Biofuel

UECC reduces emissions in 2023 by more than doubling bio bunker fuel use

UECC boosted the use of ISCC-certified sustainable biofuel B100 on both owned and time-chartered ships to 14,000 mt last year, up from 6,500 mt in 2022.

Published

6 months ago

June 21, 2024

Admin

United European Car Carriers (UECC) recently announced its progress of using alternative bunker fuels and said it was on track to exceed its goal of a 45% emissions reduction by 2030 after more than doubling biofuel usage across its fleet last year.

UECC boosted the use of ISCC-certified sustainable biofuel B100 on both owned and time-chartered ships to 14,000 metric tonnes (mt) last year, up from 6,500 mt in 2022.

The company achieved a total tank-to-wake emissions reduction of over 60,000 tonnes across its 14-vessel fleet in 2023, of which it is estimated increased biofuel use accounted for 40,000 tonnes, with the remainder coming from LNG. This was a near-250% increase on the emissions cut of 24,200 tonnes achieved in 2022.

TheEuropean sustainable shortsea carrier said it has made significant strides in decarbonisation of its fleet of pure car and truck carriers (PCTCs) with the addition of five LNG-fuelled newbuilds and the increased rollout of biofuels in recent years - and this is now showing commercial payback for clients in the light of new green regulations, according to Energy and Sustainability Manager Daniel Gent.

“Consequently, we are well on the way to reach or exceed our 45% emissions reduction target by 2030. This clearly has a positive impact for those bio-supportive cargo owners in terms of reducing costs related to the EU Emissions Trading System (EU ETS),” Gent said.

“Furthermore, 85% of the vessels in our fleet achieved a C-rating last year with the IMO’s Carbon Intensity Indicator (CII) and this year we expect all our ships to achieve this rating or above.”

Gent also pointed out the UECC fleet is already in surplus in relation to the requirement for an average 14.5% reduction in GHG intensity by 2035 under the FuelEU Maritime regulation due to be implemented next year.

The environmental performance of UECC’s current fleet of nine owned and five time-chartered PCTCs has been enhanced through delivery over the past seven years of five eco-friendly newbuilds - a pair of dual-fuelled LNG vessels and trio of multi-fuel LNG battery hybrid units.

The use of LNG reduces emissions of CO2 by around 25%, SOx and particulate matter by 90% and NOx by 85%, while the latest battery hybrid newbuilds exceed the IMO target to reduce carbon intensity by at least 40% from 2008 levels by 2030.

UECC is now looking at sourcing alternative carbon-neutral fuels such as bio-LNG and e-LNG for these vessels to further improve their green performance, according to Gent.

UECC’s adoption of alternative fuels has expanded exponentially since the programme was launched in 2020 with piloting the use of biofuel on its vessel Autosky, bolstered by valuable support from owners of its time-chartered vessels, clients such as BMW, fuel suppliers like GoodFuels, industry partners, and parent companies NYK and Wallenius Lines.

“We are now in the fifth year of running our biofuels programme and it has gone from strength to strength. UECC has sought to take a leading role through early-stage analysis of new biofuels to evaluate their potential in terms of technical suitability, sustainability and commercial viability, both to deliver the best solution for our customers and give the sector a blueprint for assessment and adoption of such fuels based on these three pillars,” Gent explained.

He added that, in terms of sustainability criteria, the company looks for biofuels with the biggest environmental impact, with a typical minimum 90% reduction in GHG intensity from well-to-wake compared with conventional marine fuels.

UECC has steadily expanded the use of green fuels to cover 30% of its fleet in 2023, up from 18% in 2022, and is on track to achieve 50% coverage this year towards the goal of 80% by 2030, though Gent is confident of surpassing this figure.

He said being proactive in trialling new alternative fuels has also promoted engagement with fuel providers, which has led to UECC’s latest initiative together with biofuel supplier ACT Group as part of an industry collaboration to test the Cashew Nut Shell Liquid (CNSL)-based biofuel FS.100 that he believes has “great potential for sustainable shipping”.

“Increasing the pool of sustainable drop-in fuels offers a pathway for shipping to achieve rapid emissions cuts on existing vessels. Combining alternative fuels with energy efficiency measures such as hull cleaning and electrification with shore power can further accelerate decarbonisation,” Gent said.

“By progressively advancing the use of alternative fuels, we are reducing emissions exposure for our clients and securing regulatory compliance long into the future, while also promoting industry efforts to reach the net-zero goal,” he concluded.

Photo credit: United European Car Carriers
Published: 21 June, 2024

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Biofuel

GCMD, VPS provide innovative means to detect fraud in sustainable biofuel supply chain

Newly developed, unique proprietary test method from VPS, which can be applied to all FAME-based biofuels, both 100% (B100) and blends, helps to determine if the FAME is produced from a sustainable source.

Published

3 days ago

December 11, 2024

Admin

Marine fuels testing company VPS on Tuesday (10 December) shared more on a newly released paper on FAME bio bunker fuel from its latest collaboration with Global Centre for Maritime Decarbonisation (GCMD):

The Biofuel Detectives - The Proof is in the Testing

Sustainability is fast becoming a common term within today’s society, certainly when linked to global decarbonisation. The world’s population has become increasingly more aware of the human carbon-footprint and the need to reduce green-house gas emissions.

As an industry, world shipping is not exempt and levels of environmental legislation and directives being placed upon this sector are rapidly multiplying in order to achieve net-zero-carbon dioxide (CO2) pollution. Due to this increasing drive to reduce shipping’s global emissions, the move away from the use of traditional fossil fuels is gathering momentum and heading towards using alternative low-to-zero carbon fuels.

One such fuel type is biofuel and in particular FAME-based biofuel. Whether it be 100% FAME, or blends of FAME with traditional marine fossil fuels, FAME, or Fatty Acid Methyl Esters, to give the full name, provides an immediate option to reduce shipping’s CO2 emissions.

However, how can it be proven that the bio-component of the biofuel, is truly sustainable?

A newly released paper detailing ground-breaking, innovative research and development through a collaboration between the Global Centre for Maritime Decarbonisation (GCMD) and the world’s leading Maritime Decarbonisation Testing and Advisory Services company, VPS, provides the solution.

The paper, entitled Rapid Forensic Analysis of FAME-based Biofuels is now available on the GCMD’s website.

The paper highlights how VPS’ extensive experience in marine fuel analysis and considerable expertise in the use of the high-end forensic analytical technique, gas chromatography (GC), can be utilised to identify the true source of the bio-component (the oil). This newly developed, unique proprietary test method from VPS, can be applied to all FAME-based biofuels, both 100% (B100) and blends, eg B30. This identification helps to determine whether or not, the FAME is produced from a sustainable source.

It should be noted that not all FAME-based Biofuels have the same properties and since suppliers do not indicate the source oil, testing is so important to understand these properties. This is becoming increasingly important as the availability of FAME is driving suppliers to source FAME-based biofuels from an increasingly wide variety of exotic source oils.

VPS is now in a position to offer this unique and vital service to its customers, as a further means to support shipowners and operators in their drive to be compliant with both global and regional environmental legislation and ensure traceable sustainability of their operations.

The GCMD-VPS collaboration is proving to be a partnership which is delivering key solutions to the maritime sector, as shipping moves to becoming a truly sustainable industry.

Photo credit: VPS
Published: 11 December, 2024

Biofuel

Glander and SK Trading arrange for B24 bio bunker fuel supply in Singapore

Both arranged for the successful delivery of 250 metric tonnes of B24 biofuel blend in Singapore; delivery was made possible through SK Trading International, a supplier in Korea and Singapore

Published

4 days ago

December 10, 2024

Admin

Glander International Bunkering (Glander) on Monday (9 December) said it arranged the successful supply of 250 metric tonnes (mt) of B24 biofuel blend with SK Trading International in Singapore.

Glander said the collaboration marked an important step toward reducing carbon emissions in the maritime industry.

The delivery was made possible through SK Trading International, a supplier in Korea and Singapore. The delivery aligns with SK Trading International strategy, which aims to position the company as a global leader in the energy transition.

Dimitris Mertikas, Key Account Manager at Glander International Bunkering, said, “In this landscape, our Key Accounts team has positioned itself next to our customers, supporting them with the help of our trusted suppliers on the journey to new fuels every step of the way – from trial to adoption, one ship at a time. We will continue working closely with both our suppliers and clients to achieve our mutual environmental goals.”

Currently, Glander International Bunkering is capable of supplying second-generation biofuels in more than 100 ports worldwide.

“As the shipping industry increasingly prioritises decarbonisation, collaborations like this are expected to grow, solidifying Glander International Bunkering’s position as a leader in the transition to new fuels,” the firm added.

Photo credit: Manifold Times
Published: 10 December, 2024

Alternative Fuels

ENGINE on Fuel Switch Snapshot: LNG-VLSFO premiums double in a month

LNG premiums have soared; Singapore’s LNG up to premium over B24-LSMGO; bio-bunker prices drop in key bunker ports.

Published

4 days ago

December 10, 2024

Admin

ENGINE on Fuel Switch Snapshot: LNG-VLSFO premiums double in a month

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

9 December 2024

LNG premiums have soared
Singapore’s LNG up to premium over B24-LSMGO
Bio-bunker prices drop in key bunker ports

While VLSFO-equivalent prices for LNG and B24-VLSFO have shown little change over the past week, they have shifted sharply in the past month. LNG, which previously traded at a discount to B24-VLSFO, now commands a substantial premium in major ports like Rotterdam and Singapore.

Rotterdam’s LNG holds a significant $70/mt premium over its B24-VLSFO HBE price, compared to a $61/mt discount last month. Similarly, Singapore’s LNG has flipped from a $52/mt discount to an identical $52/mt premium over its B24-VLSFO UCOME price in the past month.

Singapore’s LNG has even climbed to a narrow $1/mt premium over its B24-LSMGO grade, a reversal from its $20/mt discount last week and $89/mt discount last month.

Meanwhile, LNG now stands at a whopping $228/mt premium over pure VLSFO in Rotterdam. In Singapore, LNG is $208/mt more expensive than pure VLSFO. LNG's premiums have jumped by more than $100/mt in a month.

VLSFO

VLSFO prices in Singapore and Rotterdam have remained almost unchanged in the past week. Rotterdam has seen a $3/mt gain, while Singapore has witnessed a $4/mt drop.

Availability of VLSFO remains tight in Singapore, where 10 days of lead time is recommended.

Supply pressures have eased slightly across VLSFO, LSMGO and HSFO grades in the ARA this week, a trader told ENGINE. VLSFO availability has returned to normal in the past week, with lead times of 3-5 days advised for the grade.

Biofuels

Singapore’s B24-VLSFO UCOME price has shed $3/mt in the past week, while its B24-LSMGO UCOME price has decreased by a sharp $15/mt. The bigger drop in the B24-LSMGO price is partly because of a $19/mt decline in the underlying ENGINE conventional LSMGO price.

The strengthening of used cooking oil (UCO) prices in China has exerted upward pressure on UCOME export prices, PRIMA Markets said.

Rotterdam biofuel benchmarks have almost mirrored the declines seen in Singapore. The B30-VLSFO HBE price in Rotterdam has edged down by $3/mt, while the B30-LSMGO HBE price has declined by a sharp $17/mt.

LNG

Rotterdam's LNG bunker price has dropped by $8/mt to $877/mt in the past week. The downward trend reflects a corresponding decrease in the underlying Dutch TTF Natural Gas contract. While European gas prices have dipped, colder-than-average temperatures across Northern Europe are expected to limit further price drops.

Singapore's LNG bunker price has gained by $6/mt in the past week, tracking gains in the NYMEX Japan/Korea Marker (JKM) contract. Despite a forecast for colder weather in Northeast Asia next week, demand prospects remains subdued for the near term.

By Konica Bhatt, Nithin Chandran and Debarati Bhattacharjee

Photo credit and source: ENGINE
Published: 10 December, 2024