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Alternative Fuels

Trafigura: Global South has huge potential to produce hydrogen-based bunker fuels

Whitepaper estimates Global South could produce almost 4,000 exajoules per year of competitively priced green hydrogen, against projected annual shipping demand of 20 to 40 exajoules.

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Commodity trading firm Trafigura Pte Ltd on Tuesday (23 May) published new research highlighting the vital role that hydrogen-based fuels will play in decarbonising shipping – and the enormous potential for countries in the ‘Global South’ to produce green ammonia and green methanol to satisfy growing global demand for these low-emission fuels.

The whitepaper titled ‘Charting a course to a greener future for shipping: Low-emission fuel supply and the opportunity for the Global South’ highlighted fuels of the future including hydrogen as a feedstock, methanol, ammonia and biofuels as well as Trafigura’s analysis on low-emission fuel supply production. 

“Our research estimates the ‘Global South’ could produce almost 4,000 exajoules per year of competitively priced green hydrogen, against projected annual shipping demand of 20 to 40 exajoules. This could provide developing countries with the chance to develop new export industries and create thousands of skilled jobs,” said Margaux Moore, co-author and Head of Energy Transition Research and Venture Investments at Trafigura. 

“It will, however, only be realised if the shipping industry can agree on ambitious decarbonisation targets and, crucially, implement a global price on carbon for marine fuels.”

According to the whitepaper, eletrofuels produced in the Global South could be two times more competitive than those produced in Europe. 

“At USD2.00 per kilogramme of green hydrogen, the estimated production costs of electrofuels in the Global South is approximately USD750 per tonne, whereas in Europe, with higher electricity prices, it would be closer to USD1,200 to USD1,500 per tonne,” it said. 

“Even at USD4.00 per kilogramme of green hydrogen, electrofuels produced in the Global South would still be 20 percent cheaper than electrofuels produced in Europe, where we assume a cost of USD5-6 per kilogramme for green hydrogen,” it said. 

The whitepaper used the term electrofuels to describe shipping fuels derived from green hydrogen, which is produced from electrolysis of water using renewable power. 

The paper also found that Latin America, sub-Saharan Africa, the Middle East and Oceania have the potential to produce up to 3,852 exajoules of renewable hydrogen, almost 100 times the amount required to decarbonise the shipping industry.

According to Trafigura’s internal research experts, the global demand for bunker fuel is expected to reach 290 million a year or around 5 million barrels of high sulphur fuel oil per day by 2030. 

The firm also expects methanol bunker demand to reach at least 3 to 4 million mt per year by 2027 taking into consideration the current order book for methanol dual-fuelled vessels according to its research. 

Trafigura said the International Maritime Organization (IMO) is in the process of revising its initial GHG strategy and 2023 presents an important window of opportunity to set a zero, or at minimum net zero, GHG emissions target by 2050, together with ambitious goals for 2030 and 2040. 

By agreeing and implementing demanding science-based decarbonisation targets in its revised GHG Strategy, the IMO can accelerate the development of low- and zero-emission fuels and establish global fuel standards, which together will attract the investment needed to overhaul the infrastructure of the global shipping industry and retrofit, or build, new ships at scale, the firm added. 

“Delaying action will only add to the eventual cost of decarbonisation. The IMO needs to decisively move forward to tackle the shipping industry’s emissions and start the journey to a sustainable and resilient future,” added Rasmus Bach Nielsen, Global Head of Fuel Decarbonisation at Trafigura and co-author of the whitepaper.

Note: The white paper titled ‘Charting a course to a greener future for shipping: Low-emission fuel supply and the opportunity for the Global South’ can be downloaded here.

 

Photo credit: Trafigura
Published: 24 May, 2023

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LNG Bunkering

Singapore-based EPS takes delivery of three LNG dual-fuel bulk carriers

Three vessels are the third, fourth and fifth in the company’s series of 14 Newcastlemaxes being built at the yard, and were delivered five months ahead of their contracted delivery dates.

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Singapore-based Eastern Pacific Shipping (EPS) on Friday (4 September) announced the naming and delivery of three new LNG dual-fuel Newcastlemax bulk carriers from China’s Qingdao Beihai Shipbuilding. 

Cyril Ducau, CEO of EPS, said the vessels were named Mount Victoria, Mount Yulong and Mount Wuyi

The three vessels are the third, fourth and fifth in the company’s series of 14 Newcastlemaxes being built at the yard, and were delivered five months ahead of their contracted delivery dates.

“A big thank you to CSSC Group and Qingdao Beihai Shipbuilding, working alongside our EPS team, for the tremendous collaboration and commitment behind this achievement,” Ducau said in a social media post.  

 

Photo credit: Eastern Pacific Shipping
Published: 7 September, 2026

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LNG Bunkering

LR awards AiP to CSSC Huangpu Wenchong for 12,500 m³ LNG bunker vessel design

Vessel design incorporates Type C LNG cargo tanks and has been evaluated against a range of class notations covering gas operations, automation, environmental performance and cyber resilience.

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Classification society Lloyd’s Register (LR) on Thursday (3 September) said it has awarded Approval in Principle (AiP) to CSSC Huangpu Wenchong Shipbuilding Co., Ltd. for a new 12,500 m³ LNG bunkering vessel design.

The AiP was signed at SMM 2026 in Hamburg and confirms that the vessel concept has successfully completed an independent design assessment against LR’s latest classification requirements.

The new 12,500 m³ vessel design incorporates Type C LNG cargo tanks and has been evaluated against a comprehensive range of class notations covering gas operations, automation, environmental performance and cyber resilience.

LR’s assessment was carried out in accordance with its Rules and Regulations for the Classification of Ships and Rules and Regulations for the Construction and Classification of Ships for the Carriage of Liquefied Gas in Bulk.

Constantinos Chaelis, LR’s Global Gas Segment Director, said: “This project demonstrates the continued market confidence in LNG and the importance of building the supporting infrastructure that enables owners to make practical emissions reductions today, while maintaining flexibility for the future. Through early engagement between shipyard and class, we can accelerate the delivery of robust designs that meet both operational and regulatory requirements.”

A Huangpu Wenchong spokesperson, said: “This Approval in Principle from Lloyd’s Register validates the technical approach and provides a strong foundation for future development. We believe vessels of this type will play an increasingly important role in supporting the energy transition by helping ensure LNG is available where shipowners need it most.”

 

Photo credit: Lloyd’s Register
Published: 7 September, 2026

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Alternative Fuels

DNV at SMM: Chinese shipbuilders, European owners seek closer ties on alternative bunker fuels

Chinese shipbuilders and European shipowners called for closer collaboration on vessel development, alternative fuels and digitalization during the inaugural China-Europe Maritime Summit at SMM 2026.

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Chinese shipbuilders and European shipowners called for closer collaboration on vessel development, alternative fuels and digitalization during the inaugural China-Europe Maritime Summit at SMM 2026, according to classification society DNV on Friday (4 September). 

The summit, jointly organized by the China Association of the National Shipbuilding Industry (CANSI), the German Shipowners’ Association (VDR) and DNV, brought together leaders from two maritime sectors that collectively shape a significant share of the global fleet. 

Energy efficiency, operational flexibility and digital innovation were highlighted as key areas for the industry as it navigates decarbonization targets, evolving regulation and uncertainty around future fuel pathways.

Knut Ørbeck-Nilssen, Group President and CEO at DNV, said: “Gathering leaders from across Chinese shipbuilding, European shipping and the wider maritime value chain in one room is both timely and important. The decisions being made across our industry today will shape shipping for decades to come, and this summit demonstrates a shared commitment to shaping the future of our industry together.”

Xu Peng, Chairman of China State Shipbuilding Corporation (CSSC), said: “China and Europe’s maritime sectors share aligned missions, complementary strengths and promising prospects. This summit can serve as a starting point for deeper cooperation between China’s shipbuilding industry and Europe’s shipping community, and help broaden the boundaries of full‑chain collaboration and build an interconnected ecosystem.”

Dr. Gaby Bornheim, President of the German Shipowners’ Association (VDR), said: “For shipowners, a new vessel is never an investment for the next quarter. It is a commitment for decades. Long-term investments require trusted partnerships, and many of the world’s most advanced commercial vessels are the result of cooperation between European shipowners and Chinese shipbuilders. Excellence is rarely achieved in isolation.”

China’s shipbuilding industry accounts for around 70% of the global orderbook, while European shipowners operate more than one-third of the world’s fleet capacity. As the global shipping industry faces increased uncertainty, finding solutions that provide flexibility is essential. 

The summit featured two high-level panel discussions moderated by Dr. Martin Kröger, CEO of VDR, and Li Yanqing, Vice Chairman and Secretary General of CANSI, bringing together senior executives from leading Chinese shipbuilders, including China Merchants Industry (CMI), Guangzhou Shipyard International (GSI), Shanghai Waigaoqiao Shipbuilding (SWS), and Shanghai Merchant Ship Design & Research Institute (SDARI), alongside European shipowners and operators such as Vogemann Reederei, Briese Schiffahrt, Bernhard Schulte, MPC Containerships, and Grieg Edge, as well as DNV. 

Discussions further highlighted the importance of close China-Europe collaboration to support shipping’s transformation.

 

Photo credit: DNV
Published: 7 September, 2026

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