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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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.

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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.

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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