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WinGD: Where next for LNG bunker fuel after IMO carbon pricing pause?

Benny Hilström says NZF delay has made more operators consider LNG. Without a global carbon pricing policy, it remains the most affordable, widely available and well-established of all marine alternative fuels.

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WinGD: Where next for LNG fuel after IMO carbon pricing pause?

Benny Hilstroem, Vice President of Market Development at Swiss marine power company WinGD, in an article published on Thursday (20 November), highlighted that LNG remains a strong, credible transition pathway, especially as the industry navigates uncertainty around global carbon pricing and clean-fuel incentives:

With or without the IMO Net Zero Framework, LNG remains a viable transition pathway towards decarbonisation and, with X-DF technology, ultra-low air pollution.

Going into the extraordinary session of IMO’s Marine Environment Protection Committee in mid-October, many in the industry had high hopes that the Net Zero Framework (NZF) would be adopted. WinGD was and remains one of the believers; incentivising the production and uptake of clean fuels is the only way to meet both IMO emissions ambitions and wider global climate targets.

The NZF does not mean, as some have suggested, that the case for LNG fuel or for installing dual-fuel LNG technology is over. Just like our X-DF-A ammonia-fuelled and X-DF-M methanol-fuelled engines, our X-DF dual-fuel LNG engines are ready to use zero or near-zero emissions (ZNZ) fuels. In the case of LNG those ZNZ fuels are bio-methane and e-methane, produced using captured carbon and renewable electricity, which can be used without modification and in any blend in X-DF engines.

Had the NZF been adopted with reduction targets and penalties stringent enough to drive people towards bio-methane, and rewards high enough to encourage e-methane production and use, the transition towards those fuels would have come sooner. A pause in implementing the policy only pushes the transition from fossil LNG further down the road.

That is why the NZF delay has made more operators consider LNG propulsion. Without a global carbon pricing policy and immediate e-fuel incentives, it remains the most affordable, widely available and well-established of all marine alternative fuels. Even fossil LNG can push vessels a long way towards the 30% reduction in emissions sought by 2030—an intermediate checkpoint under IMO’s GHG reduction strategy (which remains in place even after the NZF vote postponement).

WinGD’s X-DF concept has been in service since 2016, with more than 900 engines sold. Over that time we have amassed more than 8 million running hours of experience and continuously refined fuel consumption and emissions performance via innovations including iCER and VCR technology.

Advancing GHG benefits

Take methane slip as an example. In less than a decade we have reduced slippage by 60%, thanks to iCER, VCR and other design adaptations. Combined with low fuel consumption, this means that X-DF outperforms current high-pressure LNG engines in total greenhouse gas emissions in several vessel applications. In even more applications, low opex and initial system costs mean that total vessel lifecycle costs remain lower for X-DF than for high-pressure counterparts, regardless of IMO penalties.

Time in the market and continuous improvement have enabled us to develop an engine platform that will yield the best performance whether operating in fossil LNG or biological or synthetic derivatives. Regardless of the status of NZF, those years of refinements will pay dividends for operators choosing methane.

What happens next is far from clear. If the global framework were to fail, a patchwork of regional regulatory regimes would likely follow. Across several regions, port authorities are working to lower air pollution in their communities. It is therefore possible that, as regions regulate, they expand the scope of emissions policy to include not only GHG but also air pollutants.

In such a case, X-DF again has benefits for operators, offering the best air pollution profile of any LNG dual-fuel engine. That includes SOx, NOx and particulate matter. While IMO’s threshold requirements for NOx and SOx hide X-DF’s advantages, under schemes where operators pay for polluting the air, its low emissions profile would translate to real cost savings.

The Net Zero Framework would not have killed the use of LNG, but its pause certainly enhances the business case. Regardless, WinGD’s near decade of optimising the X-DF platform mean operators will pay less, whether they use fossil LNG or transition to cleaner variants. And it opens up new opportunities for air pollution improvements that could also have a significant financial impact on operators.

 

Photo credit: WinGD
Published: 21 November, 2025

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Alternative Fuels

Report: MSC Cruises ships operated on over 9,800 mt of bio-LNG and biofuels in 2025

MSC Group’s Cruise Division used 9,839 mt of renewable marine fuels in 2025 across its fleet, according to its 2025 Sustainability Report published last week.

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Report: MSC Cruises ships operated on over 9,800 mt of bio-LNG and biofuels in 2025

MSC Group’s Cruise Division used 9,839 metric tonnes (mt) of renewable fuels in 2025 across its fleet, according to its 2025 Sustainability Report published last week. 

The company used a combination of bio-LNG and biofuels across its fleet, resulting in emissions reduction of 48,714 mtCO2e compared to equivalent fossil fuels. 

Based on the Energy Transition Plan, the report showed that MSC Cruises and Explora Journeys remain on track to achieve net-zero greenhouse gas (GHG) emissions for marine operations by 2050. In 2025, MSC Group’s Cruise Division achieved the International Maritime Organization’s (IMO) 2030 carbon intensity reduction target five years ahead of schedule. 

The report said the MSC Cruises demonstrated a net-zero voyage using biomethane was possible with the launch of MSC Euribia in 2023. 

Since then it has actively engaged with fuel producers and suppliers to secure affordable high quality renewable fuels and in 2026, it began blending them into its operations at scale. 

The bio-LNG it sourced in 2025 was produced from a variety of different sustainable feedstocks, including food waste, sewage sludge, organic municipal waste and, most notably, manure. 

As most of its fleet remains conventionally powered, biodiesel represents the only drop-in solution available for these vessels today. 

In 2025, MSC Europa ran on a total of 6,856 mt of bio-LNG while MSC Opera used 1,727 mt of hydrotreated vegetable oil (HVO). MSC Seaview sailed using 572 mt of HVO and 684 mt of a B24-VLSFO blend. 

 

Photo credit: MSC Cruises
Published: 3 June, 2026

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LNG Bunkering

Roatán marks first STS LNG bunkering operation with Carnival cruise ship

According to Francesco Scarso, Senior First Engineer of Carnival Cruise Line, the event marked the first-ever ship-to-ship LNG bunkering operation to take place in Roatán.

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Roatán marks first STS LNG bunkering operation with Carnival cruise ship

Carnival Cruise Line’s LNG-powered flagship, Carnival Jubilee, recently bunkered LNG marine fuel in Roatán, Honduras.

According to Francesco Scarso, Senior First Engineer of Carnival Cruise Line, the event marked the first-ever ship-to-ship (STS) LNG bunkering operation to take place in Roatán.

“​I recently acted as the Person in Charge (PIC) for the inaugural Ship-to-Ship (STS) LNG bunkering operation ever to take place in Roatán, Honduras—fueling Carnival Cruise Line’s beautiful LNG-powered flagship, the Carnival Jubilee,” he said in a social media post. 

“Executing a cryogenic transfer for an Excel-class vessel in a brand-new location brings immense responsibility. From coordinating with port authorities to managing strict safety zones, ensuring ESD link integration, the operation required total focus and zero room for error.”

He added that ​this successful operation marked a giant leap forward for sustainable shipping and the expansion of LNG fueling options.

 

Photo credit: Francesco Scarso
Published: 2 June, 2026

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Business

Hercules Tanker Management acquires five product and chemical tankers

Acquisitions form part of a broader and ongoing fleet development programme at Hercules; programme also includes investing in the construction of an 18,000 cbm LNG bunkering vessel at Hyundai Mipo.

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Hercules Tanker Management plans fleet expansion with new chemical bunker tankers

Hercules Tanker Management (HTM) on Monday (1 June) announced the acquisition of five product and chemical tankers as part of its continued fleet expansion.

HTM is the shipping venture launched by John A. Bassadone, founder and CEO of independent marine fuel supplier Peninsula.

The company acquired STI Madison (2014 LR2), STI Brooklyn (2015 MR2) and STI Black Hawk (2015 MR2) – acquired from Scorpio Tankers; and Nord Marvel (2020 MR2) and Nord Maverick (2020 MR2) – acquired from Norden.

 The acquisitions represent a combined investment of approximately USD 225 million, with all vessels secured on long-term commercial charters, reinforcing Hercules’ strategy of pairing asset ownership with contracted earnings visibility.

“The acquisitions have been completed against the backdrop of a firm tanker asset market, with second-hand values continuing to trade at historically elevated levels due to strong freight markets, constrained fleet growth and limited shipyard availability,” the company said. 

 All five vessels enter the Hercules fleet with long-term commercial employment already secured, consistent with the company’s strategy of combining asset-backed exposure to tanker markets, with downside protection through contracted earnings, and operational flexibility to serve the growing global cargo flows of its partners and affiliates.

The acquisitions form part of a broader and ongoing fleet development programme at Hercules. 

The company continues to progress its newbuilding programme with Jiangmen Hangtong Shipyard in China, where it has committed to a series of up to 10 ‘ultra-spec’ chemical tankers, designed with flexibility to supply conventional fuels, biofuels and methanol, alongside enhanced efficiency and emissions performance. 

In parallel, Hercules is also investing in next-generation energy infrastructure through the construction of an 18,000 cbm LNG bunkering vessel at Hyundai Mipo, scheduled for delivery in 2027.

Market benchmarks indicate vessels of this type are currently contracting at approximately USD 90–95 million per unit, underlining the strategic and capital commitment behind this segment.

John A. Bassadone, Founder and CEO of Hercules Tanker Management, said: “This is another step in building Hercules carefully and deliberately. We are not trying to grow for growth’s sake. Our focus is on acquiring the right assets, at the right time, with the right commercial backing.

“These vessels come with strong employment already in place, which provides stability, while still allowing us to participate in a market we believe has solid fundamentals over the medium term. We are fortunate to be in a position where global cargo flows can underpin our investments, and we remain mindful that discipline is critical in this cycle.

“Additionally, we are currently engaged in negotiations for newbuilds of all sizes including LR2s, MRs, and Handys, as well as additional ultra spec vessels.”

Related: Peninsula founder launches shipping firm Hercules Tanker Management
Related: Hercules Tanker Management plans fleet expansion with new chemical bunker tankers
Related: Hercules Tanker Management orders LNG bunkering vessel from Hyundai Mipo

 

Photo credit: Hercules Tanker Management
Published: 2 June, 2026

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