subject to further consideration and approval by the Maritime Safety Committee (MSC).

Note: The full statutory news can be found here.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 27 September, 2024 

Marine fuels testing company VPS on Wednesday (25 September) shared a brief to guide offshore vessel owners on the upcoming EU requirements, including four essential questions every offshore shipowner should ask when preparing for the latest Monitoring, Reporting, and Verification (MRV) requirements: 

Executive Summary

The maritime industry is facing significant regulatory changes aimed at reducing greenhouse gas (GHG) emissions. The latest EU regulations, particularly the updated Monitoring, Reporting, and Verification (MRV) requirements, are set to impact offshore vessels starting from January 1, 2025. These regulations mandate comprehensive emissions monitoring and reporting for vessels with a gross tonnage (GT) of 400 and above. Additionally, offshore vessels with a GT of 5,000 or more will be included in the Emissions Trading System (ETS) starting from January 1, 2027. Shipowners must prepare for these changes to ensure compliance and leverage the opportunities for innovation and sustainability.

Key Developments

Updated MRV Requirements: 

Starting from January 1, 2025, offshore vessels with a gross tonnage (GT) of 400 and above will be required to comply with the EU MRV regulations. This extension ensures that emissions data from these vessels are accurately reported and verified, providing a reliable basis for future regulatory measures.

Inclusion in the ETS: 

Offshore vessels with a GT of 5,000 or more will be included in the EU ETS starting from January 1, 2027. The ETS operates on a “cap and trade” principle, where a limit is set on the total amount of GHG emissions, and companies can trade allowances. This system incentivizes shipowners to reduce their carbon footprint.

Potential Outcomes and Consequences

1. Compliance and Reporting Requirements: 

Shipowners will need to invest in systems and processes to accurately monitor and report emissions as required by the MRV regulations. While this does not directly imply purchasing emission allowances, it involves ensuring accurate data collection and verification, which may require operational adjustments and investments in monitoring technologies.

2. Increased Costs from ETS: 

If offshore vessels are included in the ETS from 2027, shipowners will need to purchase emission allowances, which could increase operational costs. However, these costs can be offset by the economic incentives provided by the ETS, such as the ability to sell surplus credits.

3. Technological Advancements: 

The new regulations will likely drive innovation in the maritime industry. Shipowners will be encouraged to adopt renewable and low-carbon fuels, such as advanced biofuels, e-fuels, hydrogen, and ammonia. These advancements will not only help in meeting regulatory requirements but also position companies as leaders in sustainable shipping.

4. Enhanced Market Competitiveness: 

Compliance with the new regulations can enhance a company’s reputation and competitiveness in the market. Customers and stakeholders are increasingly prioritizing sustainability, and companies that demonstrate a commitment to reducing their environmental impact will likely gain a competitive edge.

4 Key Questions Every Offshore Shipowner Should Ask to Navigate the New MRV Regulations

As the maritime industry faces new regulatory challenges, here are four essential questions every offshore shipowner should ask when preparing for the latest MRV requirements:

Scope & Compliance:

"Do I fully understand how the new MRV regulations apply to my fleet, and what are the key definitions of ‘offshore ships’ and ‘ports of call’ I need to consider?"

Reporting & Verification:

"What specific data do I need to report, and how can I ensure my emissions data is verified accurately?"

Operational Adjustments:

"What changes do I need to implement to comply with MRV standards while minimizing costs?"

Certified Biofuels:

"When should I explore certified biofuels, and how can I ensure they meet sustainability criteria?"

Note: The full article by VPS can be read here. 

 

Photo credit: VPS
Published: 26 September, 2024 

Singapore-based bunkering publication Manifold Times recently interviewed Mr. P.K. Mishra, Managing Director of Indian Register of Shipping (IRClass), on alternative bunker fuels including challenges they pose on classification societies and expertise IRClass offers to overcome them.

He also touched on the viability of nuclear for commercial maritime:

MT:  Can you describe the new challenges IMO2030/2050 bring for classification societies, specifically in approving the new breed of vessels using alternative bunker fuels?

The IMO climate goals bring several challenges for classification societies, particularly in approving vessels using alternative fuels. One of the main challenges is ensuring the safety, reliability, and environmental compliance of these fuels, such as hydrogen, ammonia and methanol. Each alternative fuel has unique properties and hazards, requiring updated safety protocols, risk assessments, and design standards.

Classification societies are working towards developing new rules and guidelines for the construction, operation, and maintenance of vessels utilising such alternate fuels.

Another challenge is ensuring global uniformity and consistency in safety standards while addressing regional regulatory differences, which requires extensive collaboration with stakeholders, including shipowners, shipyards, equipment manufacturers, and regulatory bodies.

Sustainability is another aspect – though taken up at IMO level, the classification society has to provide the correct input/understanding to the ship owners and ship operators with regards to its compliance/usage on board and also about the benefits on CII and other incentives as will be decided at IMO.

MT: What are the expertise and solutions IRCLASS offers to overcome these challenges, and how do they differ from the competition?

Indian Register of Shipping brings a wealth of expertise in addressing the challenges posed by the new fuel ecosystem. Our approach is characterized by a deep understanding of both traditional and emerging technologies, while addressing specific needs.

We provide comprehensive services that include risk assessment, feasibility studies, and technical guidance for the integration of alternative fuels into vessel design and operations. Our unique differentiation lies in our commitment to innovation and our proactive approach to developing guidelines and rules for new technologies. IRS invests extensively in research and development to stay ahead of industry trends and regulatory requirements.

Additionally, our global presence combined with local expertise allows us to offer customized support, ensuring compliance with both international and regional regulations. This dual advantage of global reach and local presence, along with our strong industry partnerships, sets us apart from our competitors.

MT: In your opinion, which alternative bunker fuel offers the best solution for shipowners in meeting future IMO2030/2050 and FuelEU/EU ETS requirements? What are its pros and cons?

There isn't a one-size-fits-all answer when it comes to the best alternative fuel for meeting decarbonisation goals. However, each fuel option has its own advantages and disadvantages:

• LNG (Liquefied Natural Gas) is currently the most mature and widely available alternative fuel, with an existing bunkering infrastructure. It offers a significant reduction in CO2 emissions and virtually eliminates sulphur oxides (SOx) and particulate matter.
  However, LNG still emits methane (a potent greenhouse gas) during extraction and transport, which poses environmental concerns. It is also a fossil fuel, which may limit its long-term viability under future decarbonization goals and therefore may be considered as a transitionary fuel.
• Hydrogen has the potential for zero-emission shipping when produced from renewable sources. It is versatile and can be used in fuel cells or internal combustion engines.
  The storage and handling of hydrogen pose significant challenges due to its low energy density and high flammability. The production of green hydrogen is also currently energy-intensive and costly.
• Ammonia does not emit CO2 when burned, making it a promising zero-carbon fuel. It is easier to store and transport than hydrogen and has a well-established production and distribution network. Ammonia is however toxic and poses serious safety risks if not handled properly. The combustion process needs to be optimized to minimize nitrous oxide emissions.
• Methanol is easy to handle, biodegradable, and has a lower carbon footprint compared to conventional fuels. It can be produced from renewable sources like biomass and captured CO2. Methanol has a lower energy density than traditional fuels, which could affect ship range. It also still emits CO2, although at a reduced rate.

At this point in time when no green fuel is under production at scale and available, it is difficult to guess which future fuels will survive, or which of ammonia, hydrogen, methanol, LNG, LPG or additives-rich biofuels might dominate. Rather than one fuel, the industry will select different fuels for different types of ship, and it is important not to eliminate any of the current options too early as an industry.

MT: Taking into consideration future environmental regulations, what variables should a bunker tanker owner/operator, based in different regions around the world, take into consideration when choosing newbuilding criteria?

When choosing newbuilding criteria, bunker tanker owners/operators should consider several key variables in light of future environmental regulations:

Fuel Type and Flexibility: The choice of primary and secondary fuels is critical. Owners/operators should consider fuels that are compliant with current and anticipated future regulations, including IMO2030/2050 and regional requirements like the EU's FuelEU and ETS. Flexibility to switch between fuels could provide a competitive advantage.

Design and Technology: The vessel's design should incorporate energy-efficient technologies, such as hull optimization, advanced propulsion systems, and waste heat recovery systems. Hybrid or dual-fuel engines may provide flexibility and compliance advantages.

Operational Region: Regional regulations and fuel availability will play a significant role. Understanding the environmental regulations of the operating regions and the availability of compliant fuels and bunkering infrastructure is essential.

Lifecycle Costs: Consider the total cost of ownership, including capital expenditure (CapEx) and operating expenditure (OpEx). Investments in more sustainable technologies may have higher upfront costs but could result in lower operational costs over time due to fuel efficiency and reduced emissions penalties.

Safety and Compliance: Ensuring the vessel meets all international and regional safety and environmental regulations is paramount. This includes having the necessary certifications and adopting best practices for environmental performance.

MT: Taking into consideration future environmental regulations, what variables should a shipowner operating in different maritime sectors take into consideration when choosing newbuilding criteria?

Different maritime sectors (e.g., bulk carriers, container ships, tankers) have unique operational profiles, which impact fuel consumption and emissions. Shipowners should select designs and technologies that best align with their specific operational needs and regulatory requirements.

Fuel Type and Future-Proofing: Selecting the right fuel is critical, considering not only current but also anticipated future regulations. Ships that can operate on multiple fuel types may have a competitive advantage, providing flexibility as fuel availability and prices change.

Energy Efficiency Measures: Implementing energy-efficient technologies, such as advanced hull designs, air lubrication systems, and energy recovery devices, will help reduce fuel consumption and emissions, contributing to compliance with future regulations.

Technology and Innovation: Incorporating advanced digital tools for fuel optimization, emissions monitoring, and predictive maintenance can enhance operational efficiency and regulatory compliance.

Environmental Impact: Consideration of the vessel's overall environmental footprint, including emissions, noise pollution, and waste management, is increasingly important. Compliance with stricter environmental standards may require additional investment in technologies that reduce emissions and improve sustainability.

Cost Impact: The costing and future availability of fuel depending upon the vessel’s operating profile plays a major role in selecting a new building project.

MT: Would nuclear power ever be considered a viable solution to power commercial maritime trade? What are its technological challenges to become a mainstream energy source for powering sea-going vessels, and how could they be resolved?

Nuclear power has the potential to be a viable solution for powering commercial maritime trade due to its high energy density, zero emissions during operation, and ability to provide continuous power over long durations without refuelling.

However, there are several technological, regulatory, and societal challenges that need to be addressed for nuclear power to become a mainstream energy source for sea-going vessels. Resolving these challenges would require significant advancements in nuclear technology, robust international collaboration on safety and regulatory frameworks, and addressing public and political concerns about the use of nuclear power in commercial shipping.

The challenges also involve economic viability compared to conventional ships, infrastructure deficit such as for port infrastructure required for nuclear ships.

 

Photo credit: Indian Register of Shipping
Published: 23 September, 2024