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VPS updates Chinese shipping sector on bunker fuel quality, new fuels, and decarbonisation challenges

Representatives from China Shipowners’ Association, China Maritime Safety Administration, VPS and DNV informed the audience on latest developments from the marine fuel and shipping sectors.

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Zhang Ai Guo, Secretary General, China Shipowners’ Association

Marine fuels testing and decarbonisation services company VPS on Thursday (28 March) held its Fuel Quality, New Fuels & Decarbonisation Challenges seminar at Jin Mao Tower in Shanghai, China.

The event was attended by about 100 local shipping executives and graced by Zhang Ai Guo, Secretary General, China Shipowners’ Association (CSA) and Zhang Wei, Director, China Maritime Safety Administration (MSA) Shanghai who both delivered opening speeches.

CSA – Green maritime developments part of national plan

“President Xi Jinping has encouraged green development and the transition to alternative fuels for the maritime sector is an important means towards lower carbon and pollution emissions especially in highly populated areas,” said Mr Zhang of CSA.

“By 2030, we are going to reduce traditional fuel consumption by 20 to 40 million tonnes. The Chinese Ministry of Transport has launched some options for green shipping.

“We going to establish our own standards for green shipping technology. By 2030, green power such as LNG and methanol, as well as other low carbon energy will be used to propel Chinese vessels plying not only inland rivers but also international waters.”

Zhang Wei, Director, China Maritime Safety Administration (MSA) Shanghai

Zhang Wei, Director, China Maritime Safety Administration (MSA) Shanghai

MSA, Shanghai – Establishment of Maritime Energy Efficiency Centre

Mr Zhang of China MSA Shanghai branch updated the audience about the recent establishment of its Maritime Energy Efficiency Centre as part of operations to support International Maritime Organization (IMO) activities.

“The Maritime Energy Efficiency Centre was opened about a week ago and work is driven by the IMO Data Collection System (DCS),” he explained.

“IMO has asked related flag States to record and report fuel oil consumption data of their ships, which will be later used to calculate the vessel’s operational Carbon Intensity Indicator (CII).

“This centre is established to fulfil the requests of IMO and we are going to responsibly provide data of the Chinese fleet to ensure compliance when operating on international waters.”

Captain Rahul Choudhuri, President Strategic Partnerships, VPS

Captain Rahul Choudhuri, President Strategic Partnerships, VPS

VPS – Proposes ‘joint effort’ to enhance biofuel bunker quality standards

Captain Rahul Choudhuri, President Strategic Partnerships, VPS began his presentation by highlighting the ‘Two Mountains’ theory of President Xi which noted clear waters and lush mountains to be invaluable assets when compared to resources of gold and silver.

He further mentioned: “As earlier pointed out by Mr Zhang of China MSA, decarbonisation is a joint effort required by all stakeholders.”

Noting the inadequacy of current ISO 8217 fuel quality standards for biofuels as a marine fuel, Captain Choudhuri said Singapore has developed its own provisional national standard on specifications of marine biofuel (WA 2:2022) and will be happy to work with China to enhance its biofuel bunker quality standards.

“I am pretty sure China will be a big biofuel producer in the future. We should find common waters to develop a strong biofuel standard for local and global use by China’s shipping industry,” he suggested.

Li Ting, Decarbonisation Advisor, VPS

Li Ting, Decarbonisation Advisor, VPS

VPS – Showcases suite of maritime decarbonisation advisory services

Li Ting, Decarbonisation Advisor, VPS meanwhile gave delegates an introduction to the firm’s suite of maritime decarbonisation advisory services including Maress, Portstats and Emsys which leverages upon VPS’ operational, fuel and emissions databases.

Ms Ting shared Maress is a digital management system for fleet data-driven decarbonisation. The subscription-based system, currently used by about 500 vessels, has reduced more than 200,000 metric tonnes of carbon dioxide emissions within the last three years.

“Maress has helped companies such as Tidewater decrease fuel consumption and related GHG emissions by 5% per active vessel in the North Sea fleet, while increasing efficiency by as much as 13% in some vessels,” she said.

“A partnership with SIEM Offshore has shown Maress increasing its overall FO-efficiency for its fleet of 22 vessels by 2.3% higher than the expected consumption baseline.”

 

Photo credit: VPS
Published: 8 April 2024

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LNG Bunkering

Singapore: MPA launches EOI to expand LNG bunkering services amid growing demand

MPA is seeking proposals to explore scalable solutions for sea-based LNG reloading to complement existing onshore LNG bunkering storage and jetty capacities and e/bio-methane supply as a marine fuel.

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RESIZED SG bunker tanker

The Maritime and Port Authority of Singapore (MPA) has launched an Expression of Interest (EOI) to explore scalable solutions for sea-based liquefied natural gas (LNG) reloading to complement the existing onshore LNG bunkering storage and jetty capacities and the supply of e/bio-methane as marine fuel in the Port of Singapore.

MPA said LNG bunkering in Singapore has grown from 16,000 tonnes delivered in 2022 to over 385,000 tonnes delivered from January to October 2024. 

According to the EOI, demand for LNG bunkering is expected to grow further with a growing global fleet of LNG dual-fuelled vessels and competitive LNG bunker prices. 

“The EOI seeks to gather proposals on three areas: to scale up sea-based reloading operations, including ship-to-bunker barge LNG operations; to facilitate the supply of LNG alternatives such as liquefied bio-methane; and to develop floating platform concepts to enhance bunkering safety and efficiency,” MPA added.

“The EOI proposals should also include mitigation measures to address the issue of methane slip on a well-to-wake basis.”

Participants in the EOI do not need to be an existing LNG bunkering licensee. Participants are required to propose models for operationalising sea-based LNG reloading starting from 2025. Participants selected will be required to conduct trials in Singapore to validate the proposed solution’s operational feasibility and safety. 

“Insights gained from the EOI and trials will inform MPA’s review of the LNG licensing framework, including enhancements to supply to better serve the industry’s bunkering needs,” it said. 

Note: Interested parties can visit the MPA website for details and submission guidelines. Proposals must be submitted by 28 February 2025, 1pm (Singapore time).

 

Photo credit: Manifold Times
Published: 13 December, 2024

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LNG Bunkering

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Firm will supply cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel currently being built at Nantong CIMC Sinopacific Offshore & Engineering shipyard in China.

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Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Wärtsilä Gas Solutions, part of technology group Wärtsilä, on Friday (13 December) said it has won a contract to supply Cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel.

The vessel is being built at the Nantong CIMC Sinopacific Offshore & Engineering shipyard in China, for global energy company Vitol.

“Wärtsilä’s ability to engineer, design and deliver a complete system, including the Boil-Off Gas (BOG) management, integrated fuel supply, custody transfer and bunkering transfer systems, was central to the contract award,” Wärtsilä said, adding the order was booked by the company in Q4, 2024. 

Richie Zhu, Sales Manager, Wärtsilä Gas Solutions, China, said: “LNG is today an important marine fuel and is rapidly becoming the preferred choice for owners and operators seeking more sustainable fuel options. The market for LNG bunkering vessels is increasing in line with this trend, and we have established a leading position in supplying modern and reliable systems that optimise overall cargo handling efficiency for such vessels.”

Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

The time charter agreement with Avenir is for one newbuild 20,000 m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total. 

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Related: Vitol secures LNG bunker vessel trio with time charter deal and newbuilding order

 

Photo credit: Wärtsilä
Published: 13 December, 2024

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Newbuilding

UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

Vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from CIMC Raffles Offshore Engineering.

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UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

United European Car Carriers (UECC) on Wednesday (11 December) said it has further expanded its fleet of eco-friendly car carriers with the addition of the dual-fuel LNG newbuild Blue Aspire.

The vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from a Chinese shipyard.

The 200-metre long Pure Car and Truck Carrier (PCTC), delivered from CIMC Raffles Offshore Engineering, has capacity for nearly 7000 vehicles on 12 cargo decks.

UECC will operate the vessel together with another five vessels on a route between the Mediterranean and Northern Europe, traversing the Turkish ports of Yenikoy and Autoport, the German port of Cuxhaven, and Zeebrugge, Belgium every 4.5 days.

“Deployment of the Blue Aspire will boost tremendously capacity and sailing frequency on this busy trade route, currently serviced by five vessels, while further enhancing the sustainability of the UECC fleet,” said the company’s COO Per Christian Mørk.

The latest fleet addition will increase to six the number of UECC-operated vessels plying the North-South network, taking in a total of 10 ports on two routes, after the recent deployment of the renamed Auto Way that was acquired by UECC’s joint owner Wallenius Lines from Höegh Autoliners earlier this year.

It will also boost the size of UECC’s owned and chartered fleet to 15 PCTCs, including five dual and multi-fuel LNG vessels - three with battery hybrid capability - delivered in the past decade, with another two multi-fuel LNG newbuilds currently on order that are set for delivery in 2028 and options for two similar units.

“We are expanding our fleet with greater capacity and cargo-carrying flexibility to provide a more efficient service for clients in response to increasing demand as we see longer-term growth potential in this market,” Mørk explained.

Mørk said sustainability is now a key priority in procurement of maritime transport services to meet the environmental goals of vehicle manufacturers amid new green regulations - including FuelEU Maritime and the EU ETS - that provide a commercial incentive to reduce the cost of GHG emissions.

“UECC is catering to this market requirement with an eco-friendly fleet geared to minimizing the environmental footprint of vessel operations with progressive reductions in carbon intensity, in line with regulation, through adoption of energy-efficient technologies and alternative fuels,” he says.

Mørk noted that, while LNG can reduce emissions by around 25% compared with conventional fossil fuels, there is potential to greatly enhance environmental performance on LNG-fuelled vessels like Blue Aspire by switching to liquefied biomethane (LBM) that offers net-zero potential.

UECC is now increasing application of the latter fuel on its dual-fuel LNG PCTCs after recently securing an LBM supply agreement with Titan Clean Fuels that is forecast to cut its overall fleet emissions by 75,000 tons in 2025.

“The Blue Aspire therefore represents a valuable addition to the UECC fleet that underpins our market commitment to sustainability, while contributing to decarbonization of shipping,” Mørk concludes.

Related: Titan to supply biomethane bunker fuel to UECC multi-fuel ships with new deal

 

Photo credit: United European Car Carriers
Published: 13 December, 2024

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