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US Congressman introduces Bill to reduce pollution in maritime shipping industry

Bill directs the Environmental Protection Agency to set carbon intensity standards for bunker fuels used by ships, said Alan Lowenthal, who represents the Port of Long Beach.

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US Congressman Alan Lowenthal, who represents the Port of Long Beach – one of the nation's busiest cargo ports– on Tuesday (12 July) introduced the Clean Shipping Act of 2022, a legislation aimed at zeroing out pollution from all ocean shipping companies that do business with the U.S.

The bill is cosponsored by Congresswoman Nanette Barragán, who represents the Port of Los Angeles, which with the neighbouring Long Beach port comprise the busiest container port complex in the Western Hemisphere.

Congressman Lowenthal’s bill aims to clean up the shipping industry, which on its own produces more emissions than all but five individual countries in the world. The legislation will also protect the health of port communities, address environmental injustice, and provide solutions to the climate crisis.

“Since my earliest days of public service on the Long Beach City Council three decades ago, I have worked to clean up the maritime industry,” Congressman Lowenthal said. “This legislation continues this effort.”

The bill directs the Environmental Protection Agency (EPA) to:

  1. Set carbon intensity standards for fuels used by ships. The bill sets progressively tighter carbon intensity standards for fuels used by ships consistent with a 1.5° Celsius decarbonisation pathway. These standards would require lifecycle carbon dioxide-equivalent reductions of 20 percent from January 1, 2027, 45 percent from January 1, 2030, 80 percent from January 1, 2035, and 100 percent from January 1, 2040, relative to the 2024 emissions baseline. The EPA will retain regulatory discretion to ensure the continued success of the ocean freight system through this transition, while achieving maximum carbon reductions.
  2. Set requirements to eliminate in-port ship emissions by 2030. By January 1, 2030, all ships at-berth or at-anchor in U.S. ports would emit zero GHG emissions and zero air pollutant emissions.

“The Clean Shipping Act of 2022 is bold legislation that will make the United States a global climate leader in addressing pollution from the shipping industry and protect the health of port communities in Los Angeles and around the country,” Congresswoman Barragán said.

“This is a big step forward for climate-smart ports and a clean energy future for every community. Proud to support this legislation as an original co-sponsor. Thank you to Congressman Lowenthal for your leadership and partnership to clean up the maritime industry and advance the greening of our ports.”

Emitting almost 1 billion metric tonnes of climate pollution per year, the shipping industry’s annual emissions are roughly the same as all the coal plants in the U.S. combined. The sector could account for 17-18 percent of all global emissions by 2050 if corrective policies are not put in place.

The International Maritime Organization (IMO), the United Nations agency that regulates shipping, has set a goal of cutting shipping emissions by at least 50 percent below 2008 levels by 2050; however, the IMO’s strategy is not aligned with achieving the goal of the Paris Agreement to limit global average temperature increase to 1.5-degrees Celsius in order to avoid the worst impacts of climate change. Coming legislation will work to close that gap.

“We no longer have the luxury of waiting to act,” said Congressman Lowenthal. 

“We must face the fact that we are at a tipping point in the climate crisis; we must move beyond fossil fuels, and that includes air, land and sea transportation sources. No emissions sources can go overlooked."

"This legislation will set clear standards and drive the investment and innovation we need to transition to a zero-carbon future. It will clean up our ports once and for all, with a straightforward nationwide policy. This bill is the right policy for the future of our planet, for the health of our communities, and ultimately for the resiliency of goods movement.”

Note: To read the full text of the bill, click here.

 

Photo credit: Alan Lowenthal
Published: 14 July, 2022

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Methanol

Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Firm ordered a 65,700-dwt methanol dual-fuel dry bulk carrier with Tsuneishi Shipbuilding; MOL signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027.

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Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Japanese shipowner Kambara Kisen has ordered a 65,700-dwt methanol dual-fuel dry bulk carrier newbuilding from Tsuneishi Shipbuilding Co., Ltd, according to Mitsui O.S.K. Lines (MOL) on Wednesday (20 September).

MOL said it signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027. 

The vessel will be designed to use e-methanol produced primarily by synthesising recovered CO2 and hydrogen produced using renewable energy sources, and bio-methanol derived from biogas. 

The vessel's design maximises cargo space while ensuring sufficient methanol tank capacity set to allow the required navigational distance assuming various routes, at the same time maximising cargo space. 

MOL added the vessel is expected to serve mainly in the transport of biomass fuels from the east coast of North America to Europe and the U.K. and within the Pacific region, as well as grain from the east coast of South America and the U.S. Gulf Coast to Europe and the Far East.

Details on the time-charter contract:

Shipowner: Kambara Kisen wholly owned subsidiary
Charterer: MOL Drybulk Ltd.
Charter period 2027: -

Details on the newbuilding methanol dual fuel bulk carrier:

LOA: About 200 m
Breadth: About 32.25 m
Draft: About 13.80 m
Deadweight: About 65,700 MT
Hold capacity: About 81,500m3
Shipyard: Tsuneishi Shipbuilding Co., Ltd.

Photo credit: Mitsui O.S.K. Lines
Published: 22 September, 2023

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Methanol

Argus Media: Alternatives may drive methanol market growth

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand, according to Argus.

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RESIZED Argus media

The growth of sustainable alternatives to traditional methanol production sources likely will shape the market over the next several years, industry leaders said this week at the Argus Methanol Forum.

20 September 

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand.

"The aim is to be net zero by 2050 but [those solutions are] expensive today and one of the main challenges to build e-methanol or bio-methanol plants is a huge queue for these pieces of equipment that aren't available," Anita Gajadhar, executive director for Swiss-based methanol producer Proman, said.

Bio-based and e-methanol plants of commercial scale, like Proman's natural gas-fed 1.9 million metric tonne/yr M5000 plant in Trinidad and Tobago, are not ready today.

"But that's not to say 10 years from now they won't be there," Gajadhar added.

Smaller projects are popping up. Dutch fuels and gas supplier OCI Global announced plans last week to double the green methanol capacity at its Beaumont, Texas, facility to 400,000 t/yr and will add e-methanol to production for the first time. Production will use feedstocks such as renewable natural gas (RNG), green hydrogen and biogas.

The globally oversupplied methanol market will not get any major supply additions starting in 2024 until 2027. But that oversupply will not last long, Gajadhar said.

Global demand has slowed this year, driven by stagnate economic growth and higher interest rates, according to industry observers.

As much as half of methanol demand is tied to GDP growth, with total methanol demand estimates at 88.9mn t globally in 2023. This is essentially flat from 2022, but up from 88.3m t in 2021 and 87.7mn t in 2020, Dave McCaskill, vice-president of methanol and derivatives for Argus Media's consulting service, said.

Demand is not expected to rebound to 2019 levels of 89.6mn t until 2024 or 2025, he added.

The period of oversupply combined with lackluster demand places methanol in a transition period, Gajadhar said, which opens the door for sustainable feedstock alternatives to shape market growth.

Danish container shipping giant Maersk and French marine logistics company CMA-CGM announced earlier this week a partnership to drive decarbonization in shipping. The partnership seeks to develop fuel and operations standards for bunkering with alternative fuels. The companies will develop net-zero solutions, including new technology and alternative fuels.

Maersk has previously ordered dual-fuel methanol-powered vessels and CMA-CGM LNG-propelled vessels.

The demand for alternative feedstock-derived fuels is there, but the ability to scale-up such production lags. Certified lower-carbon methanol produced using carbon capture and sequestration — also known as blue methanol— can ramp up much more quickly, according to Gajadhar.

By Steven McGinn

Photo credit and source: Argus Media
Published: 22 September, 2023

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Biofuel

Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Firm expanded its biofuel testing this summer in Europe to two additional ships — Royal Caribbean International’s “Symphony of the Seas” and Celebrity Cruises’ “Celebrity Apex”.

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Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Royal Caribbean Group on Tuesday (19 September) said it successfully completed over 12 consecutive weeks of biofuel testing in Europe. 

Royal Caribbean International’s Symphony of the Seas became the first ship in the maritime industry to successfully test and use a biofuel blend in Barcelona to meet part of her fuel needs. 

The company confirmed onboard technical systems met operational standards, without quality or safety concerns, demonstrating the biofuel blend is a reliable “drop in” supply of lower emission energy that ships can use to set sail across Europe and beyond. 

The tests across Europe also provided valuable data to understand the availability and scalability of biofuel in the region, the firm added. 

Jason Liberty, president and CEO, Royal Caribbean Group, said: “This is a pivotal moment for Royal Caribbean Group’s alternative fuel journey.”

“Following our successful trial of biofuels this summer, we are one step closer to bringing our vision for net-zero cruising to life. As we strive to protect and promote the vibrant oceans we sail, we are determined to accelerate innovation and improve how we deliver vacation experiences responsibly.”

President of the Port of Barcelona, Lluís Salvadó, said: “Royal Caribbean’s success is a clear example of how commitment to innovation makes possible the development of solutions to decarbonise the maritime sector.”

“In this case, it involves the cruise sector and focuses on biofuels, an area in which the Port of Barcelona is already working to become an energy hub, producing and supplying zero carbon fuels, such as green hydrogen and ammonia, and of other almost zero-carbon alternative fuels, such as methanol, biofuels or synthetic fuels. Innovation and collaboration between ports and shipping companies is key to accelerate the decarbonisation of maritime transport.”

The company began testing biofuels last year and expanded the trail this summer in Europe to two additional ships — Royal Caribbean International’s Symphony of the Seas and Celebrity Cruises’ Celebrity Apex

The sustainable biofuel blends tested were produced by purifying renewable raw materials like waste oils and fats and combining them with fuel oil to create an alternative fuel that is cleaner and more sustainable. The biofuel blends tested are accredited by International Sustainability and Carbon Certification (ISCC), a globally recognized organization that ensures sustainability of biofuels and verifies reductions of related emissions.

With Symphony of the Seas departing from the Port of Barcelona and Celebrity Apex departing from the Port of Rotterdam, both ships accomplished multiple sailings using biofuel and contributed critical data on the fuel’s capabilities. 

“These results will help accelerate Royal Caribbean Group’s plans to continue testing the use of different types of biofuels on upcoming European sailings this fall. The company is exploring strategic partnerships with suppliers and ports to ensure the availability of biofuel and infrastructures to advance the maritime energy transition,” the firm said. 

Photo credit: Royal Caribbean Group 
Published: 22 September, 2023

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