Alternative Fuels

UMAS: 2023 IMO GHG strategy sends strong signal to shipping sector

‘2023 IMO GHG strategy sends an unequivocal signal to investors that ships being ordered today, and many already built, have to be capable of running on zero emission bunker fuels,’ says UMAS.

Published

2 years ago

July 11, 2023

Admin

Maritime consultancy UMAS recently said the 2023 IMO GHG strategy sends an unequivocal signal to investors that ships being ordered today, and many already built, have to be capable of running on zero emission bunker fuels.

UMAS said the 7 July marked a historic day for the international shipping sector as the International Maritime Organization (IMO) adopted its 2023 IMO GHG Strategy, which it deemed to be “a much stronger revision of their 2018 Initial Strategy to reduce GHG emissions from international shipping”.

“The 2023 Strategy now envisions a Just and Equitable transition, an entirely absent concept in the Initial Strategy. In terms of a reduction pathway the strategy sets expectations on the sector, and indeed on the development of future policy measures, to strive for 30% GHG reductions by 2030, 80% GHG reductions by 2040, on 2008 levels, and an overall level of ambition of reaching net-zero emissions as close to 2050 as possible. This is a significant strengthening in comparison to the initial strategy and indeed, it amounts to a strong set of signals to the sector,” it said.

Dr Tristan Smith, Reader at UCL Energy Institute, Director of UMAS, said: “This outcome owes so much to the leadership of a small number of climate vulnerable countries – to their determination and perseverance in convincing much larger economies to act more ambitiously and overcome their concerns, for all of our benefit. That this still does not do enough to ensure the survival of the vulnerable countries, in spite of what they have given to help secure the sustainability of global trade, is why more is needed, and all the more reason to give them the credit for what they have done and to heed their calls for a GHG levy.”

The 2023 Strategy also has a new level of ambition, that originates from work originally done by UMAS and the High Level Climate Champions and Global Maritime Forum – namely that uptake of zero or near-zero GHG emissions technologies, fuels and/or energy sources to represent at least 5%, striving for 10% of the energy used by shipping by 2030. This is a key enabler of early investment into the long-run solutions that can ensure this decade will see emergence and increasing use of zero emissions technologies and supply chains, ready for their rapid scaling from 2030.

The strategy overall, with the exception of the carbon intensity ambition, left untouched from the initial strategy, now talks in terms of GHG emissions and includes a well-to-wake (full lifecycle of the fuel) scope for its ambitions. Additionally, the strategy also includes a much clearer signal on forthcoming global measures identifying a basket comprised of both, a goal-based marine fuel GHG intensity standard and a maritime GHG pricing mechanism to be adopted in 2025. Where the strategy falls short is that the levels of reduction contained in the 2030 and 2040 indicative checkpoints, are not aligning the sector to a pathway that limits global warming to 1.5 degrees or below, and so further work on GHG reduction pathway will likely be needed when this strategy is revised in 2028.

Dr Alison Shaw, Policy Lead at UMAS, said: “It was far from smooth sailing at the IMO this week, however Member States have now come together to send a strong signal to the shipping sector. While the 2023 IMO GHG strategy falls short of being clearly aligned to a 1.5 degree pathway, it does set expectations for reductions by 2030 and 2040, for the adoption of global measures, and envisions a just and equitable transition. The strength of the strategy now relies on both the sector’s response and the forthcoming development of global measures by Member States, both of which should be geared to striving for 30% GHG emissions reduction by 2030″

Thus, the 2023 strategy represents a multilateral compromise which unifies Member States around a much stronger set of reduction signals that need to be operationalised by both the sector and the policy makers themselves.

Note: A full overview and FAQs of the discussions from IMO MPEC 80 can be found here.

Photo credit: UMAS
Published: 11 July, 2023

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Singapore: FueLNG achieves 400th LNG bunkering operation milestone

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FueLNG, a joint venture between Keppel Offshore & Marine and Shell Eastern Petroleum Pte Ltd, marked the milestone with bunker tanker FueLNG Bellina successfully refuelling BYD Shenzhen, the world’s largest LNG-fuelled car carrier, at Singapore anchorage during its maiden voyage.

“With a capacity of 9,200 vehicles and equipped with dual-fuel LNG propulsion, the BYD SHENZHEN represents the next generation of low-emission maritime transport,” it said in a social media post.

Shell said it supported BYD Shenzhen on its maiden voyage as the supplier of the LNG bunker fuel.

“Like all LNG dual fuel vessels, BYD Shenzhen is on the pathway to net zero emissions. She can take bio-LNG, and in the future e-LNG, in her fuel mix for further emission reduction and regulatory compliance,” it said in a separate social media post.

Photo credit: Shell
Published: 16 May, 2025

Biofuel

Hong Kong: CPN hits new record for China’s largest B24 biofuel bunkering operation

Chimbusco Pan Nation delivered 6,300 mt of B24-VLSFO in Hong Kong to boxship “XIN LOS ANGELES” on 15 May, exceeding its previous record of 5,500 mt delivered in February 2025.

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Hong Kong: CPN hits new record for China's largest B24 biofuel bunkering operation

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CPN said it delivered 6,300 metric tonnes (mt) of B24-VLSFO in Hong Kong to container ship XIN LOS ANGELES on 15 May.

The supply exceeded CPN’s previous record of 5,500 mt delivered to the same ship in February 2025.

“This collaboration reinforces CPN’s ability to execute large-scale marine biofuel bunkering with precision and reliability,” the company said in a social media post.

“By consistently supplying large volumes of B24 marine biofuel, CPN supports reduced carbon emissions and sustainable shipping practices globally.”

Photo credit: Chimbusco Pan Nation Petro-Chemical
Published: 16 May, 2025

Alternative Fuels

St1 delivers first locally produced biomethane to Swedish maritime sector for bunkering

St1 and its venture St1 Biokraft delivered their own Swedish-produced liquefied biomethane to Terntank’s vessel “Tern Ocean” in a bunkering operation at Port of Gothenburg.

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St1 delivers first locally produced biomethane to Swedish maritime sector for bunkering

Finnish energy company St1 and its venture St1 Biokraft delivered their own Swedish-produced liquefied biomethane, also known as bio-LNG, to the local maritime sector for the first time, according to Port of Gothenburg on Thursday (15 May).

Terntank’s vessel Tern Ocean was bunkered with the biomethane at the Port of Gothenburg.

St1 and St1 Biokraft are now aiming to become large-scale suppliers of biomethane for shipping, while the Port of Gothenburg continues to pursue its goal of becoming Scandinavia’s primary bunkering hub for alternative fuels.

The bunkering operation recently carried out at quay 519 in the Port of Gothenburg was an important pilot test for St1 and St1 Biokraft as suppliers of biomethane to the maritime sector. The operation also served as a pressure test of the collaboration required across all parts of the value chain, with Terntank, gas infrastructure owner Nordion Energi, and the producers themselves all playing crucial roles.

“In order to accelerate the maritime sector’s transition, it is essential that all actors across the value chain pull in the same direction, cooperate, and translate ambitions into practice. We are pleased to have all of this in place at the Port of Gothenburg,” said Therese Jällbrink, Head of Renewable Energy at the Port of Gothenburg.

“Liquefied biomethane is an important part of the fuel palette that must be available to support the shipping industry’s transition. It is one of the fuels the Port of Gothenburg is working with within the framework of green shipping corridors, aimed at creating the conditions for fossil-free logistics chains. This bunkering operation brings us another step closer to our ambition of becoming Scandinavia’s primary bunkering hub for alternative fuels.”

St1 and St1 Biokraft have ambitions to become large-scale suppliers of liquefied biomethane for the maritime sector, with several new production facilities planned across Sweden.

In 2026, energy infrastructure company Nordion Energi will build a liquefaction facility for biomethane at the Port of Gothenburg, which will be connected to the West Sweden gas grid. With the facility in place, a new opportunity will be created for biomethane producers connected to the gas network to reach the maritime market.

“Once the liquefaction plant is completed, we will have a solid solution in place at the Port of Gothenburg. This is a strategic step towards our goal of scaling up and offering competitive liquefied biomethane to the shipping sector, thereby taking a leading position in this segment,” said Ted Gustavsson, Head of Value Chain at St1 Biokraft.

Photo credit: Port of Gothenburg
Published: 16 May, 2025